Pension cost of living increase

[SeanMc]

I'm section B and it has increased by 10%

[Thailand1]

Yes that's probably RMPP part but what about RMSPS increase?? Can anyone confirm please.

[robking]

Yes that's probably RMPP part but what about RMSPS increase?? Can anyone confirm please.

See my post of 17/3, that is a link to the rules of the RMSPS and they clearly say that Section A/B members pensions will be increased by the rate of inflation, the so called 'Treasury Order'
Here is said Treasury Order https://www.bing.com/search?q=treasury+ ... DL&PC=QI03

For section C members, the rules say that their pensions will be increased by RPI, not CPI as above, but with an upper limit of 5%

Over the years, RPI has risen faster than CPI. For example in 2022 the Treasury Order was 3.1% so that's what Section A/B got, whilst RPI was 4.9% which was what Section C got.

Section C is probably still a better bet in the long term, but this year is a rare opportunity for Section A/B members to get a bit back.

[FAB]

When they scrap RPI in a few years time I think Section C will go to CPIH which is nearly always lower than CPI. Disappointing but predictable!

[heapsy]

Yes that's probably RMPP part but what about RMSPS increase?? Can anyone confirm please.

See my post of 17/3, that is a link to the rules of the RMSPS and they clearly say that Section A/B members pensions will be increased by the rate of inflation, the so called 'Treasury Order'
Here is said Treasury Order https://www.bing.com/search?q=treasury+ ... DL&PC=QI03

For section C members, the rules say that their pensions will be increased by RPI, not CPI as above, but with an upper limit of 5%

Over the years, RPI has risen faster than CPI. For example in 2022 the Treasury Order was 3.1% so that's what Section A/B got, whilst RPI was 4.9% which was what Section C got.

Section C is probably still a better bet in the long term, but this year is a rare opportunity for Section A/B members to get a bit back.

Section C is nowhere near as good as section B. If what people are saying on here is true, their pension increases are twice that of section C which is capped at 5% RPI. And let's not forget, no lump sum built in.

[renrag40]

The accrual rate was 1/60th in Section C as opposed to 1/80th in Section B. So it's not all bad.
The main downside to Section C is the lower earning reduction...... its a double whammy that lives on in the DBCBS...... approximately £5 a week less employee contributions means £11.33 less paid in employer contributions each week. That mounts up over the years as can be seen in difference in the DBCBS amounts built up over the last 5 years.
The underlying truth about pensions is that the more that is paid in, the more you get out. People who are in the RMDC scheme should be paying more into pensions because RM is paying 10% not the 13.6% they are presently paying into the pensions of people who are lucky enough to bei in Sectin B and C .

[RobertT]

There's been debate on the merits of sections B and C on this forum before, and there are obviously differences. But personally I think comparing them is ultimately pointless!
You're in the section you're in based on when you joined and there's nothing you can do about it, so why moan?

Those that joined RM after April 2008 have a far inferior scheme to both sections B and C, which not only attracts less contributions from RM, but offers much less certainty in retirement.

Personally I think everyone should be paying more towards their retirement, as it's obvious from our annual statements, whichever scheme you're in, that the basic contribution level won't enable the majority of us to retire at a reasonable age.

[freespeech]

There's been debate on the merits of sections B and C on this forum before, and there are obviously differences. But personally I think comparing them is ultimately pointless!
You're in the section you're in based on when you joined and there's nothing you can do about it, so why moan?

Those that joined RM after April 2008 have a far inferior scheme to both sections B and C, which not only attracts less contributions from RM, but offers much less certainty in retirement.

Personally I think everyone should be paying more towards their retirement, as it's obvious from our annual statements, whichever scheme you're in, that the basic contribution level won't enable the majority of us to retire at a reasonable age.

Technically it's the date of joining the pension scheme and not the business. I didn't join for the first 9 months or so back in the 80's and, boy, I'm regretting that now.

[RobertT]

Technically it's the date of joining the pension scheme and not the business.

I thought that was what I said, but maybe I didn't word it very well?

I didn't join for the first 9 months or so back in the 80's and, boy, I'm regretting that now.

I missed out on section B by a few months, although I was automatically put in the pension from day one.
I could regret not becoming a postie a bit earlier, but what good would it do?

[fly-catchers]

I am still puzzled as to why my section C 2 years of Career Average pension at 60 was about £800 odd a year. While my friend who left at the same time but was in Section B is about £90 a year! Even allowing for the different calculations used and the default lump sum he gets and he also went for the full 25% lump sum it still seems low!

[rkss]

RMPSPS has 10% increase confirmed with them today if in section B

[Thailand1]

Your pension increase letter is on its way
18 April 2023
You will shortly receive your pension increase letters and P60 advice.

If you’re paid monthly this will be in late April or if you’re paid quarterly this will be in May.

How much will I get?

Section A/B members - the basic rate of increase to your pension is 10.1% for the year

Section C members - the basic rate of increase to your pension is 5% for the year. Pension increases are applied using different rules and, to help you understand, please see the sections below. If you retired part way through the year, or if your pension has a Guaranteed Minimum Pension (GMP) element, you will only receive part of the full increase. If your pension started being paid after 27 March 2022, or you are under 55 years of age, you will not be eligible for an increase.
GMP - This is the portion of your benefits that the RMSPS must pay because you were contracted out of the Additional State Pension (ASP - also known as the second state pension or SERPS) between 1978 and 1997. While you were contracted out, you did not build up ASP and instead the RMSPS agreed to pay you a guaranteed minimum level of benefits.

Pre-88 GMP - This is the GMP you built up before 1988. We do not increase your pre-88 GMP if you reached State Pension Age before 6 April 2016. Click here for more details

Post-88 GMP - This is the GMP you built up after 1988. This year your post-88 GMP will increase by 3%. For more information about how your post-88 GMP increases click here.

P60 – what is it, and why do I need it?
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You’ll need your P60 if you need to:

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If you think your P60 is wrong, please contact HMRC.

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