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Royal Mail to close pension plan to future accrual

13 April 2017 07:19

Royal Mail says its pension plan is currently in surplus, but expects this will run out in 2018 and has decided to close it to future accrual on 31 March 2018, subject to trustee approval.

"The company's annual pension contributions are currently around £400m. If no changes are made, the contributions could more than double to over £1bn in 2018," the company said.

"We have concluded that there is no affordable solution to keeping the plan open in its current form. Therefore, the company has come to the decision that the plan will close to future accrual on 31 March 2018, subject to Trustee approval."

Royal Mail said it continued to work closely with its unions on a sustainable and affordable solution for the provision of future pension benefits.

"We will write to Plan members once further decisions have been made."

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