28 Jul 2017, 20:46
28 Jul 2017, 21:42
28 Jul 2017, 21:49
29 Jul 2017, 04:11
29 Jul 2017, 08:22
29 Jul 2017, 13:23
29 Jul 2017, 16:33
30 Jul 2017, 08:08
Our new proposal
We have proposed a Defined Benefit cash balance scheme, following extensive conversations with our unions over many months.
Every year, the Company would contribute 15.6% of pensionable pay. Within this contribution, we now propose increasing the Company’s contribution to members’ retirement benefits by 1% to 13.6%. The remaining 2% of the Company’s contribution will go to other member benefits, including death in service and ill-health benefits.
Members would also have the choice to join an improved Defined Contribution scheme instead. For some members, this could be a better option.
Members can choose to join an improved Defined Contribution scheme
We are also giving Plan members a choice. You could join a Defined Contribution scheme instead, which would also be set up in a new section of the Plan. We propose increasing the Company’s contribution by 1% to 13.6% compared to when we last updated you.
For some members this could be a better option. It will depend on a range of factors such as your age.
Royal Mail Defined Contribution Plan
In addition, for members of the Royal Mail Defined Contribution Plan (RMDCP), from 1 April 2018, we are proposing increasing the Company standard contribution by 1% in each tier, up to a maximum of 10%.This is very good compared to contributions that other large UK employers make to their Defined Contribution schemes.
6. How would pensionable pay be calculated under the proposed Defined Benefit cash balance scheme?
Under the new Defined Benefit cash balance scheme proposal, there would be the same definition of pensionable pay as under the current Plan.
Pensionable pay is made up of basic pay plus, in some cases, pensionable allowances and pensionable bonuses. Section C members – who make up the majority of Plan members – then have £3,328 deducted (the Lower Earnings Deduction) every year.
30 Jul 2017, 10:12
30 Jul 2017, 16:02
30 Jul 2017, 17:19
cloherty1976 wrote:Question Robert T. I have 30 years pension contributions so on a basic of about £33000 and £31000 pensionable will I receive a pension of 20/60 as final salary? This is the way I see it as I paid 20 years up until 2008. So in my assumption I will receive £10000 per year on my first part of pension if I complete 40 years service and take it at 60 years old?
31 Jul 2017, 12:11
RobertT wrote:cloherty1976 wrote:Question Robert T. I have 30 years pension contributions so on a basic of about £33000 and £31000 pensionable will I receive a pension of 20/60 as final salary? This is the way I see it as I paid 20 years up until 2008. So in my assumption I will receive £10000 per year on my first part of pension if I complete 40 years service and take it at 60 years old?
Your NRA60 relates to service up to 31st March 2010, so that includes the first two years of the CARE/CSDB scheme aswell as the final salary scheme post 2008. What you’ve accrued to date is shown on your annual statement!
With 30 years service you’re on the cusp of being in section B or C! Under the original DC pension proposals section B would continue to increase/decrease with wages, while section C would increase with inflation. But those proposals may still change.
31 Jul 2017, 21:23
02 Aug 2017, 17:03
cloherty1976 wrote:Thanks for the reply and started in 88 so in C. So I take it's not the same final salary as when I started for the first 20 years.. I thought by my calculations I would say be on £50000 by then and get 1/3 of the 60% pension . In my terms £16666 + whatever you get for the rest of my pension.
02 Aug 2017, 18:32