14 May 2017, 19:48
15 May 2017, 07:05
15 May 2017, 10:07
RobertT wrote:My understanding is that we will only have one death in service payment up to a maximum level, regardless of which scheme is implemented from April 2018.
As the Cash Balance scheme is aimed at providing a tax free lump sum rather than having to commute some of your current pension to get one, it is effectively section D of the RMPP. Therefore I don’t really see the current death in service arrangements changing too much. Although ultimately I think such payments are something RM choose to give - they don't necessarily have to.
According to the recent RMTV ‘pensions special’, there would also be the opportunity to convert some or all of your accrued cash balance amount into more pension if you wish. Although whether that would be as more guaranteed pension via the RMPP, or using an annuity is unclear.
Hopefully RM will soon give us more in depth information.
15 May 2017, 11:28
5. How would my death in service benefits be affected by the changes?
The overall death in service lump sum would remain as 4 x pensionable pay, but would be based on your DC pensionable pay. There would be an additional death in service lump sum of 2 x DC pensionable pay payable to your dependants together with the value of your retirement account, plus there would be additional death benefits for your dependants based on your Plan service and pension benefits earned to 31 March 2018.
15 May 2017, 12:34