Pension Reforms Welcomed By MP And Union Officials

MP Graham Stuart and union officials have welcomed pension reforms which they say will benefit postal workers.

Mr Stuart says that the brand-new pension scheme, Collective Defined Contribution will also give people better returns and long protection. His views are also echoed by CWU representatives.

Mr Stuart, The MP for Beverley and Holderness said;

 “The introduction of CDC schemes is welcome news for my constituents. Having security when it comes to retirement plans is something everybody should be entitled to. This is what CDC pensions aim to deliver.”

 “A significant benefit of CDC schemes is that if your employer goes under, your payouts will not be affected. I know that this would put many of my constituents’ minds at ease given recent cases of major UK companies going bankrupt, and workers’ pensions being put at risk.”

“CDC schemes balance pension security with higher final benefit levels. Not only do members receive regular payouts from their scheme, but members’ CDC contributions are pooled together. This results in better savings returns and greater long-term protections. This is because the risk is shared.”

The MP says this is something that the Royal Mail and the Communication Workers’ Union have long championed for.

He adds the Government has worked closely with these organisations to develop the proposals.

Unions Say Collective Defined Contribution Pensions Are Certainly Ground Breaking

Communication Workers Union Branch Secretary for Hull & East Riding Andy Parrish also welcomed the news. He said;

“As a result of the government listening and getting this through around 40,000 workers are set to benefit.  This pensions scheme is a groundbreaker. While it is not a gold plated pension it will certainly ensure the workforce has a decent wage in retirement.”

Mr Stuart added;

“The Government intends to legislate to allow Royal Mail to create the UK’s first CDC scheme. Then we will be allowing other organisations to follow suit.”

“This is welcome progress. I am also delighted that 170 hard-working Royal Mail workers in Beverley and Holderness will be the first to benefit when these proposals are delivered.”

 “As a strong advocate of any steps that result in better savings returns and greater private pension protection for my constituents. I will continue to champion the Government’s ambitious pensions reforms.”