2.21 Royal Mail Pension Plan (RMPP)
– On 1 April 2012 the Government intends, subject to State aid approval, to transfer the historic liabilities of around £37.5 billion from the RMPP, a private sector pension scheme, to a newly established unfunded public pension scheme, the Royal Mail Statutory Pension Scheme. The liabilities will be treated as contingent in the National Accounts, but will feature in Whole of Government Accounts. An estimated £28 billion of assets will also be transferred to Government. These assets will be disposed of in a measured fashion, subject to achieving value for money for the taxpayer. The Government intends that the gilt holdings will be cancelled in 2012–13. The proceeds from sale of other assets will be transferred to the Consolidated Fund. (iii)
This was hidden in last week’s budget. Sounds like good news but I was wondering what others think. The language seems a bit opaque.
I presume that the future owners of Royal Mail will need to set up their own pension arrangements. Will the pension scheme close when Royal Mail is privatised?