From April the Royal Mail pension fund assets will be transferred to the government, pending EU approval.
The decision has received the backing of the Communications Worker’s Union and comes at a pivotal moment as the Royal Mail approaches privatisation.
The transfer will give Royal Mail pensioners a guarantee by the state of their final pay out.
In turn, the Government has gained about £28 billion in assets from the move, which it has vowed will go towards reducing the deficit rather than spending.
