CWU intent on securing ‘best possible outcome’ as Telefonica triggers new pension review

Telecoms & Financial Services June 23 2020

News that Telefonica is to mount its third pension review in just nine years has prompted an unequivocal pledge by the union that it will strive to secure the best possible outcome for members.

The Telefonica Pensions Plan was last reviewed in 2013 – just two years after an earlier review failed to secure the reduction in future liabilities that the company was seeking to make at that time.

This time, however,  the company has indicated that the primary driver for another review are changes to the UK pensions market since 2013 and new legislation that has given retirees much more choice on how to access their pension savings.

Assistant secretary Sally Bridge said: “It is indeed the case that the options for the over 55s to access their retirement savings have changed virtually  beyond recognition since 2013 – but nonetheless the CWU approaches any pension review with massive caution, given that they are normally motivated by a desire to save money.

“In this situation, however, it  genuinely appears that is not the case, and that the outcome will be positive for members.

“The consultation that has just been triggered by Telefonica will run until early September, and members can rest assured that it will be the intention of the CWU to work with the company to ensure that the best possible outcome is achieved for them.

“We will keep members fully updated as the consultation progresses.”