More than 90,000 Royal Mail staff have been warned that their final salary pension is “unaffordable” and could be shut down, as experts warn a raft of other private companies will follow suit.
Royal Mail has written to employees telling them their “gold-plated” pension scheme may be closed because a deterioration in financial market conditions means it is likely to become too expensive to run beyond 2018.
The generous scheme is already closed to new staff, but the change would mean two-thirds of current staff, who are already signed up for a guaranteed pension, will be forced to switch to a different type of pension, which does not provide a guaranteed income.
This article was wrote by Katie Morley for The Telegraph.
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