ROYAL MAIL: THE COLLECTIVE PLAN – ANNUAL BENEFIT STATEMENT & ADJUSTMENT LETTERS
Branches and members are advised that the Collective Plan has issued its first Annual Benefit Statement and adjustment letters. These will be sent via second class post from today, Monday 9th February to all scheme members who were in the Collective Plan between October 2024 and March 2025.
The Annual Benefit Statement tells Collective Plan members how much they’d built up in the Collective Plan to 31 March 2025, how much they might get from the Collective Plan at age 67, and other information the Collective Plan is legally required to send to members.
The adjustment letters inform members of the outcome of the Collective Plan’s valuations, which determine how much everyone’s income for life and lump sum are adjusted. The results of the valuations are:
- Income for life built up in the period to 31 March 2025 will increase by 6.4%on 31 March 2026
- Lump sum built up in the period to 31 March 2025 will increase by 7.6% on 31 March 2026
Scheme members should remember, everyone’s income for life is adjusted each year by the same percentage, even after you’ve retired, so that the cost of everyone’s income for life stays in balance with the value of the Collective Plan’s assets. This means your income for life can go down as well as up, both before and after you start getting your income for life.
Your lump sum is guaranteed and cannot go down, and each year the Trustee will work out if your lump sum can go up or not, and by how much if it can go up. You will see from above that this year it is going up by 7.6%.
Branches are urged to encourage members to sign up to:
- The MSS website where they can see how much has been built up so far and an indication of what they might receive at age 67 (link – https://www.securermcollectiveplan.com). Members must register for the Collective Plan’s Member Self-Service to access the Annual Benefit Statement and adjustment letter in the future as they will only be provided via the MSS from next year. Details about how to do this are included in the letter from the Collective Plan.
- Details of dependants – it is also vitally important that members provide these details via the MSS website.
Members can also sign up to the following via the Royal Mail People App
- Lump sum booster (a 1% member contribution is matched at 1% by Royal Mail) – Royal Mail – Pensions
- AVCs – If members pay AVCs into the Collective Plan, those payments will build up in a separate pot. And they’ll have different rules about how members can take them. Refer to the AVC Handbook. Royal Mail – Pensions
Conclusion
The Collective Plan has been running since 7th October 2024 and this is the first annual valuation (which will be repeated every year going forward). Clearly, this year’s outcome is very healthy and positive for our members.
Lastly, if Branches or members require further information, the attached Q&As will assist. Members can also use the various QR codes to access the relevant information on the Collective Plan website.
Any enquiries in relation to this LTB should be sent to snicholas@cwu.org or hmaughan@cwu.org
Yours sincerely,
Andy Furey
Assistant Secretary
LTB 039 RM THE COLLECTIVE PLAN – ANNUAL BENEFIT STATEMENT AND ADJUSTMENT LETTERS
CWU Eastern No5 Branch 
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