Royal Mail to close final salary pension scheme in 2018
The company said it had reviewed consultation feedback from pension members and the Communication Workers Union (CWU), which was opposed to any move towards a defined contribution scheme.
Royal Mail, privatised in 2013, said it currently contributed £400m a year to the scheme but this could more than double to £1bn in 2018. The fund's surplus was expected to run out next year, it added.
"We know how important pension benefits are to our colleagues. We continue to work closely with our unions on a sustainable and affordable solution for the provision of future pension benefits. We will write to Plan members once further decisions have been made," Royal Mail said.
The CWU put forward a hybrid proposal that shared the risk between company and employees after Royal Mail announced in January that it want to shut the current scheme. ■
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