https://www.myroyalmail.com/news/2017/0 ... nsion-plan" onclick="window.open(this.href);return false;
We wrote to you in January to say that we believe the current Plan would soon not be affordable.
The Plan is currently in surplus, but that surplus is expected to run out in 2018. This means that the contributions would need to more than double to over £1 billion. This increase would not be affordable.
To put this in context, many companies have found it very hard to keep their Defined Benefit pension schemes open.
Six per cent of private sector workers in the UK are active members of a Defined Benefit pension scheme. At Royal Mail, almost two-thirds of our employees in the UK – 63 per cent - are active members of the Royal Mail Pension Plan.
With regret, the Company confirms that Sections B and C of the Plan will close to future accrual on 31 March 2018.
Please watch this week’s RMtv Special for more information on our new proposal for how members would build up pension benefits from 1 April 2018. You can also find out more details at http://www.myroyalmail.com/pensions" onclick="window.open(this.href);return false;.
ANNOUNCEMENT : ALL OF ROYAL MAIL'S EMPLOYMENT POLICIES (AGREEMENTS) AT A GLANCE (Updated 2021)... HERE
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MRM.COM : Sections B and C to close to future accrual on 31 March 2018
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POSTMAN
- SITE ADMINISTRATOR
- Posts: 32702
- Joined: 07 Aug 2006, 03:19
- Gender: Male
MRM.COM : Sections B and C to close to future accrual on 31 March 2018
I Wrote-During Covid-Which is still relevant now
It's good to get these types of threads, the ridiculous my manager said bollox, so we can reassure ourselves that while the world is falling apart, Royal Mail managers are still being the low-life C***S they have always been.
My BFF Clash
The daily grind of having to argue your case with an intellectual pigmy of a line manager is physically and emotionally draining.
It's good to get these types of threads, the ridiculous my manager said bollox, so we can reassure ourselves that while the world is falling apart, Royal Mail managers are still being the low-life C***S they have always been.
My BFF Clash
The daily grind of having to argue your case with an intellectual pigmy of a line manager is physically and emotionally draining.
-
POSTMAN
- SITE ADMINISTRATOR
- Posts: 32702
- Joined: 07 Aug 2006, 03:19
- Gender: Male
Defined Benefit cash balance scheme explained
Our new pension proposal is a Defined Benefit cash balance scheme. It is based around the choices you already make at retirement.
We expect the new scheme would boost your annual pension on average, compared to what we originally proposed.
Right now, 97 per cent of Royal Mail Pension Plan (the Plan) members take a tax free lump sum when they retire. They give up annual pension to do that. The proposed Defined Benefit cash balance scheme avoids the need for many Plan members to give up some – or all – of their annual pension in return for a tax free lump sum at retirement. In fact, 60 per cent of members would not have to give up any annual pension to get the maximum tax free lump sum.
How the scheme would work
The Defined Benefit cash balance scheme would automatically build up a guaranteed lump sum between 1 April 2018 – when Sections B and C of the Plan will close to future accrual – and your retirement. That lump sum would then build up alongside the pension you have already built up under the current Plan.
The Company would guarantee a minimum lump sum at retirement. The scheme targets discretionary increases to the lump sum, dependent on investment returns. Once credited, these increases are also guaranteed.
What does this mean for members?
Read this story (https://www.myroyalmail.com/news/2017/0 ... case-study" onclick="window.open(this.href);return false;) for an illustrative example of a Section C member aged 50 in 2018 with 30 years’ pensionable service, who is paid £25,000 a year and stays with the Company until retiring at age 65. In this example, annual pension could increase from £10,400 to £12,100.
More information
Read the News Flash, which is being distributed at sites this week, and watch this week’s RMtv Special for more information. You can also find out more details at http://www.myroyalmail.com/pensions" onclick="window.open(this.href);return false;.
We expect the new scheme would boost your annual pension on average, compared to what we originally proposed.
Right now, 97 per cent of Royal Mail Pension Plan (the Plan) members take a tax free lump sum when they retire. They give up annual pension to do that. The proposed Defined Benefit cash balance scheme avoids the need for many Plan members to give up some – or all – of their annual pension in return for a tax free lump sum at retirement. In fact, 60 per cent of members would not have to give up any annual pension to get the maximum tax free lump sum.
How the scheme would work
The Defined Benefit cash balance scheme would automatically build up a guaranteed lump sum between 1 April 2018 – when Sections B and C of the Plan will close to future accrual – and your retirement. That lump sum would then build up alongside the pension you have already built up under the current Plan.
The Company would guarantee a minimum lump sum at retirement. The scheme targets discretionary increases to the lump sum, dependent on investment returns. Once credited, these increases are also guaranteed.
What does this mean for members?
Read this story (https://www.myroyalmail.com/news/2017/0 ... case-study" onclick="window.open(this.href);return false;) for an illustrative example of a Section C member aged 50 in 2018 with 30 years’ pensionable service, who is paid £25,000 a year and stays with the Company until retiring at age 65. In this example, annual pension could increase from £10,400 to £12,100.
More information
Read the News Flash, which is being distributed at sites this week, and watch this week’s RMtv Special for more information. You can also find out more details at http://www.myroyalmail.com/pensions" onclick="window.open(this.href);return false;.
I Wrote-During Covid-Which is still relevant now
It's good to get these types of threads, the ridiculous my manager said bollox, so we can reassure ourselves that while the world is falling apart, Royal Mail managers are still being the low-life C***S they have always been.
My BFF Clash
The daily grind of having to argue your case with an intellectual pigmy of a line manager is physically and emotionally draining.
It's good to get these types of threads, the ridiculous my manager said bollox, so we can reassure ourselves that while the world is falling apart, Royal Mail managers are still being the low-life C***S they have always been.
My BFF Clash
The daily grind of having to argue your case with an intellectual pigmy of a line manager is physically and emotionally draining.
-
k979aaa
- Posts: 12578
- Joined: 03 Sep 2007, 19:14
- Gender: Male
- Location: THE NORTH
MRM.COM : Sections B and C to close to future accrual on 31 March 2018
This argument of we will be all better off when the company will pay significantly less in the pot is pie in the sky argument based upon an assumption based on one individual example yet everyone's circumstances are different! But the pot will still have all we need to draw on and we will all be better off as we pay less tax because we will get less in the end! I do not care for this crap being fed to us all it's just we all will not have a pot to piss in never mind a pension which we were promised upon starting in the whole sorry saga of greed by royalmail and the UK governments since 1997!