UK - Royal Mail is reviewing its pension scheme in a bid to cut costs and reduce a £4.6bn deficit.
The review – which is being carried out by Watson Wyatt – comes as more than 160,000 staff prepare to vote on a new pay and pensions deal.The latest offer includes a promise to plunge £100m a year into the final salary Royal Mail Pension Scheme – which is still open to new entrants – until the FRS17 deficit is cleared.
Postal ballots have been sent out by the Communication Workers’ Union and scheme members have until January 26 to cast their votes.
“We are looking at a number of changes, but we will not take any action until we have the results of the review in late summer,” a company spokeswoman said.
The deal, which the company admits is “only slightly” sweeter than its original offer in April last year, includes a 14.5% pay increase over 18 months and £300 a week minimum wage in return for 30,000 redundancies.
The CWU is encouraging workers to accept the deal.Deputy general secretary Dave Ward said: “We believe the package represents a good deal for members. It will allow necessary changes to be made across the industry with the full involvement of the union.”
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Former BHS owner Dominic Chappell has lost the appeal against his section 72 conviction and sentence for failing to hand over information to The Pensions Regulator (TPR).
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Lesley Titcomb says the watchdog wants closer interactions with pension funds to spot problems sooner and act before having to use its more stringent powers