06 July 2009
The Royal Mail pension scheme could close to existing members
after plans to part-privatise the postal service were scrapped last
week. Jane Newell, chairman of the trustees, is considering whether
the best option is to close the scheme for existing members and
offer a new, but less generous, pension arrangement.
An actuarial revaluation is expected to reveal that the scheme's
£3.4bn shortfall has risen to up to £10bn, which would almost
triple the amount Royal Mail has to contribute to the scheme.
Any decision to close the pension scheme requires the agreement
of Royal Mail's management and could prompt strike action across
the country.
