Royal Mail considers union’s pitch for ‘new kind’ of pension

Royal Mail is considering a proposal from a trade union for what it says is a new kind of pension arrangement that would share some financial risks between workers and employer. The CWU's plan would encompass the 90,000 members of Royal Mail's DB scheme, as well as some 40,000 people who pay into a DC scheme, to end what it called a "Two-tier" system. While pensions minister, Sir Steve introduced legislation in 2015 to allow schemes to pool risk between members, or employers to share pension risk with employees. Solving the pension question amicably is important for Royal Mail. Royal Mail currently pays about £400m cash into the DB scheme each year, but projects that will rise to more than £1bn after March 2018.

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