We should follow Royal Mail in delivering fairer pensions for all
(The Guardian Money News)

Here´s a solution that splits the difference between cushy final salary and shares-based pensionsIs this how we can bridge the absurd gulf between the (mostly) public sector workers who have great final salary-based pensions and the lousy stock market-based pensions for private sector workers? Royal Mail is ditching its final salary scheme, but rather than do what virtually every other privatised company has done and leave its workers at the mercy of under-funded stock market-based pensions, it has found a halfway house between the two. If other companies follow, it might just deliver us from pensions penury.Royal Mail´s problem was that its annual pensions bill of £400m for the final salary scheme threatened to escalate to £1.26bn unless it made changes. Understandably, the Communications Workers Union saw it rather differently, accusing the newly privatised firm of cost cutting and asset stripping to satisfy shareholders. What has emerged out of an at times bitter dispute - a strike ballot of 110,000 won 89% support - is a deal that Frank Field MP said this week is a breakthrough that could transform our retirement prospects. Continue reading...