The Royal Mail Collective Plan is “ready” and set to launch on 7 October 2024, Royal Mail Group has confirmed.

Initially announced in 2018, the Royal Mail Collective Plan became the UK's first collective defined contribution (CDC) scheme in 2023 after passing The Pensions Regulator's assessment process, in what was highlighted as a "milestone" moment.

In an update, Royal Mail has since confirmed that the Collective Plan is ready to launch, with every employee with at least a year’s service eligible to join.

The joint statement from Royal Mail, Unite Communication Managers Association (CMA) and the Communication Workers Union (CWU) said: “Royal Mail, the CWU and Unite CMA agreed that the Royal Mail Collective Pension Plan (the Collective Plan) is right for our people, and we have worked hard with the government, The Pensions Regulator, and the trustees of the Collective Plan to make it possible.

“We are delighted to be able to share that the Collective Plan is now ready and will launch on 7 October 2024.”

Under the Collective Plan, members will receive an automatic income for life, in addition to a cash lump sum, which is expected to help make it easier for people to manage their money in retirement.

Employees will pay 6 per cent of their pensionable pay into the collective pot each payday, while Royal Mail will top up that up with a contribution of 13.6 per cent.

The scheme will be run by an independent board of trustees, made up of independent professional pension trustees as well as individuals from Royal Mail, the CWU and Unite CMA.

Members impacted by the launch can expect to be notified of the changes this week (3-6 July), with letters sent out to explain their options and any actions they might want to take.

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