New pension scheme

[garymgo]

Only expecting to work for another 2 1/2 years and I have joined the new pension scheme in October when it opened, just wondering if there is an option to transfer the full pot into a drawdown or take the complete pot as a lump some and not take a monthly income. I would expect it would only be a small monthly income so would rather have take the whole pot.
Thanks

[ted_e_bear]

Here's the plan website, you should have received a letter a few months ago with details how to register, had a wade through the site and I can't find your question regarding taking as a lump sum only but they've got options to contact them for any help or info.

https://www.rmcollectiveplan.com/home/

[RobertT]

Only expecting to work for another 2 1/2 years and I have joined the new pension scheme in October when it opened, just wondering if there is an option to transfer the full pot into a drawdown or take the complete pot as a lump some and not take a monthly income. I would expect it would only be a small monthly income so would rather have take the whole pot.
Thanks

The new RMCPP is split into two sections – the pension itself and the lump sum(inc booster).

You can transfer either or both into a personal pension for drawdown.

Full details are on the website - the Handbook is where you'll find what you're looking for!

[Hawkey99]

Just saw the video and it talked about an income for life.

I thought RM had closed the old schemes to move away from that ?

[RobertT]

Just saw the video and it talked about an income for life.

I thought RM had closed the old schemes to move away from that ?

The old schemes(for anyone joining before April 2008) were Defined Benefit, so they're based on wages and length of service and they increase with inflation each year.
The company have a potential liability to plug any holes in the finances should the schemes ever be in deficit.

The new scheme is Collective Defined Contribution(CDC), which aims to provide similar benefits to a DB pension but if there's not enough money in the pot, benefits might not go up and could go down accordingly.
There's no liability on the company other than the contributions they agree to pay in, just like an individual DC scheme. Although the running costs/admin are going to be higher.

[Dexydog]

I was very sceptical of the new plan.
Have to say I've just looked at the transfer value and it's at around £800 already with the 1% booster and part time hours.
Obviously it looks like this could potentially decrease given the liabilities of the scheme, but I wouldn't expect so if I transfer them when I leave in a few months.
Will report back on here when I get round to the transfer.