ROYAL MAIL: PENSIONS WORKING GROUP AND PENSION SCHEME BILL

Branches are advised that a meeting of the Pensions Working Group recently took place to discuss all matters relating to pensions and recent developments including the passage through parliament of the Pension Schemes Bill.  This legislation includes the concept for enabling the introduction of Collective Defined Contribution (CDC) pension schemes.  In this regard, the second reading of the Bill went through the House of Lords on 28^thJanuary with full support from all parties.

It is clear there is a political consensus around this proposed legislation and that Royal Assent will be given later this year, thus making the ability to introduce CDCs a legal reality.  It is also fair to say that the CBI has been supportive of CDCs and responded positively to the government consultation on this matter.

In moving the Pension Scheme Bill in the House of Lords, Baroness Stedman-Scott, the Parliamentary Undersecretary for Work and Pensions said “In developing these measures, I welcome the cross-party and external stakeholder support for the methodology and legislative approach that the Government have used”.  Baroness Stedman-Scott went on to say “It is right for us to support employers and unions working together to bring about such a positive outcome”.  The last sentence quoted was in reference to the collaborative working between Royal Mail and CWU who have been at the forefront in engagement to develop a CDC pension scheme.

Lord Hain and Baroness Drake spoke in the debate and in particular Lord Hain referred to the Union in his speech as follows:  “I commend Royal Mail and the CWU for their efforts in working closely together to pursue this new ‘third way’ pension scheme, which, as CWU national officer Terry Pullinger said at the time of the agreement, would ‘secure our members’ future employment, standard of living and retirement security’.”

We also wish to highlight the Pension and Lifetime Savings Association press release on the Bill’s introduction last October which said that CDC schemes “offer employers increased flexibility and choice in how they structure schemes to benefit savers.”  This statement was also quoted by Baroness Stedman-Scott in her speech when moving the second reading of the Bill.

A new and welcomed part of this Bill is the extension to include Northern Ireland within its provision (originally N.I. was excluded as a devolved matter).  Clearly this is a positive development for our members in Northern Ireland.

A link to DWP’s Explanatory Notes to the Pension Schemes Bill is as follows:

https://publications.parliament.uk/pa/bills/lbill/2019-2019/0005/20005en.pdf

The Pension Schemes Bill is now at the Committee stage (three dates are currently scheduled – 24^th & 26^th February and 2^nd March, although a fourth date may be added) which is followed by a report prior to a third reading in the House of Lords.  After this, the Bill will progress through the House of Commons before attaining Royal Assent which we expect to be after the summer recess.

Meeting with RMPP Trustee

Branches are also advised that our Pensions Working Group met with the RMPP Trustee on 16^thJanuary who presented on the current position in regard to both the Royal Mail Pension Plan (RMPP) and the Royal Mail Defined Contribution Plan (RMDCP).  It should be noted that the RMPP asset value has grown in the last year and there is a small surplus which is a steady state position from the previous year.

Employee and Employer Contribution Rates – RMDCP

A key part of the Trustee presentation related to the contribution rates and the numbers of RMDCP members paying into the different tiers.  This can be found below:TierEmployee ContributionEmployer ContributionTotalDistribution of Scheme MembersNursery5%3%8%13% (c.7k members)14%8%12%2% (c.1k members)25%9%14%2% (c.1k members)36%10%16%83%*

* These scheme members are either already on Standard Tier 3 or will be moved to that Tier when they complete 12 months service.

We are obviously pleased that 83% of scheme members are at Tier 3 with a 16% contribution going in to the pension scheme (6% employee, 10% employer).  However, we are concerned that nearly 7,000 scheme members are currently marooned in the Nursery Tier (an element of this does include new entrants who will automatically migrate to Level 3 after completing a year’s service).

However, a significant proportion of the 7,000 members have been in the Nursery Tier for a number of years and this only attracts a total of 8% into the scheme (5% employee, 3% employer).

The Pension Trustee is similarly concerned with this number and consequently, in January, the RMDCP issued a letter to these scheme members entitled “GRAB YOURSELF AN EXTRA £1,300 A YEAR” together with an associated Choices form for new options to be made to facilitate moving out of the Nursery and on to the main contribution Tiers.  These documents are attached to this LTB and Branches are encouraged to make use of this information when engaging with members that are still in the Nursery Tier.

In simple terms, the key message to get across to the members on the Nursery Tier is that by paying an extra 1% contribution they can actually receive an extra 7% from Royal Mail, making 8% in total which in effect doubles the total contribution into their scheme to 16%.

Whilst we must not provide pension advice, we can clearly point out to the members concerned that they stand to gain an extra 7% from Royal Mail if they agree to pay an extra 1% themselves.  The economics and benefits of doing this are clear.  Indeed, the letter from the RMDCP supports this position with the following comment

“You may have wondered whether this was too good to be true – but it’s not.  So, the Trustees of the Plan are keen to draw your attention to the extra money that would be paid into your pension pot if you select one of the Plan’s other contribution tiers”.  

Obviously our aspiration is to encourage our members to avail themselves of a better pension and in doing so drastically reduce the number of scheme members in the Nursery Tier.

Additionally, eligibility for members to enter the Cash Balance scheme: Branches are reminded that members who have completed 5 years’ Royal Mail service (1 year in the nursery scheme and 4 years’ contribution to the Defined Contribution plan) are eligible to enter the Cash Balance scheme, which is clearly advantageous and should be brought to the attention of members so they are able to maximise their pension.

Next Steps

The Pensions Working Group is due to meet again in May.  Further developments in relation to the Pension Schemes Bill will be reported as appropriate.  If Branches and members wish to know more about their RMDCP pension, they can visit the RMDCP website by using the following link: https://rmdcp.uk/

Any enquiries in relation to the content of this LTB should be addressed to the DGS(P) Department or Andy Furey, Assistant Secretary.

Yours sincerely

Terry Pullinger                                                 Andy Furey

Deputy General Secretary (Postal)          Assistant Secretary

LTB 85.20 RM – Pensions Working Group and Pension Scheme Bill

LTB 85.20 Attachment 1 RoyalMailDC_NurseryTierLetter_25.11.19_V2.0.0CF 16.50

LTB 85.20 Attachment 2 RMDCP ChoicesForm A4 4pp V2 301219

POST OFFICE: COLLECTIVE AGREEMENT – CAREER BREAK POLICY

I would like to advise Branches the Postal Executive has today unanimously endorsed a Collective Agreement for a new Career Break Policy. The National Agreement, which is attached, is being introduced from 24th February. 

The Career Break Policy:

•  Outlines eligibility and principles 
•  Explains the process from request to returning 
•  Gives clarity to the conditions while on a career break 

The new agreement includes a number of key improvements to the previous agreement:

• Removed the disqualification of anyone with a current overpayment from applying by replacing it with employees being eligible if they settle any monies owed before the break commences (Section 2)
• Employees are no longer expected to come in and work for a number of days every year they have off
• Included a discretionary clause for eligibility so that those with poor attendance and ill health will not be automatically disqualified
• The career break is a maximum of two years with the ability to apply for an extension in exceptional cases (Section 4)
• Removed the inability of employees on a Career Break being able to undertake other work (Section 4). This enables those on further education to take part-time work to support their studies
• A robust appeal process has been put in place (Section 7).

In closing, I would like to thank Lynn Simpson, Postal Executive member, who was instrumental in bringing this negotiation to a successful conclusion.

Yours sincerely

Andy Furey
Assistant Secretary

20LTB084 Post Office – Collective Agreement – Career Break Policy

Attachment to 20LTB084

1. A live update from Terry Pullinger https://www.facebook.com/ThecommunicationsUnion/videos/532986837331859/?vh=e&d=n
2. We have re-issued the hugely impactful GLS video on Facebook and twitter https://www.facebook.com/981299138616232/posts/2818220774924050/?vh=e&d=n
3. A draft of the first home mailing (postcard) has been completed and will land with members this weekend.

IAmTheUnion 🙋‍♀🙋‍♂

National Briefing – Wednesday 26th February 2020 – Parcelforce Hub & Depot Representatives

Branches are advised that a National Briefing for the above representatives will be held on Wednesday 26th February 2020 to provide colleagues with an update on latest developments in the Royal Mail Group dispute relating to Parcelforce Worldwide.

The Briefing will be held at the Communication Workers Union H.Q., 150, The Broadway, Wimbledon SW19 1RX, commencing at 11:00 am and concluding no later than 15:00 pm.

The following Representatives are invited to attend the Briefing:

Parcelforce Regional Organisers

Parcelforce Hub Representatives

Parcelforce Depot Representatives

Parcelforce Admin Representatives

Branches should note that this briefing is exclusive to Parcelforce representatives due to the limited capacity of the conference rooms at CWU HQ. Colleagues can however be assured that they will be fully briefed on the Parcelforce developments at the National briefing taking place on the 27th February.

At the time of drafting this notification I can report that dialogue is continuing with Parcelforce as to the status of the release, i.e: paid or unpaid; further information in this regard will be circulated in due course. The important point however is to maximise the attendance of our Parcelforce Representatives on the 26th February, therefore release applications should be submitted on receipt of this LTB.

Any enquiries in relation to this LTB should be addressed to the DGS(P) Department quoting reference 24000 or PNQD Department reference 054.04.

Yours sincerely,

Terry Pullinger                                                              Davie Robertson

Deputy General Secretary (Postal)                           Assistant Secretary

LTB 083-20 – National Briefing – Wednesday 26th February 2020

Joint Review of Annual Leave Arrangements – Update Purchased Annual Leave

Despite the turbulent period that we are in and the current dispute with Royal Mail, we recognise that matters related to contractual and purchased annual leave are key issues for our members. Therefore, the CWU has continued to attempt to address the difficulties related to annual leave, Branches will be aware that activity has been taking place in conjunction with this and in relation to the Joint Review of Annual Leave Arrangements. This has been undertaken in order to establish the exact levels of outstanding Annual Leave that exist and is owed to our members (LTBs 566/18 and 409/19 refer).

As a result of the activity that has taken place it has been identified that as at February 2020,
approximately 1,750 employees had in excess of 10 days outstanding of additional Purchased Leave, which is of course paid for via deductions from individual salaries.

Clearly this indicates that in some instances employees, many of whom are our members, are paying to purchase additional annual leave which they are not receiving and this is of concern to the union and the business.

The Royal Mail policy allows individuals to carry forward 5 days of annual leave from one year to the next. While we understand that some people may wish to build up annual leave in anticipation of specific events, to carry forward anything in excess of the 5 days requires agreement from their line manager.

The business has therefore advised the Union that from the 17th February 2020 they will be writing to employees who purchase additional annual leave and who are likely to have leave in excess of 10 days to carry forward into the next financial year, to invite them to a discussion with their line manager and CWU representative to:

• Agree their leave card is accurate.
• Discuss whether purchasing leave is still their wish.
• Agree a reasonable period to use their accrued leave, which meets with the mutual interest principles of allocation for individuals and the business.

A draft copy of this letter is attached to this LTB for your information.

While the 5-day policy will be highlighted, the main aim of the discussion will be to determine whether in light of any outstanding leave that may exist, the continued purchase of additional annual leave is desired by the individual.

The activity will conclude by the 29th February 2020, which is the PSP cutoff date for opting in/out of purchasing additional annual leave.

Those opting out of purchasing additional annual leave will see their deductions cease at the end of this financial year. They will then return to normal pay and their leave entitlement will be revised to normal contractual leave, plus any outstanding leave from the 2019/20 leave year that is to be taken in the 2020/21 leave year.

Individuals who decide to opt out at this time may opt back in between October 2020 and February 2021, if they wish.

To ensure that the members are supported during the above process and that local representatives are aware of the activity, Branches are requested to circulate this LTB to their representatives at the earliest opportunity.

In addition to the above, progress has also been made in relation to employees purchasing additional leave who increase their contracted hours, e.g. at Christmas, to ensure that they receive the appropriate level of leave commensurate with the higher deductions that are made from their pay during such periods. The current situation is that there will be a manual adjustment made on PSP to ensure that individuals are credited with the appropriate level of additional leave as a result of any increased deductions.

However, due to the current industrial climate there has been no progress in relation to increasing the purchased leave ceiling from 6 to 7 weeks. Any developments in relation to this issue will be communicated to Branches in due course.

Davie Robertson, Assistant Secretary, email: dwyatt@cwu.org or shayman@cwu.org quoting reference number: 703.01.

or

Mark Baulch, Assistant Secretary, email: outdoorsecretary@cwu.org quoting reference number: 445.

Yours sincerely

Davie Robertson

Assistant Secretary

Mark Baulch

Assistant Secretary

LTB 082.20 – Joint Review of Annual Leave Arrangements – Update Purchased Annual Leave

Excessive Leave and POAL Letter

Four Pillars – Honouring our Agreement: Local Industrial Action Ballot Requests

Further to LTB 059/20 dated 4th February 2020 that contained the timetable for the national industrial action ballot, I am writing to advise Branches on the current situation concerning local ballot requests.

Branches will be aware that since the timetable was first published, the DGS(P) Department has been concentrating our efforts on ensuring that we will be in a position to issue the national industrial action notice to ballot on 25th February 2020. This ongoing work is being carried out in conjunction with both the General Secretary and SDGS Departments. Throughout this time however, the Postal Executive has continued to consider and endorse requests for local industrial action ballots for matters that are not directly linked to the current dispute.

In relation to local industrial action ballots that have been requested due to the current management executive action, these continue to be received and will be processed but we are clearly prioritising the national ballot.

In a recent Podcast Question and Answer Session with major Shareholders, Royal Mail Group Chief Financial Officer and Chief Operating Officer Stuart Simpson was asked the following question by an individual from JP Morgan concerning the current approach to executive action by Royal Mail Group – “At what point do you think you may look to change strategy in terms of how you’re approaching the union, go for a bit more of a collaborative approach rather than you taking executive action. At what point might you look to compromise to resolve the impasse?”

In his response, Stuart Simpson said – “But actually we can keep just pressing on and that is what we’re doing and of course the union can then raise local disputes. They haven’t done so at the minute, we’ve got many offices going through change and we haven’t had a local ballot on it yet”.

Branches will recall that when I met with the business in January 2020, I made a request that executive action was stood down in order to de-escalate tensions and therefore provide the appropriate atmosphere for difficult negotiations. This was rejected and Stuart Simpson has now publicised the position of Royal Mail Group.

Stuart Simpson is however under the false impression that the executive action is not being opposed locally. I corrected this during a Facebook Live Session on 12th February 2020 where I outlined the fact that local ballot requests are being received in response to executive action and highlighted one in particular. Additionally, in correspondence with the Chief Transformation and Strategy Officer Achim Dunnwald, I have highlighted the fact that at CWU Headquarters we continue to deal with a growing number of local ballot requests.

I must reiterate that it is not the case that local ballot requests are not being submitted in response to executive action and Branches are encouraged to continue to maximise ballot requests where such action has been notified.

This is indeed the only process to ensure that Branches will be able to challenge executive action going forward and local ballot requests will continue to be progressed as soon as possible.

May I also take this opportunity to pay tribute to our members’ discipline in the face of such immediate and intense local managerial provocation designed to undermine our legal and democratic right to protest by withdrawing our labour.

Never Give Up.

Any enquiries in relation to the content of this LTB should be addressed to the DGS(P) Department.

Yours sincerely,

Terry Pullinger

Deputy General Secretary (Postal)

LTB 081-20 – Four Pillars – Honouring our Agreement Local Industrial Action Ballot Requests