Thousands of Royal Mail managers are taking part in a consultative ballot today over the implementation of pension cuts and controversial plans to privatise the company.

Royal Mail has been accused by Unite, which represents the company’s managers, of implementing pension changes to “fatten the company up for privatisation”.

More than 6,000 managers will take part in the ballot, running from today until 16 August when members will state whether they support the latest government plans.

Royal Mail recently announced it is considering imposing a cap on basic pensionable pay for its scheme members, as it faces an extra £300m annual bill from its pension operations. It also stated that changes would see any increase in pensionable pay capped at RPI inflation up to 5 per cent.

Unite said that at present a scheme member aged 40 with 20 years’ pensionable service would get a pension of £21,512 on retirement at age 65. After the changes however, the pensionable pay would drop to £16,624.

The union added that a member aged 55 with 35 years’ pensionable service would get a pension of £17,059 on retirement at age 65 compared to a pension of £12,996 after the changes.

Unite officer for Royal Mail managers Brian Scott said: “The views of hardworking staff who have made Royal Mail the success it is today are being roughshod over”.

“It is no coincidence that the company is putting forward proposals to cut pensions ahead of the sell-off. The complex changes will penalise people who have stayed loyal and worked their way up, creating uncertainty for people who have paid into their pension in good faith,” he said. “Any cuts to the pension scheme to fatten the company up for privatisation will not be tolerated by our members. It is time their voice was heard and their concerns addressed.”

Royal Mail expressed its disappointment at Unite’s decision to hold a ballot and argued the current proposals would be necessary irrespective of whether it is sold or not.

In a statement, the company said: “Defined benefit pensions are becoming increasingly costly for all the remaining employers who offer such a scheme. That is because of conditions in the financial markets, including very low gilt yields."

"Royal Mail is already paying approximately £400m every year in ongoing contributions into the Royal Mail Pension Plan – one of the largest amounts in the UK- and will continue to do so. The company cannot afford the additional £300m that it would need to pay to keep the plan open if no action was taken.”

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