Jump to content
House Price Crash Forum
Sign in to follow this  
interestrateripoff

Royal Mail’s Pension Scheme Could Be Closed

Recommended Posts

http://business.timesonline.co.uk/tol/busi...icle6644543.ece

The chairman of Royal Mail’s pension trustees is considering plans to close its retirement scheme to existing members after legislation to part-privatise the postal service was shelved last week.

It is understood that Jane Newell is mulling over whether the best option for postal workers is to close the pension scheme and force members to join a new retirement pot with far less lucrative benefits. As chairman of the trustees, Ms Newell has the power to shut the scheme but any decision would also be dependent on the agreement of Royal Mail’s management.

It is feared that such a move would trigger strike action across the country as heavily unionised postal workers opposed the future loss of generous final-salary pension benefits.

Lord Mandelson, the Business Secretary, told the House of Lords last week that proposed legislation to reform Royal Mail by selling a 30 per cent stake in it had been shelved. Had he been able to attract £3 billion for the stake and convince the 140 backbench Labour MPs who oppose the move, the Government would have taken responsibility for the Royal Mail pension pot.

The pension scheme has a deficit of £3.4 billion and a revaluation now under way is expected to show a deficit of up to £10 billion. Such a shortfall would almost triple the sum that Royal Mail would have to contribute to the fund and plunge the postal service deeper into the red.

The trustees are furious with the Government and Royal Mail for failing to secure legislation that would have reformed the postal group. It is understood that they are seeking meetings with Royal Mail management to discuss how best to cope with the pension deficit.

Donald Brydon, Royal Mail’s chairman, indicated last month that he was ready to close the group’s final-salary pension scheme if the Government failed to partly privatise the postal group. He said: “If we don’t get this relief from the Government, we are going to have to look at . . . closing the pension scheme to existing members.â€

Effectively, reform of Royal Mail has now been delayed until after the next general election. However, it is feared that by the time the next administration begins to grapple with Royal Mail’s future, the postal operator’s pension deficit will have ballooned to £10 billion and the group will have lost even more business. Volumes are declining by 10 per cent annually.

A spokesman for the pension trustees declined to comment on Ms Newell’s plans to close the scheme. Lord Mandelson said on Friday he was unaware of such proposals and Royal Mail was unavailable for comment.

The full ire of Royal Mail’s unions will be felt this week when postal workers across London begin a three-day strike, threatening to disrupt post for at least a week. It is widely feared that the Communication Workers Union, which represents postal workers, and Unite, the union whose members include mail managers, will call for walkouts over any substantive change to pension arrangements. Royal Mail’s pension scheme has about 450,000 members and payouts are calculated according to career average pay.

Yet another pension crisis, as I said at the start of the year the pension crisis would be revealed to the public.

The pension system is a fraud and is completely unsustainable.

Share this post


Link to post
Share on other sites

Quite right and as nation we cannot afford the public service pensions bills we are building up the laibility is far more as a proportion of gdp than any other nation and is only going to get worse and worse...... the only way through this in my view is for the govt to stop MP's final salary pensions and only then will they have the authority to then drive through a similar change to public sector jobs.

Come it will though... we simply cannot continue as we are as its frankly unsustainable.

Share this post


Link to post
Share on other sites
True. The scheme must close to any form of new entitlement of course, there is no option.

The problem isn't "new entitlement" it's 40 years of "old entitlement" which is completely unfunded.

Share this post


Link to post
Share on other sites

Unfortunately this kind of thing is going to start the new poll tax type riots, people are still angry about expenses and banks troughing our money.

This will simply tip many into out and out hate, people will tolerate alot but when you tell them they are the ones to take the brunt of cutbacks and reorganisationon on a massive scale then trouble will ensue.

Who could blame them though? the banks and car companies get billions in public money, fat cats still get their huge pensions, mp's still get their huge pensions, and the average joe gets shafted....again!

These people forget that you don't be a postie for the pay or hours( they are sh1te), you do it because you are guaranteed a decent pension-or at least you were!

I'm not a postie by the way.....I just feel for them and the others who are in for a big "feck you!"

Share this post


Link to post
Share on other sites
The problem isn't "new entitlement" it's 40 years of "old entitlement" which is completely unfunded.

Newcomers to public jobs market will find themselves on the same pegging as the rest of the population - having to work longer, harder and for less overall remuneration to pay for the pay, conditions and benefits of their predecessors. Not good.

Share this post


Link to post
Share on other sites
Newcomers to public jobs market will find themselves on the same pegging as the rest of the population - having to work longer, harder and for less overall remuneration to pay for the pay, conditions and benefits of their predecessors. Not good.

I don't understand why this is "not good"... surely anything that cuts the cost of public service provision is good news.

Share this post


Link to post
Share on other sites
It is feared that such a move would trigger strike action across the country...

If it does, that'll be their Scargill moment. In the same way that the miners found out the hard way that stockpiling and the emergence of other energy sources (chiefly coal and nuclear) meant that coal was now not such a strategically vital resource and that they could no longer bring the country to a halt by striking, so will the postmen discover that electronic communications have rendered the Royal Mail surplus to requirement for everything except delivering tat bought on Ebay; and plenty of other couriers will deliver that. The remaining minority of the population who still aren't paying bills and doing other essential household business online will be prompted to do so in the event of another major postal strike, and the majority of postmen probably won't have a job to come back to.

Edited by The Ayatollah Bugheri

Share this post


Link to post
Share on other sites
These people forget that you don't be a postie for the pay or hours( they are sh1te), you do it because you are guaranteed a decent pension-or at least you were!

I'm not a postie by the way.....I just feel for them and the others who are in for a big "feck you!"

This is a fair point and I feel for them too. Many others are going to be in for a similar experience. The wisdom of making life-plans on the assumption that a particular entity will still be around and able to meet its obligations several decades down the line has always been questionable.

The thing is, people are indoctrinated into it: "whatever you do, make sure you have a good pension". Not much different from "you have to get on the property ladder" IMO.

Share this post


Link to post
Share on other sites

What a shame that those that have paid a percentage of their income into a pension scheme are considered as a burden.

You would think that the those that have made no provision for their future would be the numpties.

Share this post


Link to post
Share on other sites

It puzzles me why many on here appear to wish to see their fellow Brits (mostly) suffer rather than address the root cause of the problem which by and large is the wholesale offshoring of the private sector to Chindia where labour is cheap, working conditions are sh1te, health and safety legislation largely non-existent, and much of the environment terribly polluted.

Sure, the public sector must cut its cloth and Gordon has been living in a dream world for this decade, but I'm not sure competing ourselves to death, ridding ourselves of pensions, lowering living standards and working longer is much of a solution for any of us.

It may bring short-term satisfaction but divide and conquer hurts us all ultimately.

Share this post


Link to post
Share on other sites
It puzzles me why many on here appear to wish to see their fellow Brits (mostly) suffer rather than address the root cause of the problem which by and large is the wholesale offshoring of the private sector to Chindia where labour is cheap, working conditions are sh1te, health and safety legislation largely non-existent, and much of the environment terribly polluted.

Sure, the public sector must cut its cloth and Gordon has been living in a dream world for this decade, but I'm not sure competing ourselves to death, ridding ourselves of pensions, lowering living standards and working longer is much of a solution for any of us.

It may bring short-term satisfaction but divide and conquer hurts us all ultimately.

Surely off shoring has nothing to do with the postal problem.

Gordon has to do much much more than simply get the public sector to "cut its cloth"... there needs to be a sustainable 20% drop in total expenditure and thats going to hurt.

I hear what you say about not doing ourselves down ... but this is exactly what labour has already done.. they have taken vast sums away from private pensions and wasted them.. those are now gone... and they have through bloating the public sector put us in a postion where our public sector pensions liabilities vs GDP are the worst by a long chalk than any other developed country...... they are simply unaffordable.... the debate I fear has moved away from whats the right thing to do or the honourable thing to do etc... and its come down to a very short list of relatively unpalletable measures which could be used to help solve the situation.... we have no choice, absolutely no choice but to use some or all of these... and amongst them you will find 100,000's of public sector redunancies, slashing of public sector pension entitlements, cutting of planned development programmes, erradicatio of quangos and a root and branch reform of the welfare system making it far less generous and focussed much more on alieviating genuine shorter term issues than providing long term income for whole sections of society.

Share this post


Link to post
Share on other sites
It puzzles me why many on here appear to wish to see their fellow Brits (mostly) suffer rather than address the root cause of the problem which by and large is the wholesale offshoring of the private sector to Chindia where labour is cheap, working conditions are sh1te, health and safety legislation largely non-existent, and much of the environment terribly polluted.

Sure, the public sector must cut its cloth and Gordon has been living in a dream world for this decade, but I'm not sure competing ourselves to death, ridding ourselves of pensions, lowering living standards and working longer is much of a solution for any of us.

It may bring short-term satisfaction but divide and conquer hurts us all ultimately.

Agree on nearly all of this although only the top end of public sector needs reigning in on the wages as you really couldn't cut the lower deck down at all as they are barely breaking even. If the posties were promised a decent pension then it should be honoured or increase their wages so that they can put something by.

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • The Prime Minister stated that there were three Brexit options available to the UK:   292 members have voted

    1. 1. Which of the Prime Minister's options would you choose?


      • Leave with the negotiated deal
      • Remain
      • Leave with no deal

    Please sign in or register to vote in this poll. View topic


×

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.