Royal Mail denies pension cuts

Royal Mail has denied a report that it plans to cut the pensions of around 167,000 of its postal workers.

Royal Mail staff would have to work for five more years before collecting their retirement pay, according to a company document published in the Daily Mirror.

But Royal Mail said the document was “out of date” and no decision on pension provision had yet been taken.

The report comes on the eve of a two-week campaign of staggered strike action across the UK postal service.

“Royal Mail said very clearly earlier this year that it would be consulting on the future of the pension scheme for both new recruits and existing members,” a company spokesman said.

“But no decisions have yet been taken as we have not even begun the formal consultation.”

The plans published in the Mirror to plug the company’s £6bn pension deficit included closing its final-salary scheme to new joiners from next year – a move that would echo the actions of many large UK employers.

Existing workers would also be affected, with the age at which staff can retire increase from 60 to 62 next year and to 65 from 2010. In addition, lump sum one-off payments would be trimmed.

The Royal Mail’s relationship with the main postal workers’ union Communication Workers Union (CWU) is already fragile amid a continuing feud over pay and the group’s modernisation plans.

Postal workers walked out in two separate 24-hour strikes last month – the first industrial action at the Royal Mail for more than a decade following a break down in discussions.

The impasse has prompted the CWU to announce a rolling programme of walk outs – beginning on Wednesday 25 July – aimed at disrupting every aspect of the Royal Mail’s service.