Royal Mail pensions 'could be cut in half'

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Members of the Royal Mail Pension Fund could see their benefits slashed by 50% if plans to privatise part of the company are not pursued, the trustees warn.

Trustee chairman Jane Newell has written to business secretary Lord Mandelson urging the government to press ahead with legislation which would allow part of the company to be sold off to a private buyer. She said the 450,000 member scheme already has a significant deficit - in excess of the £5.9bn estimate used in the government's Hooper review, which investigated options for Royal Mail's future. Newell warned ignoring the recommendations of the report - released in December last year - could have "potentially devastating consequences". Newell said the plan's resources would not cove...

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