5. Who would join the Collective Plan?

This table shows you who would join the Collective Plan – and when

Could I keep saving into my current plan?

Members of RMDCP who had been with Royal Mail for less than a year would be able to keep saving in that plan until they reached a year’s service. No one else would be able to save into RMDCP and no one would be able to save into RMPP.

What would happen if I didn’t want to join the Collective Plan?

No one would have to join. If you chose not to and you were due to be automatically enrolled into a pension, you’d be enrolled into Nest.

Nest is the workplace pension scheme set up by the government

It offers low charges and, we believe, good investment options. It’s also a public body. This means it has no owners or shareholders, and is accountable to Parliament through the Department for Work and Pensions. You can find out more at nestpensions.org.uk

Contribution rates in Nest would be lower than in the Collective Plan:

  • In the Collective Plan, you pay in 6% of Pensionable Pay and Royal Mail pays in 13.6%.
  • In Nest, you pay in 5% of basic pay and Royal Mail pays in 3%. You can pay in more if you want to, but Royal Mail’s contribution is fixed at 3%.

Frequently asked questons

Royal Mail and the unions agree that the Collective Plan should replace RMPP and RMDCP. There are 2 reasons for this:

We think the Collective Plan is fairer than the current plans

At the moment, Royal Mail pays in more for members of RMPP than RMDCP. With the Collective Plan, everyone builds up benefits the same way, with Royal Mail paying the same rate for every member.

We think the Collective Plan is simpler for members

The Collective Plan offers both an income for life and a cash lump sum, unlike RMDCP and the Cash Balance section of RMPP. This means that the Collective Plan takes away the need to make complicated decisions about how to use savings and make them last.