Pension update

The Pension Schemes Bill, which was announced in the Queen’s Speech in December for the second time, has started its progress through Parliament. It had its second reading in the House of Lords on Tuesday.

If passed, this Bill will enable Collective Defined Contribution (CDC) pension schemes under UK law for the first time. 

A CDC pension is a key part of the new pension scheme agreed between CWU and Royal Mail in March 2018. We have been working closely and jointly with our unions at all levels on this and will continue to do so.

Baroness Stedman-Scott (Parliamentary Under-Secretary, Department for Work and Pensions) said: ‘I put on the record our thanks for the constructive and supportive way in which both Royal Mail and the Communication Workers Union have engaged in developing these measures.

‘It is right for us to support employers and unions working together to bring about such a positive outcome.’

The Bill has to have readings in both the House of Lords and House of Commons before it can become UK law. We will keep you updated on the progress of this important legislation.   

In the meantime, if you have questions on our pension arrangements, please see our pension section on myroyalmail.com.