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RMPPC PENSION PLAN SECTION C

09 Jan 2017, 16:29

I joined the pension plan Feb 1990 pension plan section C i will be 55 April 2018 with 28 years service the proposal by our employer says the exception would be that from 1st April 2018,Section C members pre-April 2008 benefits would be linked to the retail price index up to 5% a year until they leave employment or take benefits, rather than final salary pensionable pay.

Does this mean me and other members OF SECTION C have now lost out on our FINAL SALARY PENSIONS to this new pension DC from 2018 be linked to the RPI.

RMPPC PENSION PLAN SECTION C

09 Jan 2017, 19:40

I suspect it means that the final salary used will be that as of April 2018 (or whichever is highest years annual earnings in the 3 years up to April 2018). The benefits from that date are then fixed at that date and will only increase in line with inflation until you retire.
From April 2018 till you retire you'll be contributing into the DC scheme and this has nothing to do with your final salary - the DC scheme will payout (upon your retirement) according to how well the (limited) investments that you have chosen in the scheme perform. If there's a 2008 style crash 6 months before you retire you could well take out less than you (and RM) have put in. This scheme won't rise at 5% per year - that figure appears to be the maximum that the final salary scheme will increase.

RMPPC PENSION PLAN SECTION C

09 Jan 2017, 19:52

Why try and cut costs re the final salary part when that won't be paid by Royal Mail...

This is to be paid by the government/tax payers as they took this on so we could be privatised
Last edited by mark.cup on 09 Jan 2017, 20:06, edited 1 time in total.

RMPPC PENSION PLAN SECTION C

09 Jan 2017, 19:56

Thats what I think it means. As RPI at the moment is more than our wage rise per year, then for us older opg who are near to 60, then it maybe not as bad as it first sounded.

I must admit It's bought forward my plan to pack it all in, even though I'm 54, I've saved enough to take me upto 60, so I think after the information we get in the next couple of weeks, I intend to leave this year. I won't have to join the DC scheme and both pensions will be frozen, and I don't think I'll lose more than 10% of the projected values.

RMPPC PENSION PLAN SECTION C

09 Jan 2017, 20:54

I think Royal Mail's proposal means the Final Salary link will be broken entirely for Section C members. On page 8 headed "Our proposal in detail" it states " The benefits you build up in the Plan until 31 March 2018 would remain unchanged and you can get these benefits when you come to take your pension. The exception would be that from 1 April 2018, Section C members' pre-April 2018 benefits would be linked to RPI (up to 5% a year) until they leave Royal Mail employment or take benefits, rather than to Final Salary pensionable pay." This is restated on other pages in the booklet, so unlike Section A and B, Section C members will lose the Final Salary link.

RMPPC PENSION PLAN SECTION C

10 Jan 2017, 00:27

Poshpost wrote:I think Royal Mail's proposal means the Final Salary link will be broken entirely for Section C members. On page 8 headed "Our proposal in detail" it states " The benefits you build up in the Plan until 31 March 2018 would remain unchanged and you can get these benefits when you come to take your pension. The exception would be that from 1 April 2018, Section C members' pre-April 2018 benefits would be linked to RPI (up to 5% a year) until they leave Royal Mail employment or take benefits, rather than to Final Salary pensionable pay." This is restated on other pages in the booklet, so unlike Section A and B, Section C members will lose the Final Salary link.


Yes, I read that too. Once again, discrimination. Really unfair that we are being singled out, but not surprising, as we are now the bulk of the pension scheme members. I think it sucks. Where's the union on this? Don't tell me, hiding as usual.

RMPPC PENSION PLAN SECTION C

10 Jan 2017, 08:59

There is now some info on this matter on myroyalmail: http://www.myroyalmail.com/news/2017/01/our-proposal-0

Since the launch of our pension consultation last week, some colleagues have asked if the proposal would affect the pension benefits they have already built up. Members’ benefits are made up of the following:

Pension benefits built up until 31 March 2012: these are held in a Government scheme called the Royal Mail Statutory Pension Scheme. The Government is legally responsible for these benefits and they are increased in line with RPI (up to 5% a year) until you take them or leave Royal Mail employment.

There would be no change to these benefits. Our proposal relates to the way you would build up benefits in future, after 31 March 2018.

Pension benefits built up between 1 April 2012 and 31 March 2018: under the proposal, you would continue to build up benefits as you do now until 31 March 2018.

After this date, Section C members’ pre-April 2008 benefits would be linked to increases in RPI (up to 5% a year) from 1 April 2018 until they leave Royal Mail employment or take their benefits, rather than to Final Salary pensionable pay at the date they leave.

Section A/B members’ pre-April 2008 benefits would continue to be linked to the greater of:

increases in RPI (up to 5% a year) and;
Final Salary pensionable pay at the date they leave.

The Final Salary link is required under the Section A/B rules in order to maintain increases at RPI (up to 5% a year) in the Royal Mail Statutory Pension Scheme. This is not a requirement under the Section C rules.

For more details on how Final Salary pensionable pay is calculated, please see the decision booklet on the 2014 pension changes, info here: https://www.myroyalmail.com/2014%20RM%20Pension%20Plan

What is RPI?

RPI stands for the Retail Prices Index. This means the annual rate of increase in the Government index of retail prices as measured at the previous September each year. We have in place a cap of 5% on RPI increases.

Here is a summary of where your benefits would come from, if the proposal went ahead:

pensionrm.png

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RMPPC PENSION PLAN SECTION C

10 Jan 2017, 13:56

Still find that confusing. If the benefits held by the Government up to 2012 are increased by the RPI up to 5%. Why does it say that Section c members pre 2008 will get RPI increases rather than Final Salary after April 2008. As that is surely part of what is covered by the Government. So doesn't that mean its all RPI anyway? And will the Section C pension when it is finally paid out at 60 and 65 continue to increase with the RPI up to 5% or not? I am sure at the least they would love to change to CPI like the section A/B pensioners are currently on.

RMPPC PENSION PLAN SECTION C

10 Jan 2017, 16:43

I think you will find that plan A/B are RPi and section C is Cpi.

RMPPC PENSION PLAN SECTION C

10 Jan 2017, 16:53

vmaxv4 wrote:I think you will find that plan A/B are RPi and section C is Cpi.

There's a little more to it as always, but when in payment:

Section A/B pensions increase by CPI : http://www.royalmailpensionplan.co.uk/s ... de_aw3.pdf

While Section C pensions it's RPI: http://www.royalmailpensionplan.co.uk/s ... de_aw2.pdf

RMPPC PENSION PLAN SECTION C

10 Jan 2017, 16:59

heapsy wrote:Yes, I read that too. Once again, discrimination. Really unfair that we are being singled out, but not surprising, as we are now the bulk of the pension scheme members. I think it sucks. Where's the union on this? Don't tell me, hiding as usual.


If it was possible all sections of the plan would be dealt the same fate!

"The Final Salary link is required under the Section A/B rules in order to maintain increases at RPI (up to 5% a year) in the Royal Mail Statutory Pension Scheme. This is not a requirement under the Section C rules."

RMPPC PENSION PLAN SECTION C

10 Jan 2017, 17:12

RobertT wrote:
vmaxv4 wrote:I think you will find that plan A/B are RPi and section C is Cpi.

There's a little more to it as always, but when in payment:

Section A/B pensions increase by CPI : http://www.royalmailpensionplan.co.uk/s ... de_aw3.pdf

While Section C pensions it's RPI: http://www.royalmailpensionplan.co.uk/s ... de_aw2.pdf


Ahh!!
A/B Pensioners not pensions :d'oh!

RMPPC PENSION PLAN SECTION C

10 Jan 2017, 17:33

why did the Cwu agreed to letting thousands of staff go on ( VR) voluntary redundancy over the past years which by the way came out of the pension fund and agreed to having agency workers replace our people across the industry who do not contribute to the pension fund but can join the Union membership .Less people contributing to the pension fund did no favours for us did no one see this coming the management want agency staff rather than full time staff.

RMPPC PENSION PLAN SECTION C

13 Jan 2017, 12:10

Ok enough of the waffle.

Under the new proposals do members in the Section C of the final salary plan lose there final salary pension?

Yes or No

Thanks guys

RMPPC PENSION PLAN SECTION C

13 Jan 2017, 12:35

empireboy wrote:Ok enough of the waffle.
Under the new proposals do members in the Section C of the final salary plan lose there final salary pension?
Yes or No
Thanks guys

The non-waffle answer is:

The link with salary will be taken away and replaced with increases by RPI instead. You won’t be losing what you’ve already built up.

Most allowances that are currently pensionable won’t be after 2018.

And from 2018 your pension accrued going forward will be on a defined contribution basis rather than defined benefit.

For more info consult your review booklet or myroyalmail.com.

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