Royal Mail Pension Scheme
The Royal Mail Pension Scheme is a major component of the retirement benefits offered to employees of Royal Mail Group, which is responsible for postal service in the UK. Historically, it operated as a defined benefit scheme, providing members with a guaranteed pension based on their final salary and length of service. However, due to the financial challenges associated with maintaining a defined benefit scheme, Royal Mail introduced significant changes. In 2018, the scheme was closed to future accruals, and a new arrangement was launched that combines elements of both defined benefit and defined contribution plans, known as the Collective Defined Contribution (CDC) pension scheme. This innovative scheme aims to provide a target or “ambition” level of benefits, balancing risk and reward between the employer and employees, and is designed to be more sustainable while still offering substantial retirement benefits. The scheme is one of the first of its kind in the UK and represents a new approach to pension provision, reflecting a commitment to adapting to economic conditions while continuing to support the retirement needs of Royal Mail employees.
Have you transferred funds out of the Royal Mail Pension Scheme?
Depending on when you started work, you were put into one of three pensions. The first one started in 1987, the second up until 31 March 2018, and the final one from 1 April 2018. The earlier pensions that had been issued to workers at Royal Mail may be a defined benefit scheme that is highly valuable considering the benefits they offer. One of these is a guaranteed income during retirement which is directly linked with inflation and is awarded right up until death.
These types of pensions are seen as being highly valuable and have been targeted by unscrupulous financial advisors and marketing companies hoping to persuade them to transfer to a personal pension in order to earn a large commission. In some very rare instances, it may be suitable to transfer the Royal Mail Scheme to another type of pension, however, it is important to be aware of the risks that come with this. The only people who benefit from a pension transfer like this are the marketing companies and scammers who make a tidy profit, whilst the worker could be left in financial ruin.
Lots of Royal Mail workers were not aware that the pension they had was so attractive to financial advisors and so they believed the negligent advice they were given. This is something we regularly come across with our clients. Don’t worry though as we can help.
Simply call us today and speak with one of our experts. They will be able to advise you on how best to seek the compensation that you are entitled to. This is a free service and there is no obligation to proceed with us. If you do, know that our fees are reasonable in comparison to other solicitors and that they only need paying once you have received all the financial compensation that you are entitled to.
Call us now for a phone or video consultation with one of our legal experts on 0800 041 8358 to find out if you are entitled to compensation, you may even be entitled to additional compensation if you have successfully claimed in the past.
