16 July, 2017
Royal Mail has proposed a new pensions deal comprising defined benefit (DB) and defined contribution (DC) options for members following the planned closure of its current defined benefit (DB) pension scheme to future accrual in 2018.
"It does not meet our aspiration of a wage in retirement pension scheme, but rather still promotes the conventional wisdom of a cash-out arrangement at the point of retirement", CWU Deputy General Secretary of Postal Terry Pullinger said.
The new schemes would be effective from 1 April 2018.
It said it had held "extensive talks" with both unions - Unite, which represents the firm's managerial staff, as well as the Communication Workers Union, which represents frontline workers. It is offering the 90,000 members of its defined-benefit scheme either a so-called cash balance scheme that would a...
Unite, which represents 6,000 management-level staff will hold a "consultative ballot" on twin-tier proposals, Royal Mail said.
It declared that it would not be recommending the offer to its members.
The union's Brian Scott said: "The latest position is an improvement from the original proposal, and through our discussions we have achieved these improvements".
"Royal Mail has also offered this improved proposal to the CWU, making it available to all Plan members".
A defined benefit plan pays out an amount according to workers' final salary and length of service.
"One of the main developments is that we will keep the defined benefit pension scheme open and the lump sum approach being put forward will become a separate section of that scheme".
A "buy" rating was maintained on ITV's shares - which are also liked for their M&A potential - but the target price was shaved nearly 4% to 228p, from 237p, which from the opening price of 177.5p on Friday, still offers plenty of upside.