Looking at the Heading you probably want to turn the page quickly, but for a few moments think really hard what this subject means to you, because unfortunately that day does come around and this is from someone who knows.
Our pensions is probably one of the most important issues that we face and the current financial problems that Royal Mail are facing represents one of the most serious challenges ahead.
Way back in 2003 we were all warning of a potential threat to our member's final salary schemes. In the news recently we have all seen a further development with the threat by this Government to limit many Public Sector workers final salary pension schemes.
In 2005 a motion was put to General Conference to safeguard our pension scheme. Again, last year, a new motion was put to conference to extend the motion to include that any attempt by the employer to cease our final salary pension to existing, or future members would be at the forefront of any action called for by this Union.
According to Royal Mail's reports and accounts the pension deficit had increased in September 2006 to £6.6bn. We have since been advised at several briefings that this figure is more in the region of £3bn. It was also stated that existing Pension benefits are safe.
To deal with the growing deficit Royal Mail announced in February a six month consultation exercise, beginning in April, with the Union Trustees and Pension members to determine how best to restructure our Pension arrangements in the future. It was explained at a briefing held in Manchester on the 22nd March that this was a legal requirement anyway.
One of Royal Mail's views is to close the final salary scheme to new entrants and replace it with a defined contribution scheme.
The union has engaged an expert independent advisor, Hilary Salt, to give us a detailed analysis of the current position and our best options for the future. At present the CWU public position is to protect member's existing pension provision and all its benefits.
If Royal Mail attempt to impose inferior pension arrangements, this would trigger a ballot for industrial action across the Royal Mail group. This has been communicated to Adam Crozier.
Remember it's YOUR Pension which you should enjoy at the end of loyal service and hard work to this company.
ENJOY IT!!!
Mick Pottinger
Branch Chair
SS Area Processing Rep
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