Royal Mail uses staff brand-new specified advantage pension plan

Royal Mail has used staff a brand-new specified advantage pension plan which has been invited by among the 2 unions representing its employees, raising hopes that the postal operator will have the ability to reach an arrangement without dealing with nationwide strike action.

The company revealed in April that it would close its ₤ 7.4 bn specified advantage pension plan to future accruals from next year. But in an upgrade on Friday, Royal Mail stated it has made a brand-new deal to members that consist of the alternative of a more inexpensive replacement specified advantage plan.

Royal Mail worried that it “is among couple of business providing to change one specified advantage plan with another”, as lots of business have a hard time to honour old pension pledges.

The company stated the Unite union, which represents the company’s supervisory staff, “thinks that this is the very best offered offer for strategy members and a considerable enhancement on the company’s initial specified contribution proposal”. Unify will hold a tally to look for members’ views on the proposal.

The Communication Workers’ Union, which represents frontline employees and has been more singing about the hazard of strike action if an arrangement is not reached, might not be instantly grabbed remark.

Royal Mail determined previously this year that the yearly expenses of preserving its old specified advantage plan would triple to ₤ 1.3 bn if no modifications were made. It stated today that the brand-new proposals might be moneyed under its existing ₤ 400m yearly contributions. The company included:

Royal Mail thinks that the danger to the company of the proposed specified advantage money balance plan would be materially lower than under the present strategy and is a workable threat for us.