Escrow

MrFlick

 I have received notice that my company is going to pay me a bit over 1000 pounds from a escrow pension fund. Not sure what this is or how it is legal to have me get paid this as i am under 55, I never heard that this was separate from my normal pension with the company. Should they have told me about is eg how much and when it started. Ok they are paying me money now but if circumstances were different i am pretty much sure i would not ever have received it. What are rules relating to such a bond/deed?

xylophone

Anything to do with this?

https://www.pensionsage.com/pa/Royal-Mail-pension-plan-agrees-to-early-release-of-scheme-escrow.php

MrFlick

yes indeed it is but my issues are where is it held and why only told about it now? Would i or other employees have got money if circumstances are different

flaneurs_lobster

I would have thought that your CWU rep would be a good person to ask about this.

dunstonh

MrFlick said:

yes indeed it is but my issues are where is it held and why only told about it now? Would i or other employees have got money if circumstances are different

This information is published and you have been notified.   The link given above also explains it.

MrFlick

The CWU Rep has no idea. As for the information being published yes only recently but where was the notice prior to this. It seems that the  pension people have only answered after the end of the strike where it was agreed upon but i cannot see it in 2017 when it supposedly started

ewaste

Google seems to suggest it's been around since before privatisation as essentially earmarked funds toward the pension deficits albeit without actually contributing the funds into the scheme. Now that the Pension funding situation has improved some funds that were earmarked, held in escrow, have been released. Naturally rather than use it all for future pension use some of it is being doled out to current employees.

https://publications.parliament.uk/pa/cm200607/cmselect/cmtrdind/1089/7102206.htm

If the pension funding situation hadn't improved the funds held in escrow would have been utilised to reduce the deficit. 

dunstonh

The CWU Rep has no idea.

That tells you what you need to know about the quality of your rep.  The CWU have it on their website:
https://www.cwu.org/pensions-statement

A quick google search shows up documentation from the time and since.   The 2018 pension report given to members mentions the Escrow.     However, like any glossy material that is sent out, it does rely on the person to read it and not immediately think "I am not interested in this" and junk it thinking it isn't important or is marketing.

it also appears on the front page of the Royal Mail Pension PLan website dated 17th June 2023.

MrFlick

ok thanks. I am sorry that i read about the pension and must have missed the escrow element part as i am not a financial guru. This is the first time i had heard of the word Escrow and i am still misunderstanding as the need for a separate bond/deed/ to the plan which the majority of the members would expect one plan to join and not separate ones.Even if had read the escrow part i would still of thought it was part of the scheme that i was putting money into and not a completely different one.

Marcon

MrFlick said:

ok thanks. I am sorry that i read about the pension and must have missed the escrow element part as i am not a financial guru. This is the first time i had heard of the word Escrow and i am still misunderstanding as the need for a separate bond/deed/ to the plan which the majority of the members would expect one plan to join and not separate ones.Even if had read the escrow part i would still of thought it was part of the scheme that i was putting money into and not a completely different one.

Pensions come with enough jargon of their own, never mind adding a variant like this. Guaranteed to make the eyes glaze over...

I think the answer you really need is 'nothing underhand has happened and nothing unlawful is going on' - and perhaps don't worry beyond that!