POST OFFICE
PENSIONS
Click on Link above to get pension info
Next Class C meeting
Friday March 22nd 10.30 a.m.
GWRSA
Guest ; Colin Toogood RMSD Area Manager
Pension Meeting end of April TBA
For Members in Royal Mail Letters, Royal Mail Streamline, Parcelforce, Post Office Network, Post Office Customer Management and all Postal Group Employees.
| Benefit | POSS | POPS |
| NRD Normal Retirement Date | 60 | 60 |
| Retirement Pension | 1/80th of Pensionable Pay for each Year of Service
|
1/60th of Pensionable Pay for each Year of Service
Deduction from Pensionable Earnings of £3,328 LED Lower Earnings Deduction |
| Lump Sum on Retirement | 3/80ths of Pensionable Pay for each Year of Service | Pension can be commuted up to maximum allowed by the Inland Revenue |
| Pensionable Earnings | Salary ( or wages ) including London Weighting and Pensionable Allowances | Salary ( or wages ) including London Weighting and Pensionable Allowances |
| Final Earnings | Best Year in Last Three Years or best three year average, whithin ten years of NRD, if higher. | Best Year in Last Three Years or best three year average, whithin ten years of NRD, if higher. |
| Guaranteed Pension Increases | Increaseses in line with Retail Price Index (RPI) | Increaseses in line with Retail Price Index up to a maximum of 5% in any year. |
| Ill Health Benefits | Unreduced Immediate Pension based on accrued service enhanced by a number of years depending on past and future service. | Unreduced Immediate Pension based on accrued service enhanced by a number of years depending on past and future service. |
| Death in Service Lump Sum | 4 Times Pensionable Pay | 3 Times Pensionable Pay or more |
| Death in Service Dependants Pensions | Dependant's Pensions of 50% of ill Health pension payable at date of members death ( Paid in full for First 91 Days). Children's Pension payable in addition. | Dependant's Pensions of 50% of ill Health pension payable at date of members death. Children's Pension payable in addition. |
| Death in Retirement
Lump Sum |
Balance of five years pension | Balance of five years pension |
| Death in Retirement Dependants Pension | 50% of members pension (Paid in full for first 91 Days) Childrens Pension payable in addition. | 50% of members pension (Paid in full for first 91 Days) Childrens Pension payable in addition. |
| Members Contributions | 6% of Pensionable Pay | 6% of Pensionable Pay |
| Contracted out of State Earnings Related Pension Scheme (SERPS) | YES | YES |
PLYMOUTH BRANCH DELEGATES
PAT O'CONNOR - CLASS "C" CHAIRMAN
JIM STEWART - CLASS "C" MEMBER
This, the second conference held for the class "C" members of the Union was held at CWU HQ, WIMBLEDON, on Thursday February 7, 2002.
The Conference opened at 1100hrs, and this year it was the unions vice president who did the honour. She said she did not intend to make a speech and that she did not intend to run a strict regime and explained the timetable of the Conference.
The General Secretary, BILLY HAYES was next to welcome the delegates saying how important it was to give past full members with a wealth of experience of the CWU the opportunity to come together as a force to air views.
TONY YOUNG, who is the outgoing Officer to the Retired Members' Advisory Committee, and DEPUTY GENERAL SECRETARY of the Union, told us he was pleased by the way the CLASS "C" SECTION was developing and that the Regional committees would be set up shortly as directed at last year's Conference. He retires later this year being a former General Secretary of the NCU, the other Union the UCW merged with to form the CWU. He said we were still pressing for better conditions for the country's pensioners and increased pensions to bring them out of the poverty trap.
He said that the Union had asked the Post Office to allow increases in benefits to our pensions, but they had refused.
THE RT HON IAN McCARTNEY MP. Who is the Minister for Work & Pensions gave a talk which covered the state pension, which he said would not be linked to wages for it's annual increases, pensioner credits, tax credits, and went on to baffle us with a load of other credits which were going to be available. You needed to be an "accountant" to keep up with him.
He did say that from 2003, those reaching 65yrs will be automatically assessed for entitlement to PENSIONER CREDIT, and if entitled to a payment, they will not be assessed again for 5yrs, even if their situation improves. If their situation changes for the worse, they can apply for re-assessment.
The motions, which are attached to this report, were debated and the result is as follows;
MOTION 1.
This one is self explanatory and asks for the increases in P.O. / B.T. Pension to be linked to wages and not the R.P.I.
You will remember we put a motion to Annual Conference last year, through the branch but it didn't go anywhere. This one however was carried at our own conference and will become Union policy.
MOTION 2.
This was our motion, but the Standing Orders Committee ruled that if the previous motion was carried, this one will fall. -- so our Motion 2 fell.
Jim personally put a lot of work into this one and it was JIM, PAT, and DUFF COOPER, who formulated it on behalf of PLMOUTH CLASS "C" SECTION.
We were sickened to see it fall.
REPRODUCED BELOW IS OUR MOVING AND SECONDING SPEACHES.
JIM STEWART TO MOVE
MOTION 2
FIRST PART OF THE MOTION IS ASKING FOR REASURANCE FROM OUR TRUSTIES REGARDING OUR PENSION SCHEMES.
IN THE LIGHT OF THE FINANCIAL DOWNTURNS THE WORLD HAS EXPERIENCED OVER THE LAST COUPLE OF YEARS WE FEEL THERE IS CAUSE FOR CONCERN IN RESPECT OF THE SCHEMES.
INCOME FROM CONTRIBUTIONS IS NOT FAR OFF OUTGOINGS - FOR PENSIONS, LUMP SUMS etc.
THE DOWNSIZING OF STAFF WILL MEAN MORE PAYOUTS FOR REDUNDANCIES, LUMP SUMS AND PENSIONS.
MORE MONEY THAN EVER GOING OUT - BUT LESS CONTRIBUTIONS COMING IN.
MANY LEADING UK BUSINESSES ARE FINDING IT SO DIFFICULT TO KEEP THEIR SCHEME FUNDS UP TO THE MINIMUM OPERATING LEVEL REQUIRED BY LAW.
THEY ARE ASKING THE GOVERNMENT, THROUGH THE NATIONAL ASSOCIATION OF PENSION FUNDS, TO RELAX THE RULES SO THAT THEY CAN DEFER PAYING THE DEFICITE BECAUSE THEY CAN'T AFFORD TO PAY.
COLLECTIVELY THEY OWE £12b TO MAKE UP THE SHORT FALL TO PUT THEIR SCHEMES BACK TO THE MINIMUM OPERATING LEVEL REQUIRED BY THE LAW.
MOST FUNDS HAVE UP TO 70% OF THEIR ASSETS IN SHARES, SO YOU CAN SEE WHY THERE IS CAUSE FOR CONCERN.
AN INCREASING NUMBER OF FIRMS ARE CLOSING DOWN THEIR SCHEMES TO NEW MEMBERS - AND OUR BT PENSIONERS ARE ONLY TOO AWARE THAT THEIR SCHEME IS ONE THAT HAS ALREADY BEEN SHUT DOWN TO NEW MEMBERS.
THE ONLY CONTRIBUTERS NOW BEING THOSE WHO WERE IN THE SCHEME BEFORE SHUT DOWN.
WITH BT AND CONSIGNIA NOT BEING SO FINANCIALLY BOUYANT AS THEY USED TO BE, IF THE WORLD MARKETS DONT PICK UP, AND MEMBERS CONTRIBUTIONS REDUCE -
WE WANT TO KNOW -- COULD THERE BE A PROBLEM.
THE NEXT PART OF THE MOTION DEALS WITH A BENEFIT BEING APPLIED TO STATE PENSIONS IN 2004, AND IF APPLIED TO OUR BUSINES PENSIONS, WOULD GIVE US A BETTER DEAL EACH YEAR THAN WE GET NOW.
CHANCELLOR BROWN HAS PROMISED THAT STATE PENSION INREASES WILL BE EQUAL TO INFLATION -- OR, 2.5% WHICH EVER IS THE HIGHEST.
SO THE MINIMUM INCREASE WILL BE 2.5%, AND WE WANT THIS TO FLOW THROUGH TO OUR BUSINES PENSIONS.
REMEMBER THAT OUR UNION POLICY, THAT OF THE POST OFFICE FEDERATION AND THE NATIONAL PENSIONERS CONVENTION IS ALREADY, TO PERSUE A LINK TO EARNINGS FOR PENSION INCREASES, AND WE ALL AGREE WITH THAT.
BUT IN THE MEAN TIME WE MUST GET THE BEST WE CAN, -- AND
A MINIMUM 2.5% GIVES US A MINIMUM GAURANTEE ------
WHICH IS CERTAINLY AN IMPROVEMENT ON WHAT WE GET NOW.
SUPORT YOURSELVES AND SUPORT THE MOTION.
I MOVE
PAT O'CONNOR, PLYMOUTH, TO SECOND
AND TO EMPHISISE THE IMPORTANCE OF BOTH PARTS OF THE MOTION.
OUR PENSION SCHEMES, LIKE MANY OTHERS, USED TO BE CASH RICH, AND SO MUCH SO THAT THE PO & BT HAVE ENJOYED MANY YEARS OF A "PENSION HOLIDAY".
TIMES ARE CHANGING AND, AS JIM SAID IN MOVING, BT CAN NO LONGER WITHSTAND THE BURDEN AND UPKEEP OF IT'S SCHEME.
AS WE UNDERSTAND IT, THE POST OFFICE SCHEME IS NEXT FOR THE CHOP, AND FOR THE SAME REASONS.
ALWAYS BEING A VERY RICH SCHEME, IT WAS ONE OF THE BIGGEST IN EUROPE.
TO MY HORROR, ON READING LAST YEAR'S ANNUAL REPORT I SAW THAT THE ASSETS HAVE DROPPED BECAUSE OF IT'S INVESTMENT IN THE TROUBLED WORLD MARKETS.
THE AMOUNT LOST IN THIS AREA DURING 2000 - 2001 WAS ALMOST 1.9 BILLION POUNDS, AND THAT LEFT £16B IN ASSETS.
WELL IF WE LOST £1.9B ON THE MARKETS IN 2000 - 2001, AND THE MARKETS PERFORMED EVEN WORSE LAST YEAR, WHAT WILL THE LOSS BE THIS YEAR?
WE ASK YOU TO ASK THEM TO TELL US THAT OUR SCHEMES ARE NOT GOING TO FOLD, LEAVING US WITH NO PENSIONS, AND THAT OUR BUSINESSES WILL CONTINUE TO KEEP THE FLOAT TO THE MINIMUM OPERATING LEVEL, AS DIRECTED BY GOVERNMENT.
MOVING ON TO THE SECOND PART OF OUR MOTION, WE ARE ASKING FOR SOMETHING THAT WE HAVE NOT GOT AT PRESENT. -- THAT IS THE SAME 2.5% MINIMUM GAURANTEED INCREASE TO STATE PENSIONS THAT WILL BE INTRODUCED IN 2004.
IF THE RPI RISE IS MORE THAN THE MINIMUM 2.5%, WE WILL GET THAT.
AND IF A MIRICLE OCCURES AND THE LINK TO WAGES IS RESTORED, WE WILL GET THAT.
SO BY CARRYING THIS MOTION WE CAN'T LOSE.
I SECOND
MOTION 9
The order of business meant that Motion 9 was next on the agenda.
The way the Union increases Class "C" contributions.
The motion is saying that any increase in contributions must be based on the same % increase that we get in our business pension.
Since conference, I have learned that our Union contributions increase is based on the movement in the RPI, and that is exactly what our business pension is based on, so we were mislead at conference by the sponsors of this motion and will come unstuck if a link to earnings is achieved, because earnings increases are always higher than RPI increases and we will then be stuck with contribution increases tied to wages instead of the RPI.
WE WILL HAVE TO GET THIS ONE SORTED!! BUT IT WAS CARRIED.
MOTION 3.
LES SEARLE from Bristol spoke on this one, but was asked by our RETIRED MEMBERS ADVISORY COMMITTEE not to move it.
It asks that our Union's delegates to the NATIONAL PENSIONERS CONVENTION seek a policy that will allow an individual membership status with annual membership and voting rights. This would allow more responsibility for making decisions and policy to be shifted to the whole membership, and not left with the few at the top and the Unions who sponsor the organisation.
It was agreed that the Committee take a look at it and report back on progress.
MOTION 4.
I mentioned earlier about what TONY YOUNG said about the CLASS "C" Regional Committees which are to be set up. This policy was adopted at annual conference last year as MOTION 64. This motion is asking the Union to pull it's finger out and get it introduced.
CARRIED.
MOTION 5.
Here we ask that our Union gets behind the N.P.C.( National Pensioners Convention ) and it's policy to improve health care for older people and ensure they are treated with dignity and respect when being seen and treated. Furthermore the motion seeks to put a stop to the reducing of old age pensions when in hospital.
CARRIED.
MOTION 6 FELL
MOTION 7 WAS WITHDRAWN.
MOTION 8.
The last motion on the pad was asking that the Secretary of Health's announcement to allow patients to be treated in a hospital of their choice, is expanded to include free national travel for those opting to be treated outside their own health area.
CARRIED.
The conference finished at 1530hrs and we faced the slow journey out of London to pick up the M3 and on to the A303, arriving home around 2200hrs.
FOR A LONDONER , OUR CHAIRMAN WAS CLUELESS ABOUT GETTING FROM WIMBLEDON TO THE OUTSIDE WORLD
AND SO WAS I. IT TOOK 2hrs TO GO 12MILES!
PAT O'CONNOR
JIM STEWART
Michael Duncombe Cheif Executive of the Post Office Pension Scheme & Lionel Sampson CWU Post Office Pensions Trustee met 4 CWU Reps, 2 Ley Members from the Post Office and 14 Retired Class C Members on 8 th Sept 2000. A detailed Report is on page 8A follow next link at foot of page. This Report will be sent out to all Postal CWU Units.
A Post Office Pension Merger Helpline has been set up on 01246 546666
A Recent Win in the European Court will give Part Time Workers who were previously excluded from PO Pensions , the right to retrospective admmision and this is a major victory against discrimination of Part Time Workers.
BT PENSION SCHEME AND EQUITABLE LIFE AVCS - UPDATE
BT has issued the following briefing giving advice to BT Pension Scheme AVC Scheme members with Equitable Life. CWU members should seek independent financial advice before making any changes to their existing AVC arrangements.
EQUITABLE LIFE AVCs
On 8 December 2000 Equitable Life Assurance Society announced that it no longer expected to find a buyer and would close to new business with immediate effect. Equitable Life had put itself up for sale after losing a test case over its treatment of holders of guaranteed annuity policies, this finding has a direct effect on its profits.
Equitable Life remains solvent and intends to run-off the business it has written, continuing to pay out benefits and accept premiums under existing policies.
BT Pension Scheme members who contribute to the Equitable Life AVC arrangement fall into two categories, those who invest in the Managed Fund and those who invest in the with-profits policy. There will be no effect on the Managed Fund as a result of these events.
The with-profits policy is affected as follows :
The bonus reduction that was applied for the first 7 months of 2000 is unlikely to be restored. Growth from 1 August 2000 will accrue in the normal way inline with investment performance of the with profits fund. This means that the interim bonus of 9% will in reality result in a declared bonus in the region of 3.5% for the year 2000.
Future investment returns are likely to be reduced following a rebalancing of the fund's underlying investment strategy;
There will be a Market value Adjustment (MVA) of 10% on current fund values (including any terminal bonus) if monies are withdrawn or transferred from the with-profits fund, whether within Equitable Life or externally.
There are two issues for consideration if you have AVCs invested in the with-profits fund :
1. Future contributions.
You may continue to contribute to the with-profits policy, which will still offer guaranteed returns, albeit possibly at a lesser rate than to date.
You may switch future contributions to one of the other AVC funds offered via the BTPS, or a free standing AVC fund of your own choice.
You may suspend paying AVCs.
What you must do : should you wish to stop paying to the with profits policy or redirect your contributions to an alternative arrangement you should advise the Pensions Centre in writing.
2. Benefits accrued to date.
As stated above, the with profits policies will remain active and continue to grow although it is likely that the returns will decrease in the longer term.
Should you wish to transfer your with profits fund you should be aware that Equitable Life will apply a Market Value Adjustment (MVA) of 10% of the current fund value, including any terminal bonus. The level of MVA has been set to protect members who do not transfer and will be periodically reviewed. Therefore, before transferring, you should consider the impact of the MVA may have on your fund value against the potential future investment returns.
If you are considering transferring your AVC fund, due to the financial implications, it is strongly recommended that you seek independent financial advice before coming to a decision.
Please contact the Pensions Centre should you wish to investigate a transfer.
Their telephone number is 0800 731 47 47
Finally
The Equitable Life court case and the impact of the House of Lords ruling has been an ongoing issue for some time. Both BT and the BTPS Trustees have been monitoring the situation throughout and have taken advice from our professional advisors.
Despite recent press speculation, the Equitable Life with-profits fund is solvent and remains an appropriate investment vehicle for pension funds. However, as it will be adopting amore conservative investment strategy in the future this might lead to lower investment returns.
If you are contributing to an Equitable Life AVC contract via the Scheme, the BTPS Trustees will be writing to you direct with more detailed information.
The BTPS Trustees have recently completed a review of the AVC provisions and intend to introduce further options during April 2001.
In the meantime, both BT and the BTPS Trustees will continue to monitor the situation.
Further information can be found on the Equitable Life web site www.equitable.co.uk
JOHN STEELE
21 December 2000
A new web site has been started by the Post Office Pension Board click on the link below :-
http://www.postoffice.co.uk/pensions
There is an on-line pension calculator and information on both POSSS & POPS as well as AVC's and lots more advice and info.
Also a good web site on Retirement issues can be found by clicking on this link for all our class C members :-
TO ALL CWU MEMBERS
When you Retire from work either through Early Medical Retirement or Ill Health Retirement you are entitled to remain in the CWU as a Class C Member. For a Minimal fee of 73p a week you can enjoy Class C status. You will then be entitled to :-
Death Grant Currently set at £516.00 which increaseses annualy with Pay Rates paid to your nominee.
Full Legal Services to you and your family
Voting Rights on Pension & Retirement issues.
Regular Meetings of the Retired Section
Pat O'Connor, Chairs regular meetings of the Class C section , held at the Great Western Railway Staff Association Pennycomequick Plymouth, and Phil Shillabeer is the Section Secretary. They meet 4 times a year with regular speakers from the CWU Represented Industries, Age Concern Groups and various public authority speakers. All the Discount Services that you were previously entitled to remain at your disposal.
NEXT MEETING March 22nd AT GWRSA Guest Speaker Colin Toogood RMSD Area Manager Plymouth
STOP PRESS
PLYMOUTH BRANCH DELEGATES
PAT O’CONNOR - CLASS “C” CHAIRMAN
JIM STEWART - CLASS “C” MEMBER
This, the first conference held for the class “C” members of the Union was held at CWU HQ on Thursday February 1 2001.
The Conference opened at 11.00hrs with an address from the Conference Chairman, Fred Jepson, who said he did not intend to make a speech and that he did not intend to run a strict regime and explained the timetable of the Conference.
The General Secretary was next to welcome the delegates saying how important it was to give past full members and contributors of the CWU the opportunity to come together as a force to air views on those vital issues that affect all retired members, to debate and put forward motions to the main Annual Conference of the Union. Derek Hodgson told us we will elect two delegates from this Conference today to represent all Class “C” members at the Annual Conference. He went on to elaborate on his printed message which was included in the Agenda booklet. John Keggi told of his commitment to the Retired Members Section and what he had done to promote it’s profile within the Union.
Tony Young, who is the Officer to the Retired Members’ Advisory Committee, told us of the consultation document the government put to the Unions on retired people’s issues. The Committee responded to the many issues which included State Pension age - the Committee said it thought workers should have the right to work on after age 65 and receive their pension if the wished. The annual State Pension increase, and it’s link to the RPI was part of the consultation exercise and the Union’s opposition to this was raised once again. More help for the less well off but with an emphasis on higher basic rate State Pension.
Tony went on to say that the Union is taking the issue of the Post Office & BT Pensions seriously and have worked to get as much of members’ pay made personable in order to give them a better pension when they leave the service.
The motions, which are attached to this report, were debated and the result is as follows;
MOTION 9
This one was not carried because there is now 12 months delay allowed for a retired person to apply to become a Class “C” member.
MOTION 1
The Committee asked the Conference to agree to remit the motion as, they agreed with it in principle but would have to work on it. We didn’t agree and asked for the vote to be taken. Carried unanimously.
MOTION 2
This unfair rule was introduced in 1998 and meant that because business pay awards were much higher than pension increases, retired members are paying the same increase in contributions as working members but only receiving a fraction of the percentage increase in their income. Last year for example retired members only received 1.1% increase in pensions. Needless to say another unanimous decision to carry the motion
MOTION 8
Present rules only allow those members who retire through age, or are medically retired, to be a Class “C” Member. It was successfully argued that those taking an early retirement, redundancy or portability status, (meaning waiting to get another job) should be allowed to be a member.
This was another carriage.
MOTION 3
The necessity of having Post Offices accessible to pensioners and of course the drive to halt more Office closures was bound to be a winner.
Carried.
MOTION 4
A successful attempt by the London delegation to set up a regional structure which would bridge the gap from Branch to National level. There was opposition to this one saying that there would not be enough interest from retired members to take up the posts. The motion was however carried.
MOTION 5
Again, doubters suspected that the uptake of places would be few and far between, and what would the subjects be? How would it be funded? How could this be carried? But it was!
MOTION 6
Free glasses and dental treatment was the theme for this and their was no opposition from any quarter. The Committee asked to take this for remit and the Conference agreed.
MOTION 7
Last but by no means least, we have our old friend Les Searl who moved this on a bit of a vested interest basis. Poor old Les has recently experienced Prostate cancer and has been very poorly as a result and coincidentally so had one of the supporting contributors to this debate. Les told us some frightening facts about the illness and that it is the second biggest killer of males, second to heart disease, in Britain. More men die of Prostrate cancer than women die of cancer of the womb! We should all be aware, says Les, of the dangers, the symptoms, and the fact that an initial test is available from GPs.
Carried
The two motions which came out at ballot to go forward to the main Conference to become Union policy were MOTIONS 4. & 7. And it would be good to see our branch taking an active part in the processing of both Motions.
GUEST SPEAKERS were Rodney Bickerstaffe and Jack Jones. Both gave brilliant accounts of their life long achievements with Rodney having the Conference in stitches telling us of his exploits and meetings with Maggie and her Government. His Union - UNISON - is the biggest in Britain with 1.3 million members and boasts a very strong retired members section. Our own Class “C” Section was modelled on the UNISON one.
Rodney said he was retiring shortly and was talking to Jack Jones some time ago and was asked if he would take over from him as the leader of the NATIONAL PENSIONERS CONVENTION. He gave it some thought and agreed. There will be a ballot for the job later this year and he will be a very worthy contestant.
The legendary JACK JONES came to the rostrum - he is in his late eighties and went to fight in the Spanish Civil War - and told us of his early dealings with Government and the setting up of the State Pension with Clem Attley. He said how the pension was designed to look after the retired who had worked hard all their life and to keep pace with the wages of the working people. Of course this was kept as a sacred piece of legislation until the Tories betrayed the pensioners of the country. The money saved allowed cuts to be made on the higher tax bands of the rich which put hundreds of thousands of pounds in their pockets at the expense of the poor. One can only wonder why Tony Blair won’t restore the old Labour Party sacred legislation born out of true socialist values all those years ago.
Jack touched on many Pensioner issues including his campaign for free public transport for Pensioners. New legislation out shortly will mean that all Local Authorities will be obligated to provide a minimum of half fare for Pensioners on busses. Plymouth do better than this already but Cornwall have not relented and give no reduction at all.
There are 4 million Pensioners in Britain and 2 million of these lead lonely and miserable lives, he says. Many of them just need human contact now and again and this is one of the many concerns the NPC is addressing. There are many organisations affiliated to the convention and we feel it would be a worth while action for our Branch to join them.
PAT O’CONNOR
JIM STEWART
Tony Young DGS and Head of the Retired Members Section will be the Guest Speaker at the next Class C Meeting on 23rd March at 10.30 a.m. at The Great Western Railway Staff Association Pennycomequick Plymouth. Please try and come along to see this prestigeous speaker and put your ideas on the section to it's head.
