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Our members have been receiving projections about what it means to their pensions, and there has been a huge outcry. They are really, really angry. It is these future accruals that are now under threat. The companies argue that the cost of maintaining the pension schemes has become unsustainable, in part because of big increases in longevity but also because of falls in gilt and bond yields, which mean they have to pay in more to keep them financially afloat.
These gilt and bond yields have hit historic lows since Brexit , making the pension schemes even more expensive to maintain. In a statement, the Royal Mail said: 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 Such an increase in costs is not sustainable.
We are talking to our unions about the future of the plan after March But Royal Mail will face the challenge of explaining why it needs to slash its pension, when the scheme is one of the few major ones in the UK which has been running a surplus.
It says the surplus will disappear by Unions say an agreement struck in allowed the Royal Mail to keep its pension contributions at just A Post Office spokesman said the changes to the pension scheme were announced in February.
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