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.”
The secretary of state for work and pensions has told MPs clawback and avoidance measures could be imposed for the people responsible for driving Carillion over the cliff.
Occupational pension provision has continued to grow in value, but there remains large variance in incomes across the pensioner age group, according to latest government data.
Defined benefit (DB) schemes could have an aggregate surplus by 2021 under Pension Protection Fund (PPF) projections, its strategic plan for 2018 to 2021 reveals.
Investment consultants are failing to recommend products that outperform net of fees, the Competition and Markets Authority (CMA) has said as its investigation into the market continues.