The Trustee's relationship with RMG
The Trustee is a separate legal entity from Royal Mail Group (RMG) and the other sponsoring companies. This enables the Trustee to carry out its duties under the legal status of a trust and gives certain additional protections and legal benefits to the members of the Plan.
However, the Trustee must seek to work with RMG to ensure that the benefits of the Plan are effectively delivered to members and must ensure that it acts in the best interest of ALL the members and in accordance with the Trust Deed and Rules.
This involves careful consideration on the part of the Trustee to ensure that changes to the Plan which may be proposed by RMG are made fairly and on a correct legal and financial basis. The Trustee takes independent advice wherever appropriate.
For example, the Trustee worked closely with RMG to ensure the 2008 changes to members' pensions from final salary to career salary defined benefit (CSDB) and the April 2010 changes (increasing Normal Retiring Age, introducing flexible retirement options etc), were communicated effectively to the members and that all the correct administrative, legal and financial measures were put in place to maintain the Plan in its altered format.