Royal Mail Group Limited (RMG) started consulting in early September 2009 on a proposal to close the RSP. This proposal involved a formal consultation with RSP contributing members, RMG employees who are not currently members of any RMG pension plan and the relevant unions (CWU and Unite/CMA). As part of the consultation process, contributing RSP members were written to individually with a letter setting out RMG’s proposal to close the RSP and giving them information about joining the DC Plan. The formal consultation process ran from 7 September 2009 to 6 November 2009 inclusive. During the consultation period, RMG received very little feedback and no criticism of the proposal to close the RSP. Following the consultation, having considered all the comments and feedback received, RMG took the decision to close the RSP from 31 December 2009.
Following the decision to close the RSP, members will not be able to contribute to the RSP after 31 December 2009 and RMG will also stop contributing to the RSP on their behalf after 31 December 2009. Up to 31 December 2009, contributing members of the RSP can make contributions at 2% of pensionable pay into the RSP with RMG also contributing 2%. Under the RSP, members are also covered for a death in service lump sum benefit of two times basic salary.
Members of RSP still contributing to the RSP after the consultation and the resulting decision to close the RSP have the following options:
OR
IMPORTANT: if you are still a contributing member of RSP in December 2009, you are still able to join the DC Plan after December 2009 until you reach age 64 (the upper age limit for joining the DC Plan) and provided that you have completed 1 year’s service with RMG. If you are over age 64, then your last opportunity to join the DC Plan is before 1 January 2010. This is because the normal eligibility conditions for joining the DC Plan have been relaxed for RSP members over age 64 but only for the period up to 31 December 2009. If you are over age 64 and wish to join the DC Plan then you must complete an Application Form and it must have reached the Zurich Royal Mail Service Team by close of business on Thursday 31 December 2009.
If Zurich receive an Application Form after 31 December 2009 then, if you are under age 64 (and provided you have completed 1 year’s service with RMG) you will join the DC Plan from the next applicable pay date. If you are over age 64 and your Application Form does not reach the Zurich Royal Mail Service Team by close of business on Thursday 31 December 2009 you will no longer be allowed to join the DC Plan and, as a consequence, you will no longer build up pension benefits in a RMG pension plan.
After 31 December 2009, you will only be able to join the DC Plan if you are in RMG employment, have not yet reached your 64th birthday and have completed 1 year’s service with RMG.
If you have not joined the DC Plan by 31 December 2009, and are in RMG employment, you will still be covered for a death in service lump sum benefit of two times basic salary under the Royal Mail Group Life Assurance Scheme. If you do not wish to join the DC Plan, please fill in an Expression of Wish form and return it to the address stated on the form.
Under the DC Plan you would automatically be covered for a death in service lump sum benefit of four times basic salary (and a further two times basic salary if you have dependants). PLEASE NOTE: If you are eligible and choose to join the DC Plan after 31 December 2009 (until age 64) you may have to provide evidence of good health before you will be covered.
| Name of pension plan | Member pays (% of pensionable pay) | Royal Mail Group pays (% of pensionable pay) | Total invested in member’s pension account |
|---|---|---|---|
| RSP | 2% | + 2% | = 4% |
| DC Plan (three options of contribution levels) | 3% 4% 5% | + 5% + 6% + 7% | = 8% = 10% = 12% |
Royal Mail Group is not able to offer financial advice. Please read the information that is available on the RSP consultation website and in the letter that has been sent to all contributing RSP members in early September 2009. If you are not sure what you should do, please consider contacting an Independent Financial Adviser (IFA). You can obtain details of IFAs by getting in touch with IFA Promotions Limited, whose details are:
Web: www.unbiased.co.uk
or address:
IFA Promotions
2nd Floor
117 Farringdon Road
London
EC1R 3BX
The RSP Consultation Helpline will continue to answer your questions until 28 February 2010. Please contact:
or use the RMRSP consultation website to find out more:
From 1 March 2010, all enquiries should be directed to the RSP administrators, Aon Consulting (‘Aon’) at the following addresses
E-mail: royalmail@aonconsulting.co.uk
Phone: 0114 241 4545. (Postline network users can call 5456 4545)
Post: Royal Mail Retirement Savings Plan
C/O Aon Consulting
131 St Vincent Street
GLASGOW
G2 5JF
Please quote your full name, date of birth and either your National Insurance number or RSP number in any correspondence or phone call.
