Royal Mail pension transfer

majorwally

In todays budget the Chancellor confirmed that the Royal Mail Pension fund would be transferred to government.

He then stated that the fund will be used to pay debts.

I have searched online and apparently the fund is worth £28 Billion.

How can a fund that is worth £28b be a problem for Royal Mail privatisation?

Can anyone shed some light on what is happening with this fund?

molerat

The liabilities of the pension are £37.5 bn with assets of only £28 bn so anyone taking over RM complete with pension would have to find an extra £9.5 bn. The fund will just go into government coffers and the government will pay out to pensioners just as they do to any other retired public sector workers.

dunstonh

molerat wrote: »

The liabilities of the pension are £37.5 bn with assets of only £28 bn so anyone taking over RM complete with pension would have to find an extra £9.5 bn. The fund will just go into government coffers and the government will pay out to pensioners just as they do to any other retired public sector workers.

...and the latest Budget announcement is that the Govt will employ MI5 to take out retired posties if they havent passed away by age 70 as it is fiscally prudent to do so.

RichandJ

dunstonh wrote: »

...and the latest Budget announcement is that the Govt will employ MI5 to take out retired posties if they havent passed away by age 70 as it is fiscally prudent to do so.

Five don't carry out wet jobs old boy, dontcherknow. Outsource that to the rough chaps from elsewhere. If anyone says I said Hereford or the successor to 14 Int Det I'll accuse them of libel.

ffacoffipawb

dunstonh wrote: »

...and the latest Budget announcement is that the Govt will employ MI5 to take out retired posties if they havent passed away by age 70 as it is fiscally prudent to do so.

Fortunately, the instructions were sent by post, so have probably got lost somewhere in Outer Mongolia by now.

majorwally

molerat wrote: »

The liabilities of the pension are £37.5 bn with assets of only £28 bn so anyone taking over RM complete with pension would have to find an extra £9.5 bn. The fund will just go into government coffers and the government will pay out to pensioners just as they do to any other retired public sector workers.

OK, so how are the liability's worked out?
I read somewhere that it's worked out by saying if every royal mail worker retired today then it's liability would be £££££ but of course, that's not going to happen as such is it?

molerat

At some stage all of the members will retire and there simply not enough money in the pot to pay the pensions. I do not believe the figures are an exact science but are an accountants "best guess" taking different scenarios into considerstion.

Susan-Pringle

I`ved been offered to cash my Royal Mail Pension in Now which would give me £13871 Lump Sum and Drip feed £2080 per year. Should I take this now or wait till Actual Retirement age in September 2014. Royal Mail Can`t tell me what i`ll get in 2014. Does anyone have any idea what i would likely get if left till 2014? I Currently Pay 6% in and Royal Mail Pay 9%

mark55man

Susan - I would start a separate thread up. Also in your question be clear what you mean by cash in, ie do you mean take the benefits early or do you mean something else