Royal Mail Collective Pension Plan – Members’ Consultation
Branches will be aware that the Pension Schemes Act 2021 received Royal Assent in February this year and this provided the primary legislative framework for Collective Defined Contribution (CDC) pension schemes in the UK. Royal Mail Group (RMG) and CWU had previously committed to implementing a CDC scheme and since Royal Assent, we have been working with RMG on plans to introduce a new collective pension scheme for the benefit of our members.
Consultation on the new Royal Mail “Collective Plan”
I am pleased to advise you we have now reached the stage whereby RMG will be launching a consultation with CWU for a new Royal Mail Collective Pension Plan (to be known as the “Collective Plan” for short). This is a legal requirement for a change in pension plan and as part of this process, they will write to our members with information about the proposed change and give them an opportunity to provide feedback and ask questions.
The formal consultation launches on Tuesday 21stSeptember and closes on Sunday 21st November. Consultation packs will soon start to land on our members’ doormats.
The following Tripartite Statement has been agreed between CWU, Unite and RMG:
‘Together, we have worked hard over the last few years to design an exciting new pension plan for our people and, with consultation underway, we are pleased to see the Royal Mail Collective Pension Plan take a step closer to launch. We all believe that you will be best served by this Plan which would provide a lump sum and a wage in retirement in a way that is sustainable and affordable for the business and members.’
Mick Jeavons Terry Pullinger Gary Sassoon-Hales
RMG Chief Financial Officer CWU DGS (P) Unite CMA National Representative
Members can access information in regard to the consultation via the following RMG link:
The RMG website provides answers to important questions our members may have and also explains what happens next. In addition, there is the ability to ask specific questions directly via the website. For further assistance, a FAQ comparison table has been produced which outlines how the benefits in the Collective Plan compare to those in the RMPP and RMDCP. The table is attached to this LTB for your information.
Following the consultation, assuming a positive response, if all goes smoothly, the Collective Plan will be launched in 2022. Members who have been with RMG for more than one year would stop building up benefits in the Royal Mail Pension Plan (RMPP) and the Royal Mail Defined Contribution Plan (RMDCP) and start building them up in the Collective Plan instead. Benefits they have already built up in RMPP or RMDCP would be there for them when they retire.
In closing, the main purpose of this LTB is to signal the launch of the consultation arrangements, which is a legal process. We would anticipate further information being provided next week.
Any enquiries in relation to the content of this LTB should be addressed to the DGS(P) Department.
Acting Deputy General Secretary (Postal)