Pension proposals in new agreement

cstf · Post by **cstf** » 01 Feb 2018, 19:22

Just noticed in the pension proposals in the new agreement that the NRA (normal retirement age ) is 67 , when I started in 1992 the NRA was 60 , it then went up to 65 and now 67 , I just got hit with the latest change to the state pension 68 , but thought nevermind I'll have all my royal mail pension by 65 , can't see me being able to do this job until I'm 67 and I think whoever negotiated that part of the deal needs there arse kicked.

Celgar · Post by **Celgar** » 01 Feb 2018, 19:33

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.

comeracing · Post by **comeracing** » 01 Feb 2018, 22:55

im 45 cant see me lasting until im 50,never mind 67

koolishy67 · Post by **koolishy67** » 02 Feb 2018, 05:39

50-55 max for me.

ewancurze · Post by **ewancurze** » 02 Feb 2018, 12:08

Right.I will get my state pension at 66.
Do the new proposals mean that I won't get my RM one untill I am 67?? I was banking on going at 65 getting my RM pension (if I last that long)
This REALLY needs to be highlighted before we vote as when I mentioned it in the office today no-one had noticed!

Post by **RobertT** » 02 Feb 2018, 13:58

ewancurze wrote:Right.I will get my state pension at 66.
Do the new proposals mean that I won't get my RM one untill I am 67?? I was banking on going at 65 getting my RM pension (if I last that long)
This REALLY needs to be highlighted before we vote as when I mentioned it in the office today no-one had noticed!

Assuming you’re in the RMPP and not the RMDCP:

The NRA60 will be exactly as now, and you can take it without reduction at 60.

The NRA65 will be exactly as now except with the addition of the transitional DB Cash Balance scheme, which you can take without reduction at 65.

The CDC will accrue from its inception date(pending legislation) and will have an NRA of 67.

If you take any of the 3 pensions above before their NRA, you will face an actuarial reduction, which is normally 5% per year.

The legal minimum age to take any pension is currently 55.

ewancurze · Post by **ewancurze** » 02 Feb 2018, 15:25

RobertT wrote:
ewancurze wrote:Right.I will get my state pension at 66.
Do the new proposals mean that I won't get my RM one untill I am 67?? I was banking on going at 65 getting my RM pension (if I last that long)
This REALLY needs to be highlighted before we vote as when I mentioned it in the office today no-one had noticed!
Assuming you’re in the RMPP and not the RMDCP:

The NRA60 will be exactly as now, and you can take it without reduction at 60.

The NRA65 will be exactly as now except with the addition of the transitional DB Cash Balance scheme, which you can take without reduction at 65.

The CDC will accrue from its inception date(pending legislation) and will have an NRA of 67.

If you take any of the 3 pensions above before their NRA, you will face an actuarial reduction, which is normally 5% per year.

The legal minimum age to take any pension is currently 55.

Thanks for the info,this Pension lark is getting to be a bit of a lottery,I have about 3 from other jobs as well (all small)......speaking of Lottery.....Mmmm.....Euro tonight,may be my best chance!

stoneybroke · Post by **stoneybroke** » 02 Feb 2018, 16:56

ewancurze wrote:Right.I will get my state pension at 66.
Do the new proposals mean that I won't get my RM one untill I am 67?? I was banking on going at 65 getting my RM pension (if I last that long)
This REALLY needs to be highlighted before we vote as when I mentioned it in the office today no-one had noticed!

Agree with this. Funny how the union's headlines were all about the 5% rise, shorter working week etc. Think this part of the deal was trying to be sneaked in.
I just hope before the vote that we get a full rundown of all the agreement and not just the parts that they want to help sell it to us.
Also, if the pension was explained in laymans terms it would be a good help, as I for one, find it all very confusing.

Post by **TrueBlueTerrier** » 02 Feb 2018, 16:59

stoneybroke wrote:[
I just hope before the vote that we get a full rundown of all the agreement and not just the parts that they want to help sell it to us.

The full agreement is already on the site. In fact, I have spent the best part of the last 24 hours digesting it. Please read as you suggest without influence from anyone (me included) and make your decision on your interpretation.

stoneybroke · Post by **stoneybroke** » 02 Feb 2018, 17:09

TrueBlueTerrier wrote:
stoneybroke wrote:[
I just hope before the vote that we get a full rundown of all the agreement and not just the parts that they want to help sell it to us.
The full agreement is already on the site. In fact, I have spent the best part of the last 24 hours digesting it. Please read as you suggest without influence from anyone (me included) and make your decision on your interpretation.

I know that TBT but I must of spoke to 20 ish workmates this morning and I was the only one that was aware of the age 67 pension ( and that was because I had read it on here).
Everybody knew about the 5% rise, the shorter working week etc. But nobody knew about this pension issue. As I said, I just hope the bad parts of the deal are highlighted by the Union and not just the good.

Post by **TrueBlueTerrier** » 02 Feb 2018, 17:25

But the NRA67 is only for the new CDC Pension if it comes in. The Transitional one has an NRA of 65, and any pension rights already accrued will keep their NRA unchanged.

So that means if you like me you've been at RM since they closed the C scheme to new members you'll get 4 pensions at their NRA ages. The final salary, the Career average, the transitional and the CDC (if adopted).

In essence, the headline of changing the NRA to 67 looks poor, and it is, but the effect is mitigated somewhat by the pensions we have already locked in.

deadbox · Post by **deadbox** » 02 Feb 2018, 17:57

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.

NRA60 figure, do i get this automatically at 60 ? (even if i continue to work + pay into the plan )
NRA65 figure, does this figure replace the amount i get from NRA60 ? OR do I get both added together ?
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

nodboy · Post by **nodboy** » 02 Feb 2018, 19:06

TrueBlueTerrier wrote:But the NRA67 is only for the new CDC Pension if it comes in. The Transitional one has an NRA of 65, and any pension rights already accrued will keep their NRA unchanged.

So that means if you like me you've been at RM since they closed the C scheme to new members you'll get 4 pensions at their NRA ages. The final salary, the Career average, the transitional and the CDC (if adopted).

In essence, the headline of changing the NRA to 67 looks poor, and it is, but the effect is mitigated somewhat by the pensions we have already locked in.

Looks poor it is poor, in it's final conception you will lose 10% of your FUTURE pension (and lump sum) if you go at 65 which is a lot if you are 40 years old.....

cstf · Post by **cstf** » 02 Feb 2018, 19:13

This isn't about reading the agreement and voting according to your interpretation , you shouldn't have to interpret it , it should be written in plain enough english so there's no room for ambiguity , as for it only being NRA 67 for the new pension , well I for one would have another 20 years to work to get that , so i would have to work 2 years extra whilst still paying into what is a worse scheme than the defined benefit scheme I'm in just now.

BeamishStout · Post by **BeamishStout** » 02 Feb 2018, 19:29

deadbox wrote: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

deadbox wrote: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)

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

No and Yes.

deadbox wrote: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