CWU Responds To Royal Mail Pension Statement Today
Royal Mail have new defined benefit pension scheme, with the FT reporting that:
" Royal Mail calculated earlier this year that the annual costs of maintaining its old defined benefit scheme would triple to £1.3bn if no changes were made. It said today that the new proposals could be funded under its existing £400m annual contributions."
It also reported:
However, the main union within RMG, the CWU; has rejected the offer as falling far short of RMG promises on pensions.
CWU deputy general secretary (postal) Terry Pullinger said:
"The CWU rejects the latest proposal from Royal Mail. It does not meet our aspiration of a wage in retirement pension scheme, but rather still promotes the conventional wisdom of a cash-out arrangement at the point of retirement.
"Whilst using elements of the CWU's proposed Wage in Retirement Scheme, it would still represent a significant shortfall in the pensions promise and it is not something that we are prepared to recommend to our members."
Source: CWU / FT