LTB 329/24 - Royal Mail: Pensions – The Collective Plan Successfully Launched
No: 329/24
Dear Colleagues,
Royal Mail: Pensions – The Collective Plan Successfully Launched
Further to LTB 324/24 dated 3rd October. The Collective Plan was successfully launched on Monday 7th October and all payroll processes are in place to reflect the 6% employee contribution.
Branches and Representatives are advised that pensionable pay is different in the Collective Plan to the previous schemes.
This will have a relatively minor impact on the amount of money associated with pension contributions and in turn this will have a small impact on take-home pay for most people.
In the Collective Plan, more elements of pay are pensionable, so most members in some circumstances will see an increase in their Pensionable Pay. This means members impacted will see a small increase in their contributions, and a small decrease in their take-home pay after tax relief. However, crucially, Royal Mail’s contribution and the benefit members receive from the Collective Plan are also based on this new, higher, Pensionable Pay. This is explained further in the attached slides produced by Royal Mail.
Branches are urged to refer to these slides when receiving enquiries from members about changes to their take-home pay.
those who joined Royal Mail after 2008 and were in the RMDCP
those who joined Royal Mail before 1987, were in Section B of RMPP and contributed to DBCB
those who joined Royal Mail between 1987 – 2008, were in Section C of RMPP and contributed to DBCB
those who joined Royal Mail between 2008 – 2024, were in Section F of RMPP and contributed to DBCB
Branches and Representatives may also receive enquires from members as to why their AVCs have not been taken from payroll this week.
The explanation for this is that the member hasn’t instructed Royal Mail to start a fresh AVC as part of the Collective Plan, which is the requirement of the Trustees.
Essentially, as previously advised, AVCs linked to former schemes have now ceased and new AVCs will have to be set up (this can be done via the People App).
Please ask members to visit the Royal Mail Collective Plan website for further information and FAQs:
Yours sincerely,
Martin Walsh
Deputy General Secretary (Postal)
Andy Furey
Assistant Secretary
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