POST OFFICE: DEFINED BENEFIT PENSION SCHEME (RMPP) – HISTORICAL ERRORS MADE BY POST OFFICE

POST OFFICE: DEFINED BENEFIT PENSION SCHEME (RMPP) –

HISTORICAL ERRORS MADE BY POST OFFICE

Further to LTB 223 dated 1stJune.  I would like to provide Branches and our Post Office members with an update with regards to the historic errors in the Defined Benefit Pension Scheme (Royal Mail Pension Plan – RMPP) which closed in March 2017.  It should be noted there is no impact on the Defined Contribution pension scheme administered by Scottish Widows.

Background

As previously reported, Post Office historically (over a number of years) provided some incorrect pay information to the Pensions Service Centre (PSC) where the pension scheme is administered.  This is obviously very unfortunate; however, Post Office and the RMPP Trustee gave a commitment that ultimately nobody will receive a pension less than they are entitled to.  After the errors were uncovered, an action plan was put in place by Post Office to fully understand these mistakes and provide the correct information to the Trustee to rectify accordingly.

Communications to Post Office RMPP Members

Members received an initial communication (via a One Update) from Angela Williams, Interim Group Chief People Officer, a RMPP Trustee communication (to home addresses) and a Joint CWU/Unite letter back in June.  The Post Office communication committed to addressing these problems in conjunction with the Trustee.

In the intervening time, further analysis has been undertaken by Post Office in order to provide accurate data to the Trustee and Post Office has recently confirmed this has now been completed.  The salary data has also been independently reviewed by Post Office’s external advisers.  This data has now been provided to the PSC who will need to run it through the pension administration system in order to determine what the effect is on each member’s benefits on an individual basis.

To keep members apprised of these developments, a further communication via a One Update, again from Angela Williams (attached) has been emailed to members today.  There will also be a communication to home addresses shortly from the Trustee which will include details regarding the timetable they are working through to complete the review.

Contact for Queries

If members have an urgent requirement for corrected pension numbers, for example those members going through divorces or those who have pensions that are just about to come into payment, they should contact the RMPP Trustee on 0345 603 0043 or via email – Pensions.helpline@royalmail.com.

Our View is Post Office Should Pay for its Mistakes

Post Office has obviously picked up the admin costs associated with extra resource required to make good its failings thus far.  In pursuance of our policy to ensure no member is disadvantaged, we will continue to meet with both Post Office and the Trustee on a regular basis to understand the total costs involved as the ongoing activities progress.  Further developments in this regard will be reported.

Crucially, both CWU and Unite have made it clear to Post Office from the outset that our members should not be paying for any costs associated with these historical errors, and this includes not using the “surplus” to subsidise the cost of making good.

If Branches receive enquires from Post Office members in relation to this LTB, please redirect these to lsheridan@cwu.org

Yours sincerely

Andy Furey

Assistant Secretary

LTB 427/21 – Post Office – Defined Benefit Pension Scheme (RMPP) – Historical Errors Made By Post Office

Attachment to LTB 427/21

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