LTB 280/24 – Royal Mail: PFSL – Pension Salary Exchange (PSE) – Nest Scheme
No: 280/24
21st August 2024
Dear Colleagues,
ROYAL MAIL: PFSL – PENSION SALARY EXCHANGE (PSE) – NEST SCHEME
Branches are advised that our PFSL members in the NEST pension scheme will be receiving letters from Royal Mail shortly explaining that they are being auto-enrolled into Pensions Salary Exchange (PSE) and what the benefits are. Essentially, PSE, which is already available for other Royal Mail Pension arrangements, allows for eligible employees who pay National Insurance contributions to increase the amount of money they take home each week or month, without changing their Pensionable Pay, the overall level of contributions made to their pension or other Employer benefits they receive.
The PSE for PFSL members will be launched from 7th October and the benefits are explained fully in the comprehensive guide attached to this LTB. Members do not have to do anything – they will be automatically enrolled from 7th October. The Postal Executive has endorsed this position. There is though the ability to opt out of PSE – a form will be attached to the letter from Royal Mail and has to be returned by 13th September.
It should be noted that there are a group of members within the NEST scheme who unfortunately will not be eligible to take part in PSE as they do not earn enough per annum (for example, if they work part-time). To minimise risk, Royal Mail has set a minimum PSE participation level of £13,200 p.a. This position has been adopted to avoid negative impact upon certain state benefits and this will be explained to this group of members in a separate letter. We will keep the £13,200 p.a. figure under review with Royal Mail.
We obviously welcome the extension of PSE to our PFSL members in the NEST scheme. We have also agreed in principle, with the company (via this year’s pay negotiations) a joint communication informing members of the pensions available in PFSL. However, we remain disappointed that Royal Mail is thus far unwilling to offer the new pension scheme – The Collective Plan to our PFSL members. Our aspiration and indeed the policy of the Union remains to ensure The Collective Plan is available to all CWU members working in PFSL and we continue to pursue this with PFSL and Royal Mail.
Yours sincerely,
Andy Furey
Assistant Secretary
Mark Baulch
Assistant Secretary
Bobby Weatherall
A/Assistant Secretary
LTB 280/24 – Royal Mail – PFSL – Pension Salary Exchange (PSE) – Nest Scheme