The Royal Mail Collective Pension Plan

The Collective Plan launched 7 October. You may see changes in your payslips relating to Pensionable Pay. Click here to understand the change.

Royal Mail, the Communication Workers Union (CWU) and Unite CMA agreed that people working for Royal Mail Group Limited (including Parcelforce) should have a pension plan that gives them two things: an income for life and a lump sum. You can read the joint statement here.

It’s called the Royal Mail Collective Pension Plan – or ‘the Collective Plan’ for short. It is the first of its kind in the UK.

The Collective Plan launched on 7 October 2024. Employees received communications in July 2024 about their pension options. The Collective Plan is for those who have over 12 months of continuous service with Royal Mail Group Limited (including Parcelforce).  It will give members an income for life and a guaranteed lump sum on retirement. 

​A corporate Trustee (the Trustee) has been appointed to run the Royal Mail Collective Pension Plan (the Collective Plan). The Trustee is made up of 9 Directors; some are professional Trustees, some work for Royal Mail and some are from the Unions. Whatever their background, in their role as a Trustee Director, they are independent of Royal Mail.

Resources for understanding the Collective Plan better

The Trustee has their own website where you can find information about the Collective Plan and the Directors.

We also have the following resources internally to help you understand what this change means for you.

Transition to the Collective Plan

When the Collective Plan launched on 7 October 2024, employees in the Royal Mail Pension Plan (RMPP) and those paying standard contributions to the Royal Mail Defined Contribution Plan (RMDCP) started contributing to the Collective Plan instead, unless they opted out.

Others with over 12 months of continuous service had the opportunity to opt into the Collective Plan. 

At the same time, Royal Mail’s auto-enrolment pension plan changed from RMDCP to National Employment Savings Trust (NEST). This mostly affects those employees reaching 3 months’ service (or those meeting the auto-enrolment eligibility criteria) who will be in NEST until 12 months’ continuous service when they will join the Collective Plan. NEST is also available as an alternative pension arrangement to the Collective Plan.

Forms for actions

This form is for those who wish to opt into the Collective Plan, have over 12 months’ continuous service with Royal Mail and are over 18 years old.

Click here for this form.

This form is for those who do not want to join the Collective Plan at their 12 months’ service (or aged 18).  If you are currently in the Royal Mail Defined Contribution Plan (RMDCP) or Royal Mail’s auto-enrolment pension arrangement with National Employment Savings Trust (“NEST”), by completing this form you will automatically move to/remain in NEST. If you are not currently in a Royal Mail pension scheme, you will not be enrolled into any other scheme.

On this form, you also have the option to start or change your AVCs in NEST.  If you already have AVCs in NEST, these will continue as they are unless you instruct otherwise.  If you are currently paying AVCs into the RMDCP, these will not transfer over. You will need to set up new ones in NEST.

Click here to access the form.

This form is for those who wish to opt into NEST and/or wish to start/change or stop AVCs in NEST.

Click here to access this form.

This should be done via the People App. Once in the People App, select the “Pensions – Collective Plan” tile under “My Information” and update your new “Pay Extra” preferences.  Click here for more information on the lump sum booster.

This should be done via the People App. Once in the People App, select the “Pensions – Collective Plan” tile under “My Information” and update your new “Pay Extra” preferences.  Click here for more information about Additional Voluntary Contributions (AVCs). 

Opting out of the Collective Plan will affect your pension, life assurance and income protection benefits. If this is your first opt-out, you will only be able to re-join the Collective Plan one further time. If this is your second opt-out, you will not be able to re-join the Collective Plan. To opt out, please contact Royal Mail HR Services at hrsc.optants.in.and.out@royalmail.com or 0345 6060 603.

June 2024 employee letters about the new pension arrangements

  • TC01RMDCP - For those in RMDCP standard section
  • TC01RMPP – For those in RMPP
  • TC02 – For those with over 12 months’ service and not in a pension scheme
  • TC03 – For those with over 12 months’ service and in the RMDCP non-standard section (5% employee/4% employer contributions)
  • TC04a – For those with under 12 months’ service and in RMDCP
  • TC04b – For those in RMDCP, who will reach 12 months’ service shortly after 7 October 2024 (Link to letter)
  • TC05a – For those with under 12 months’ service and not in a pension scheme
  • TC05b – For those not in a pension scheme, who will reach 12 months’ service shortly after 7 October 2024

Enquiries

For enquiries or further information, please contact the Collective Plan Helpline on:

 

Further Information

For information on previous Royal Mail pension schemes and Pension Salary Exchange, please visit: