Royal Mail amends DB pension proposals

Royal Mail Group has amended the proposed reforms to its defined benefit (DB) pension scheme.

The changes were announced to staff on 6 September, following a consultation with members of the Royal Mail Pension Plan, which began on 21 June and concluded on 25 August 2013.

Under the amendments, promotional increases to pensionable pay, and increments, would continue through to March 2018. This is a change from the original proposal, under which final salary pensionable pay would no longer increase for promotions after 1 April 2014.

In its annual report, published in August 2013, Royal Mail Group announced it had reduced the liabilities of the DB pension from a deficit of £2.7 billion in March 2012 to a surplus of £825 million in March 2013.