RSS   Newsletter   Contact   Advertise with us
Post Online Media
Britain   Royal Mail was privatised in 2013

Royal Mail to close final salary pension scheme in 2018

Royal MailRoyal Mail put itself on a collision course with the unions as it announced the closure of the company's final salary pension scheme next March, claiming there was "no affordable solution to keeping the plan open in its current form".

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.

Article continues below

READ MORE Royal Mail offered to raise its contribution to retirement accounts

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.

What to read next

More inside POST

We use cookies to ensure that we give you the best experience on our website. Please allow cookies for fully-functioning website.

Allow Cookies Privacy Policy