Pensions Regulator Challenges Royal Mail Pension Plan
The Pensions Regulator is challenging a crucial plan to pay off the £10.3bn deficit in the Royal Mail pension scheme over 38 years.
The pension scheme’s trustees have struck the deal with the company.
Royal Mail says it will continue to make “substantial” extra payments to clear the deficit.
But the regulator says it has “substantial concerns about both the deficit figure and other aspects of the agreement”.
Details of the deal between the company and the trustees are being kept private for the time being.
The plan involves repaying the deficit over 38 years, more than twice as long as the current deficit repayment plan.
Deficit payments would be tiered, starting a bit above their current level but rising sharply in four or five years’ time.
“The regulator is passionately opposed to the idea,” said a source close to the scheme.
View Pensions Jobs at Simply HR Jobs.
Related posts:
