28 May 2020
myroyalmail is updated daily

Frequently asked questions

Q             Will there be any change to my terms and conditions of employment?

A             Yes. Taking part in PSE is a change to your contractual terms and conditions because your entitlement to your basic pay is reduced by the amount you normally contribute to you pension plan. Instead, we pay an increased employer contribution, so the amount paid into your pension stays the same. If you do not opt out of PSE, you will be treated as having accepted the change to your contractual terms and conditions which will take effect from the date you join PSE.


Q             What happens if I leave my pension plan?

A             If you leave your pension plan, PSE will stop automatically.


Q             My pay fluctuates each week/month – how will I know if I’m participating in PSE or not?

A             Unless you choose to opt out you will continue to participate in PSE at all times. A PSE adjustment will show on the left-hand side of your payslip. This is unless the PSE adjustment and/or any other salary exchange arrangements that you may have, for example childcare vouchers, reduce your post-PSE pay  (see jargon buster), below the National Minimum Wage or the  PSE participation limit of £10,000 (around £192 per week or £833 per month). If this happens, pension contributions will be taken from your pay as they are currently for that pay period. 


Q             Will PSE affect Child Care Voucher payments? 

A             No.


Q             Will PSE affect cycle to work payments? 

A             No.


Q             If I participate in PSE will the contributions to my Royal Mail pension reduce?

A             No - the total amount Royal Mail pays to your pension is based on your pensionable pay before the PSE adjustment is made. Because there is no change to pensionable pay this means there is no change to the amount which is contributed to your Royal Mail pension.


Q             If I participate in PSE will my pensionable pay reduce?

A             No – pensionable pay does not change as a result of PSE.