Are Royal Mail workers voting for a pension scheme that won't exist?

[TrueBlueTerrier]

https://socialistworker.co.uk/art/46319 ... wont+exist" onclick="window.open(this.href);return false;

The government could block attempts to introduce a new Royal Mail pension scheme that postal workers’ union leaders are promoting to their members.

Royal Mail workers are voting on whether to accept the deal in a ballot set to end next Wednesday.

But Tory pensions minister Guy Opperman has said the government will not pass new laws needed to introduce a scheme just for Royal Mail. That means Royal Mail workers may not get the deal recommended by CWU union leaders.

CWU leaders want union members to vote for a “collective defined contribution” (CDC) scheme as a replacement to their current pension schemes.

But the scheme can only be launched once the government has passed legislation needed to make CDC work in Britain.

Opperman said the government wouldn’t yet pass the legislation because “there is only one person in the queue at this moment.

“We are not in the business of creating legislation, bespoke pieces, for one party.”

If the government doesn’t pass the legislation then Royal Mail workers would be left on two separate schemes.

Those who began working for Royal Mail before 2008 would lose their current defined benefit scheme.

That means CWU leaders could be left hoping for bosses in other industries to introduce the new scheme—with worrying implications for workers.

University workers have launched big strikes to stop pension cuts. Now their bosses are considering CDC schemes as a way to force the cuts through.

Bosses prefer CDC schemes because they don’t guarantee a specific wage in retirement. Instead the amount paid out depends on how well bosses have invested the pension pot on the market.

If there’s a crash, workers will get less. That’s bad news for anyone on a defined benefit scheme—including 100,000 Royal Mail workers—where there’s a guaranteed payout based on contributions and salary.

Striking university workers recently voted overwhelmingly to reject a pensions offer that is better than a CDC scheme because they won’t accept any cuts. CWU members could do the same.

They forced big concessions from bosses by delivering a huge strike vote. Voting no to the deal—and striking—could win more.

[JKSmudge]

Worrying times when I find myself agreeing with The Socialist Worker.

Just ONE of the many problems with this 'something special' deal - real-terms pay-cut for 3 years for later finishing, trials & tribulations for things that may or may not be plus pension schemes that don't exist

[deltaforce]

The Socialist Worker... Your local Independent Financial advisor.

[fishtank]

The Socialist Worker... Your local Independent Financial advisor.

I think they're giving an opinion not advice.

[jetblack]

Fear not - the Govt. will ratify it despite the flannel this Opperman chap farts out.
Govt. creates pensions crisis by inept response to 2008 financial crisis - they then block the intro. of legislation that gets company pension providers/trustees off the hook ? I doubt it. I reckon they'll bite RMG's hand off. Its a wonder they didn't think of it themselves.
Legislation is what legislators do. Oppermans argument is a bit like arguing that we can't send a fire engine out to extinguish your flaming house cos its just not worth our while until there's another couple of houses on fire in your neighbourhood. Hey - the whole f***ing town is on fire.

They'll do it - its in their interest.

[fishtank]

It's certainly in Royal Mail's interest.
The DBCBS is still a major liability and they'll want to see the back of that ASAP. It's funny how they were promoting that as the long term pension solution before the (non)strike but are now saying it's only a handy transition scheme with a maximum lifespan of 5 years. It's almost as if they planned to go down the CDC route right from the start. Of course if they had proposed the CDC scheme right at the start the union would have had to reject it because it's a million miles from the WiNRs scheme the union wanted but that was then and memories are short.