Personnel Today
  • Home
    • All PT content
  • Email sign-up
  • Topics
    • HR Practice
    • Employee relations
    • Learning & training
    • Pay & benefits
    • Wellbeing
    • Recruitment & retention
    • HR strategy
    • HR Tech
    • The HR profession
    • Global
    • All HR topics
  • Legal
    • Case law
    • Commentary
    • Flexible working
    • Legal timetable
    • Maternity & paternity
    • Shared parental leave
    • Redundancy
    • TUPE
    • Disciplinary and grievances
    • Employer’s guides
  • AWARDS
    • Personnel Today Awards
    • The RAD Awards
  • Jobs
    • Find a job
    • Jobs by email
    • Careers advice
    • Post a job
  • Brightmine
    • Learn more
    • Products
    • Free trial
    • Request a quote
  • Webinars
  • Advertise
  • OHW+

Personnel Today

Register
Log in
Personnel Today
  • Home
    • All PT content
  • Email sign-up
  • Topics
    • HR Practice
    • Employee relations
    • Learning & training
    • Pay & benefits
    • Wellbeing
    • Recruitment & retention
    • HR strategy
    • HR Tech
    • The HR profession
    • Global
    • All HR topics
  • Legal
    • Case law
    • Commentary
    • Flexible working
    • Legal timetable
    • Maternity & paternity
    • Shared parental leave
    • Redundancy
    • TUPE
    • Disciplinary and grievances
    • Employer’s guides
  • AWARDS
    • Personnel Today Awards
    • The RAD Awards
  • Jobs
    • Find a job
    • Jobs by email
    • Careers advice
    • Post a job
  • Brightmine
    • Learn more
    • Products
    • Free trial
    • Request a quote
  • Webinars
  • Advertise
  • OHW+

Latest NewsPay & benefitsPensions

Royal Mail’s pension deficit hits £8bn

by Personnel Today 21 May 2010
by Personnel Today 21 May 2010

Royal Mail’s pension deficit has now reached £8bn.


The figure published in the postal service’s annual accounts provides a snapshot of the pension fund’s position, but a full three-yearly valuation of the scheme, which is set to be published in the next two months, is expected to reveal an even bigger deficit.


According to the BBC, sources at the Royal Mail suggest the deficit could reach as much as £10bn.


Royal Mail has a legal obligation to make up the deficit so more money could be drawn out of the business to support the scheme.


The warning follows an announcement by the coalition government that it intends to part-privatise Royal Mail.


A source close to the issue said: “At the moment, the trustees with their actuaries are negotiating the financial repayment schedule the company will have to sign up to.


“But the government will not be able to sell the company with such a deficit.”


The annual accounts show Royal Mail paid a further £867m into the pension scheme in the last financial year, but this dwarfed both the company’s cash outflow of £517m, and the group’s pre-tax loss of £262m.


Sign up to our weekly round-up of HR news and guidance

Receive the Personnel Today Direct e-newsletter every Wednesday

OptOut
This field is for validation purposes and should be left unchanged.

It is feared an increase in the existing level of deficit payments could push the company’s total funding bill for the scheme to more than £1bn a year.


In 2008 the final salary pension scheme was closed to existing staff, with employees instead offered a much cheaper career average scheme, and their retirement age was raised to 65.

Royal Mail
Personnel Today

previous post
Inflation rate willl put pressure on employers to boost wages
next post
Boots chief paid £2.1m after just nine months in the job

You may also like

Jobs on the line across NHS trusts in...

9 May 2025

Why fighting the DEI backlash is about PR...

9 May 2025

Rumours during recruitment: how should HR respond?

9 May 2025

UK-US deal saves ‘thousands’ of jobs in car...

9 May 2025

Teacher apprenticeship route to be tied to school...

9 May 2025

Zero-hours workers’ rights to be extended from beyond...

8 May 2025

NHS worker awarded £29k after Darth Vader comparison

8 May 2025

Senior execs at BlackRock to work in office...

8 May 2025

CIPD appoints expert in AI to boost support...

8 May 2025

Preparing for a new era of workforce planning...

8 May 2025

  • 2025 Employee Communications Report PROMOTED | HR and leadership...Read more
  • The Majority of Employees Have Their Eyes on Their Next Move PROMOTED | A staggering 65%...Read more
  • Prioritising performance management: Strategies for success (webinar) WEBINAR | In today’s fast-paced...Read more
  • Self-Leadership: The Key to Successful Organisations PROMOTED | Eletive is helping businesses...Read more
  • Retaining Female Talent: Four Ways to Reduce Workplace Drop Out PROMOTED | International Women’s Day...Read more

Personnel Today Jobs
 

Search Jobs

PERSONNEL TODAY

About us
Contact us
Browse all HR topics
Email newsletters
Content feeds
Cookies policy
Privacy policy
Terms and conditions

JOBS

Personnel Today Jobs
Post a job
Why advertise with us?

EVENTS & PRODUCTS

The Personnel Today Awards
The RAD Awards
Employee Benefits
Forum for Expatriate Management
OHW+
Whatmedia

ADVERTISING & PR

Advertising opportunities
Features list 2025

  • Facebook
  • Twitter
  • Instagram
  • Linkedin


© 2011 - 2025 DVV Media International Ltd

Personnel Today
  • Home
    • All PT content
  • Email sign-up
  • Topics
    • HR Practice
    • Employee relations
    • Learning & training
    • Pay & benefits
    • Wellbeing
    • Recruitment & retention
    • HR strategy
    • HR Tech
    • The HR profession
    • Global
    • All HR topics
  • Legal
    • Case law
    • Commentary
    • Flexible working
    • Legal timetable
    • Maternity & paternity
    • Shared parental leave
    • Redundancy
    • TUPE
    • Disciplinary and grievances
    • Employer’s guides
  • AWARDS
    • Personnel Today Awards
    • The RAD Awards
  • Jobs
    • Find a job
    • Jobs by email
    • Careers advice
    • Post a job
  • Brightmine
    • Learn more
    • Products
    • Free trial
    • Request a quote
  • Webinars
  • Advertise
  • OHW+