Royal Mail to shut down pensions : Morning Star

STRIKE ACTION could hit Royal Mail after the company announced plans yesterday to close its defined benefit pension scheme next year.

Posties’ union CWU warned that any attempt by the privatised postal services provider to impose change without agreement will be met with the “strongest possible opposition,” including industrial action.

Royal Mail said the pension plan was currently in surplus, but it expected this to run out in 2018.

The company’s annual pension contributions are currently around £400 million, but it warned that, if no changes are made, they could more than double to over £1 billion in 2018.

As a result, the company will close the plan on March 31 2018, subject to trustee approval.

The CWU said that, in place of the current defined benefit scheme, Royal Mail plans to put all members into inferior money purchase alternatives. On average, employees face losing up to a third of their future pensions, the union added.

CWU acting deputy general secretary Ray Ellis said: “Although Royal Mail’s own consultation exercise revealed massive opposition to its closure plan, the company has decided to ignore the views of its workforce and proceed with closure without consent.

READ MORE : MORNING STAR

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