LTB 127/18 – Royal Mail Pensions
No. 127/18
1st March 2018
Dear Colleague,
Royal Mail Pensions
This week members will have received a Pension Booklet from the business explaining the changes to Royal Mail pensions following the Agreement reached with the CWU.
The Booklet provides some detailed illustrations and typical examples for current members of the Royal Mail Pension Plan (RMPP) and the Royal Mail Defined Contribution Plan (RMDCP). To provide clarification following enquiries from members, we set out the options below:
• All current members of the RMPP will start building up benefits in the transitional Defined Benefit Cash Balance Scheme (DBCBS) from 1st April 2018. This will happen automatically from this date. No action is required by RMPP members.
• All current members of the RMDCP with at least 5 years’ service in the scheme have the option of a) joining the DBCBS Scheme from 1st April 2018 or b) going to the improved top tier of the RMDCP Scheme. If you wish to exercise these options you need to compete and return the appropriate form to Royal Mail.
• All RMDCP members with less than 5 years’ service will automatically be moved to the improved top tier of the DC Scheme on the 1st April 2018. (where employees will pay 6% contribution and the company 10%). Members can choose to contribute less if they wish to.
Any enquiries in relation to this LTB should be addressed to the DGS(P) Department quoting reference 24111a.
Yours sincerely,
Terry Pullinger
Deputy General Secretary (Postal)