Royal Mail pension 'unaffordable'

Royal Mail pension 'unaffordable'

Over 90,000 Royal Mail staff have been given a warning that their final pension is 'unaffordable', and may well be closed down.

This is a worrying notion, as if it comes to be, other large companies might do the same.

Staff have been written to, and have been told that their "gold-plated" pension scheme may be shut down, thanks to the state of the financial markets, which means that after 2018, it may not be able to continue.

Now, this scheme is already closed to new staff, but two thirds of the current workforce could be affected.

They're looking at having to get a different type of pension, which doesn't necessarily guaranteed income once they've retired.

A Royal Mail spokesperson said: “We understand how much our people value their pension benefits."

"We committed to keep the Royal Mail Pension Plan open to future accrual on a career average basis for existing members without further changes, at least until March 2018."

1 comment

  • Copy

    21 years down the pan. Nice one!

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