Royal Mail closes DB pension scheme after union negotiations

Introduces UK's first CDC scheme

clock • 3 min read

Royal Mail and the Communication Workers Union (CWU) have agreed in principle to work towards introducing a collective defined contribution (CDC) scheme for all employees.

According to a statement on the London Stock Exchange today, the agreement which will be voted on by the union's members also includes closing the defined benefit (DB) scheme to future accrual. It follows a two-day meeting this week by the union's postal executive committee to make a final decision on the proposed agreement. However, introducing a CDC scheme will be subject to necessary legislative changes, and transitional pension arrangements will be put in place from 1 April until such a scheme can be set up. A DB cash balance scheme will sit alongside it, and the ongoing annual...

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