New pension scheme.

[RobertT]

Thank you....can I access my rmpp pension at sixty when I retire?...also can I take my money 4life avc same time

Yes.
Your options with your existing RM pension / AVC's aren't changing.

[Hyrrokkin]

Hi all,
I ve been in the flexiplan for the last 4/5 years contributing £50 a month.
Obviously now that will cease in the coming months due to the new pension scheme coming in.I plan to retire in the next 6/years.
We Obviously have some other options to choose from now.
Either the Lump sum booster or the avc.
Which one would be better to invest in?
All replies much appreciated.
TrickyTreeshill

Both if you can afford to but definitely the LSB which attracts an extra 1% from RM. Personally I will be doing both with as much as I can afford going into the AVC. This new AVC should be much easier to vary the amounts you pay each week/month by being able to make changes online through the People App tile.

Let's hope so - been waiting nearly 7 weeks for RMPP to change my current Flexiplan AVC weekly amount (they received the form late May).
Standards are slipping used to be much quicker.

This happened to me, time before last. They told me it would take place in the next pay cycle. I told them I wasn't paid monthly. |Deafening silence at the other end. When they did rectify it, a department manager actually rang me as I was pushing my HCT on my way to my walk.
The next time, they were back to normal. Trouble is, it can cost us through loss of PSE.
This new system is much better.

I just phoned them - was told there was a backlog and would get a call back in a few days.
I don't think i will get the call - not that it matters just want it changed...not good enough.
If the new AVC's weekly/monthly amounts can be changed online then great much better and quicker - let us wait and see.

[claretandblue]

Some things to come out of the Cwu live about pensions, there's a 1.5bn surplus in rmpp, and they want to use it to reduce the NRA 67. Also they will look to merge the new pension with the existing DC scheme and the cash balance scheme.

[RobertT]

Some things to come out of the Cwu live about pensions, there's a 1.5bn surplus in rmpp, and they want to use it to reduce the NRA 67. Also they will look to merge the new pension with the existing DC scheme and the cash balance scheme.

So in one LTB they say all benefits will stay in the RMPP and on YouTube they say they want to merge them with the RMCPP?

I don't think they know what they're talking about!

[claretandblue]

Some things to come out of the Cwu live about pensions, there's a 1.5bn surplus in rmpp, and they want to use it to reduce the NRA 67. Also they will look to merge the new pension with the existing DC scheme and the cash balance scheme.

So in one LTB they say all benefits will stay in the RMPP and on YouTube they say they want to merge them with the RMCPP?

I don't think they know what they're talking about!

That's as of now, they said merging was an aim for the future.

[kazardaimenu]

So can you access any of this before you reach 67 or no? Couldn’t imagine doing this job for 30 odd years.

[claretandblue]

So can you access any of this before you reach 67 or no? Couldn’t imagine doing this job for 30 odd years.

Not the new scheme that starts on 7th October.

[RobertT]

Some things to come out of the Cwu live about pensions, there's a 1.5bn surplus in rmpp, and they want to use it to reduce the NRA 67. Also they will look to merge the new pension with the existing DC scheme and the cash balance scheme.

So in one LTB they say all benefits will stay in the RMPP and on YouTube they say they want to merge them with the RMCPP?

I don't think they know what they're talking about!

That's as of now, they said merging was an aim for the future.

Yes, I know.

[RobertT]

So can you access any of this before you reach 67 or no? Couldn’t imagine doing this job for 30 odd years.

You can take the pension and lump sum anytime after the legal minimum access age(currently 55), but they will be reduced.
Or you can transfer either or both elements to a personal pension, for more flexible choices.

Full details are on the RMCPP website.

[kazardaimenu]

Thanks.

[Wullie10]

How do you plan for your retirement if you don't know how much your pension will be?

You're annual statements should give you an idea. Check you've paid full NI contributions for the full state pension.

The new pension doesn't guarantee a sum. It may and will vary. How do you plan for that?
I know what my state pension will be. That isn't what the title of this thread is.

Ah sorry see what you mean. I doubt the majority of postmen starting the new scheme will be in it for more than 10 years so it's not going to be a life changing amount up or down..

[NWpostie]

Some things to come out of the Cwu live about pensions, there's a 1.5bn surplus in rmpp, and they want to use it to reduce the NRA 67. Also they will look to merge the new pension with the existing DC scheme and the cash balance scheme.

So in one LTB they say all benefits will stay in the RMPP and on YouTube they say they want to merge them with the RMCPP?

I don't think they know what they're talking about!

That's as of now, they said merging was an aim for the future.

Yes, I know.

If they merge I hope the NRA will remain at 60 and ideally the NRA65 is reduced to 60 , not revised upward

[heapsy]

Some things to come out of the Cwu live about pensions, there's a 1.5bn surplus in rmpp, and they want to use it to reduce the NRA 67. Also they will look to merge the new pension with the existing DC scheme and the cash balance scheme.

So in one LTB they say all benefits will stay in the RMPP and on YouTube they say they want to merge them with the RMCPP?

I don't think they know what they're talking about!

That's as of now, they said merging was an aim for the future.

Yes, I know.

If they merge I hope the NRA will remain at 60 and ideally the NRA65 is reduced to 60 , not revised upward

Can't see that happening. 1, I think it's now legally binding, and 2, it would cost RM more money. The exact opposite of what they want to achieve, by changing the pension.

[freespeech]

So can you access any of this before you reach 67 or no? Couldn’t imagine doing this job for 30 odd years.

Not the new scheme that starts on 7th October.

You can access any private pension from 55. Obviously it will be reduced if you don't meet the scheme NRA.

[RobertT]

Some things to come out of the Cwu live about pensions, there's a 1.5bn surplus in rmpp, and they want to use it to reduce the NRA 67. Also they will look to merge the new pension with the existing DC scheme and the cash balance scheme.

So in one LTB they say all benefits will stay in the RMPP and on YouTube they say they want to merge them with the RMCPP?

I don't think they know what they're talking about!

That's as of now, they said merging was an aim for the future.

Yes, I know.

If they merge I hope the NRA will remain at 60 and ideally the NRA65 is reduced to 60 , not revised upward

Can't see that happening. 1, I think it's now legally binding, and 2, it would cost RM more money. The exact opposite of what they want to achieve, by changing the pension.

Having thought about this a bit, I think the most likely thing to happen would be to give people the ability to transfer other pensions into the RMCPP. So those in the DBCBS or RMDCP and potentially other DC schemes could have a different option at retirement.
No merger of schemes would be necessary, which isn't a viable proposition anyway in my opinion.

There are also government plans to legislate for de-accumulation only CDC schemes, giving every holder of a DC pension another choice instead of the normal drawdown or annuity.
I don't think they'd be able to impose any particular NRA other than the legal minimum access age, so that's potentially something to consider too.
If that becomes an option, it's a while away yet!

As I understand it, about £600 million of the surplus is actually 'attached' to the Post Office section of the RMPP, so I'm not sure that would be on the table for anything RM related?
Plus the RMPP trustees would need to approve any surplus transfer. I'm not saying they won't, but it's their job to look after the interests of RMPP members first.

As for reducing the RMCPP NRA down to 65, I think it could be the thin end of the wedge in terms of the long term viability of the scheme.

Putting in a nice big lump of cash upfront may well fund an NRA reduction for a while, and I'm sure it would be invested alongside all the other plans assets. But would the investments on that money be able to keep pace with pension accruals over the long term considering they'll be paid out for 2 years longer? If not, that surplus cash will slowly reduce until it's all used up. Resulting in a watering down of the benefits payable from then on.
Depends how long the RMCPP is open for, I suppose.

I'll be interested to see what, if anything, actually happens....

Reducing the NRA of any existing benefits via the RMPP or RMSPS isn't going to happen and isn't really worth talking about.