Post Office: Defined Benefit Pension Scheme (RMPP) – Historical Errors Made by Post Office

No. 223/21

Dear Colleagues


Branches and our Post Office members are advised of a serious matter that has been brought to our attention by Post Office. This issue is specifically in regards to the Defined Benefit Pension Scheme (Royal Mail Pension Plan – RMPP) which closed in March 2017 and there is absolutely no impact on the Defined Contribution pension scheme administered by Scottish Widows.


Post Office has, for a number of years, incorrectly calculated how some pay and/or allowances should count towards the pension members have built up in the RMPP. Therefore, Post Office has provided some incorrect pay information to the Pensions Service Centre (PSC) where the pension scheme is administered. We understand that extensive work has been undertaken over the course of the last year by Post Office to analyse the cause of these errors, for what duration this has occurred for and exactly who is impacted (as this does not affect all members of the RMPP). This analysis is still ongoing and we are advised it is not completed as the errors potentially go back a number of years.

It is essential that no RMPP scheme member panics or worries about this unfortunate situation as we have absolute commitments from Post Office and the RMPP Trustee that ultimately nobody will receive a pension less than they are entitled to. However, both CWU and Unite have pressed Post Office into being open and transparent with scheme members about these mistakes they have made and consequently they are communicating on the basis of letting members know what has happened and crucially what they are doing to rectify these problems.