Royal Mail may axe final salary pension scheme

Royal Mail is braced for strike action as it proposes to axe its final salary pension scheme for existing as well as new employees, according to a trade union.
Union Unite, which represents 12,000 Royal Mail managers, said that it expects the postal company to unveil plans to close the scheme to new and existing staff, and to take away GBP 1.5 billion of benefits. Unite said that in a meeting today Royal Mail confirmed the plans to the union.
A spokesman for Royal Mail refused to comment on the details of the proposals, saying: “It’s something we want to talk to our staff about first before giving a steer outside the company.”
Royal Mail is expected to inform employees of the proposed changes this week. Unite, which referred to the plans as the “great mail robbery” is involved in ongoing talks with the postal company.
Unite said that plans included raising the retirement age from 60 to 65, and from April 1 2008 replacing the final salary pension scheme for existing staff with a career average scheme.
Paul Reuter, national officer at the Union, said: “We call upon Royal Mail to honor their commitment to preserve the past services benefits that have been built up and paid for by our members.
Royal Mail is already facing two 48-hour walk-outs next month by members of the Communication Workers Union, over pension changes and pay.