Maximum pension pot

[IanLester]

When I'm 63 I will have paid into my pension for 45 years. Does anyone know, with the new pension scheme coming in, can I still pay into my pension after the 45 years? I will hopefully still be with Royal Mail until at least the age of 67

[yellowbelly]

Pay into the CDC - yes, continue paying into your current RM pension plan, no, see this from the RM website:

Could I keep saving into my current plan?

Members of RMDCP who had been with Royal Mail for less than a year would be able to keep saving in that plan until they reached a year’s service. No one else would be able to save into RMDCP and no one would be able to save into RMPP.

What would happen if I didn’t want to join the Collective Plan?

No one would have to join. If you chose not to and you were due to be automatically enrolled into a pension, you’d be enrolled into Nest.

Why would people not be able to carry on saving into RMPP or RMDCP?

Royal Mail and the unions agree that the Collective Plan should replace RMPP and RMDCP. There are 2 reasons for this:

We think the Collective Plan is fairer than the current plans

At the moment, Royal Mail pays in more for members of RMPP than RMDCP. With the Collective Plan, everyone builds up benefits the same way, with Royal Mail paying the same rate for every member.

We think the Collective Plan is simpler for members

The Collective Plan offers both an income for life and a cash lump sum, unlike RMDCP and the Cash Balance section of RMPP. This means that the Collective Plan takes away the need to make complicated decisions about how to use savings and make them last.

[heapsy]

It doesn't say anything about maximum number of years. When the last changes came in, RM changed the maximum number of years from 40 (full pension) to 45. I'd enquire nearer the time when we start getting more info, as it doesn't say either way.

[rogersh]

The copy of an email dated September 2021
consultationquestions

I am currently aged 65 & a member of the RMDCP.

In the current scheme, on remaining an employee with Royal Mail, I & RM would continue to pay contributions until I decided to leave anytime after my state pension age of 66.

My question therefore is;
Does the new Collective scheme offer the same arrangement if an employee continued to work past the age of 67.

Response;
Thank you for your email.

Yes, the start of the Collective plan would not affect when you can take any of your pension benefits and you can still take those benefits while you are still working. You could still take your Collective plan benefits before age 67, less an early retirement reduction or for as long as you are still working for RM and are contributing to the Collective plan you could continue to build up benefits after age 67. I hope this re-assuring.

[RobertT]

The RMPP member guide to benefits suggests you can have a maximum of 45 years membership of the RMSPS/RMPP combined, as of 31st March 2018. Which is when we stopped accruing any more pension and started building a lump sum via the DBCBS.

The CDC scheme will be separate from all existing RM pensions and can be paid into as long as you're an employee of RM, and after the NRA of 67.

The general pension rules change slightly after you reach the age of 75. You can still pay into a pension, but you wouldn't benefit from tax relief, which would make it far less attractive.
I would hope that nobody would still be working for RM at that age anyway.

[vmaxv4]

Sad to say I know of Manager’s & posties working well past 75

[billycat]

Ihave heard of men and women over the age of 75 still working in the mail centres, but never actually delivering the mail, in the last 18 months 6 have taken ihr the oldest was 55 out of a workforce of 59.

[david3595]

Ihave heard of men and women over the age of 75 still working in the mail centres, but never actually delivering the mail, in the last 18 months 6 have taken ihr the oldest was 55 out of a workforce of 59.

Northern Ireland’s oldest delivery postman retired aged 75 in October 2021. I know a few delivery posties who are approaching 70 but there are several aged 73 + in Mail centre.