CDC pensions update

Today, we are reporting some key developments in our lobbying campaign for CDC pensions:

-          Work and Pensions Select Committee recommends Government allows Collective Defined Contribution (CDC) pensions.

-          Government welcomes findings of the report. Says it is committed to working with Royal Mail and the CWU.

-          Royal Mail and CWU hold joint meeting with Pensions Minister and Labour Shadow Pensions Minister.

-          Labour Shadow Pensions Minister highlights support for CDC in parliamentary debate.

House of Commons Work and Pensions Select Committee Report recommends Government allows CDC pensions

In its report, the House of Commons Work and Pensions Select Committee calls on the Government to allow CDC pension schemes in the UK:

“We urge the Government to build on its initiative with the Royal Mail pension scheme to bring about the next great pensions revolution in this country and restore the UK to being among the very best pension systems in the world.”

This follows Royal Mail and CWU’s joint evidence to the Committee in February. The report praises Royal Mail and CWU’s “pioneering agreement” on CDC and our “remarkable unity of purpose in pursuing a CDC scheme for all the Company’s employees”.

Government has welcomed the findings of the report. Pensions Minister, Guy Opperman MP, said:

“We recognise the potential benefits of CDC pension schemes and welcome the findings of the Work and Pension Select Committee. We are committed to working with Royal Mail, the CWU and others so that pensions work well for both employers and their workforce.”

Further developments

Last week, Royal Mail and CWU held a joint meeting with Pensions Minister, Guy Opperman MP, and Labour Shadow Pensions Minister, Jack Dromey MP.  It was a positive meeting where we discussed the latest developments in our campaign for CDC pensions. 

Jack Dromey MP publicly highlighted his support for CDC pensions in a debate in Parliament:

“Royal Mail and the Communication Workers Union — to their great credit — have been working to form an agreement, which would be the first CDC scheme in the UK. That would forge a new and exciting pathway to a better pension for Royal Mail’s workers.”

What next?

• Government will formally respond to the Report. It will set out what action it intends to take.
• Royal Mail and CWU’s detailed work continues with the DWP on the legislative and regulatory changes needed for our CDC scheme. Detailed work also continues on scheme design.
• We want to be able to introduce a CDC scheme as soon as possible. Royal Mail and CWU remain committed to working together to make the case for CDC pensions.