Pension proposals in new agreement

[TheTrolleyMan]

I think up til now most posties look to retire entirely at 60 or maybe switch from full to part time and carry on a bit longer. Physically and maybe mentally speaking as well it will not necessarily be easy to carry on delivering much past 60. Whether it will still be economically possible to retire at 60 remains to be seen.

And this is the reason I'll be voting NO

[Aquarius]

Call me thick - which i am !

Why was the NRA decided at 67 - what is the reason ?

Why cannot it be 65

[RobertT]

Call me thick - which i am !

Why was the NRA decided at 67 - what is the reason ?

Why cannot it be 65

In practice they look at all the variables like accrual rate, contribution rates, expected investment returns, life expectancy rates, etc. Then they come up with a scheme that works in tandem with those variables, so it provides reasonably decent benefits for us while not being a financial burden to the RM for years to come.

It’s worth noting that the CWU’s original WinRS proposal had a NRA of state pension age. So that would have been 68 for some and possibly higher should the government increase the age again.

Plus an NRA of 67 will only apply to the CDC scheme when, or if it is implemented(pending legislation).

What you’ve already built up is not affected.

[NWpostie]

Some of the posties I know tends to peg out at 60 - 64 years old after retiring.

At 67 you would be lucky anyone is alive to claim NRA 67 !

[deadbox]

Can anyone please explain the pension to me please.
Im in plan "c" and will have 37 years in service @ 65 years old

I get a booklet every year from the pension fund telling me multiple figures and I am at a loss as to what i get when.

Read and re-read

https://www.royalmailpensionplan.co.uk/ ... e_2015.pdf

NRA60 figure, do i get this automatically at 60 ? (even if i continue to work + pay into the plan )

As you are 65 I'd have to assume you are NOT getting this already! Ring Chesterfield ASAP (Number in above guide)

NRA65 figure, does this figure replace the amount i get from NRA60 ? OR do I get both added together ?

No and Yes.

What about the "credits" + "blocks" amounts that talked about.
When do you get the lump sum ? Is it taxed ? and if so, at what rate ?
Anything else I should know about the pension

Thanks in advance

The guide above might answer most questions plus

https://www.royalmailpensionplan.co.uk/ ... .09.12.pdf

A big thankyou from me

[michris]

have any of the IHR conditions changed in this deal
as I suspect a lot more will be applying if the NRA rises
and if so would it be better to apply for it before the new deal kicks in

[General Mannerheim]

have any of the IHR conditions changed in this deal
as I suspect a lot more will be applying if the NRA rises
and if so would it be better to apply for it before the new deal kicks in

Have a look on page 12 of the agreement.

As a consequence of the closure of the current DB scheme it will be necessary to amend certain other collective agreements, in a way that is consistent with the spirit and intent of those agreements to reflect that the scheme will no longer pay augmented benefits on redundancy or ill health.

Sounds like the MTSF has been hooked or is going to be.

[RobertT]

Also on page 12 and page 11 it says:

Ill-health benefit - 50% of pensionable pay, less State benefits, payable for up to 3 years plus lump sum payment at the end of the 3 years, plus payment of accrued benefits.

This applies to both DBCB and CDC schemes.

[BoltonPostie]

Also on page 12 and page 11 it says:

Ill-health benefit - 50% of pensionable pay, less State benefits, payable for up to 3 years plus lump sum payment at the end of the 3 years, plus payment of accrued benefits.

This applies to both DBCB and CDC schemes.

Pensions confuse the feck out of me so please bare with me especially at this time after a few beers, but does that mean that if your going to be ill health retired that they will only give you 50% of your pension for 3 years? I.e say I would get £8000 a year pension would i then only get £4000? With me so far?

Secondly say I was ill health retired then presumably most people would be on some sort of benefit if they couldn't work like ESA or whatever the feck it's called now, so say I got the £73 quid a week for being on Esa a week thats £3,796 a year but it say above less state benefits so £4000 - £3796 leaves feck all doesn't it?

Or is it that you get your pension plus a 50% bonus on top for 3 years. See this is confusing me .?
Please be gentle I hate dealing with financial s**t.

[thegreatestfreddy]

I agree that the pensions section of the agreement is very difficult to quantify in terms of actual cash in your hand when you eventually get it !…

Just wanted to clarify… The new DBCB scheme (which comes into effect from April 2018 and is transitional), is that purely a cash lump sum only scheme ?… and if so does it pay out at the rate of 19.6% of pensionable pay for each year of service in that transitional scheme and say if runs for 5 years would pay out approximately 100% of pensionable pay at that point … say around £18,000 when taking into account our pensionable pay (whole time) less LEL ??

Hope someone knows !!

[stephen500]

The NRA pension you can take at 65, with an approx 10% reduction. I may be taking it at 60 with a 35% reduction. NRA 60 with no reduction and NRA 65 with a 25% reduction. I could leave the NRA67 till a bit later.

[thegreatestfreddy]

The NRA pension you can take at 65, with an approx 10% reduction. I may be taking it at 60 with a 35% reduction. NRA 60 with no reduction and NRA 65 with a 25% reduction. I could leave the NRA67 till a bit later.

The NRA67 pension may never even come about... from April onwards (2018) it will be the DBCB lump sum scheme that I referrred to above (until if the proposed CDC (NRA67) scheme comes about… which may take several years)

[thegreatestfreddy]

Another factor affecting us ‘oldies’ who have worked for RM for many years paying in to a pension which was described as ‘opted’ out may find that they need to work beyond 60 to be eligible for the New State Pension in its entirety … you may only have sufficient NI credits for a reduced state pension if you cease work at 60 (obviously not getting the state pension until 65,66.67,68 etc) ... I would recommend as I did you go to HMRC.GOV to check out your own NI record to find out if you will qualify for the whole amount of NSP ... currently around £161 a week

[thegreatestfreddy]

https://www.gov.uk/check-state-pension" onclick="window.open(this.href);return false;

Above is the link to the official site ....

[RobertT]

I agree that the pensions section of the agreement is very difficult to quantify in terms of actual cash in your hand when you eventually get it !…

Just wanted to clarify… The new DBCB scheme (which comes into effect from April 2018 and is transitional), is that purely a cash lump sum only scheme ?… and if so does it pay out at the rate of 19.6% of pensionable pay for each year of service in that transitional scheme and say if runs for 5 years would pay out approximately 100% of pensionable pay at that point … say around £18,000 when taking into account our pensionable pay (whole time) less LEL ??

Hope someone knows !!

The NRA pension you can take at 65, with an approx 10% reduction. I may be taking it at 60 with a 35% reduction. NRA 60 with no reduction and NRA 65 with a 25% reduction. I could leave the NRA67 till a bit later.

The transitional DBCB scheme will be a new section of the RMPP and will provide a lump sum to take along with your normal RMPP benefits, in a similar way to how AVC’s do. The relevant bit in the agreement states:

Normal Retirement Age – 65, although benefits will be payable from 60 without reduction if taken with existing NRA60 pension benefits.

As there is no benefit from deferring your NRA60 beyond 60, we will have two bites of the cherry as far as taking the DBCB unreduced is concerned – 60 or 65.

The CDC scheme will be implemented after the DBCB scheme, but only if the required legislation is granted. It’s the CDC scheme that will have an NRA of 67!