A central theme of the CWU’s Four Pillars & Pay campaign was to provide all of our members with dignity and security in retirement. As a result of our successful campaign, the Negotiators’ Agreement between the CWU and Royal Mail Group now provides for the introduction of a single new pension scheme for all.
The new scheme will comprise two elements: a Collective Defined Contribution (CDC) scheme, which will provide members with a wage in retirement and a Defined Benefit Cash Balance Scheme (DBCBS) which will provide a guaranteed cash lump sum at the point of retirement. For current DB members, the new scheme will target a similar level of benefits to those in the Royal Mail Pension Plan (RMPP) while current DC members will see a significant increase in their future pension benefits.
Attached below for your information is a link to a video from Hilary Salt at First Actuarial, the Union’s pension advisors, which was shown at the recent National Briefing in London. The video and the accompanying slides (below) set out the key details and benefits of the new scheme and will hopefully provide members and Representatives with a clear guide to the new arrangements. The video can be viewed using the following link:
A more detailed document will be issued to all scheme members in the coming weeks, providing detailed illustrations of what the new scheme will mean for members’ future pension benefits and will highlight the outcomes of the new scheme relative to both the former RMPP and RMDCP schemes.
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