Cash balance fund

[garymgo]

Can anyone tell me what happens to the cash balance money when the new scheme eventually gets introduced.
Thanks

[heapsy]

It remains part of the NRA65 and will be used to fund the lump sum for that pension. Due to delays in the introduction of the CDC scheme, some of the Cash Balance scheme will almost certainly be taxed.

[garymgo]

Thanks
Just that a colleague seems to think it will be transferred into the new scheme and used to buy monthly income rather than lump sum.

[RobertT]

The Cash Balance/DBCBS is part of the RMPP, and is used to fund the lump sum when taking NRA65 benefits. That will continue to be the case.
It's covered here: https://www.myroyalmail.com/collective- ... t-benefits

It can also be transferred out to a personal pension, independently of taking NRA65.

However, there may be the theoretical possibility of being able to transfer the DBCBS into the new CDC scheme, at some point.
But there is currently no ability to transfer benefits between the existing RM pension schemes, and personally I doubt that will change once CDC is introduced.

That is mentioned here: https://www.myroyalmail.com/collective-plan
Where it states:

7. Can I transfer the benefits I’ve already built up into the new plan?
The decision as to whether transfer values would be accepted by the new Collective Plan will be made in the future.

[garymgo]

So, Are all current pension contributions going into the CB pot?

[RobertT]

So, Are all current pension contributions going into the CB pot?

Yes.

The NRA60 closed to future accrual in 2010 and the NRA65 in 2018.

Since 2018, everyone currently employed by RM and with those benefits, has been paying into the DBCBS.

[Postee2]

What does the cash balance fund invest in exactly, which funds etc, do we know ?

[RobertT]

What does the cash balance fund invest in exactly, which funds etc, do we know ?

The RMPP has about 50 different fund managers working for them, investing the money held in the pension and the DBCBS.

There's no info in the report and accounts on exactly where the DBCBS is invested, but it does show the asset classes it uses, aswell as the percentage in each.

I'm not sure when 2023's R & A's will be released, but here's the link to last years: https://www.royalmailpensionplan.co.uk/ ... -Final.pdf

[Postee2]

What does the cash balance fund invest in exactly, which funds etc, do we know ?

The RMPP has about 50 different fund managers working for them, investing the money held in the pension and the DBCBS.

There's no info in the report and accounts on exactly where the DBCBS is invested, but it does show the asset classes it uses, aswell as the percentage in each.

I'm not sure when 2023's R & A's will be released, but here's the link to last years: https://www.royalmailpensionplan.co.uk/ ... -Final.pdf

Can't say fairer than that. Looks like an absolute monster of diversification.

[jackipal]

Can you take all of your cash balance fund as a lump sum

[heapsy]

Can you take all of your cash balance fund as a lump sum

Yes, that's the idea.

[mags999]

Does anybody know if the cash balance sum is reduced for definite if you take it early

[milly]

What does the cash balance fund invest in exactly, which funds etc, do we know ?

The RMPP has about 50 different fund managers working for them, investing the money held in the pension and the DBCBS.

There's no info in the report and accounts on exactly where the DBCBS is invested, but it does show the asset classes it uses, aswell as the percentage in each.

I'm not sure when 2023's R & A's will be released, but here's the link to last years: https://www.royalmailpensionplan.co.uk/ ... -Final.pdf

Can't say fairer than that. Looks like an absolute monster of diversification.

Looks to be heavily invested into various types of debt from what I can see.
Glad I'm not in it.

[renrag40]

What does the cash balance fund invest in exactly, which funds etc, do we know ?

The RMPP has about 50 different fund managers working for them, investing the money held in the pension and the DBCBS.

There's no info in the report and accounts on exactly where the DBCBS is invested, but it does show the asset classes it uses, aswell as the percentage in each.

I'm not sure when 2023's R & A's will be released, but here's the link to last years: https://www.royalmailpensionplan.co.uk/ ... -Final.pdf

Can't say fairer than that. Looks like an absolute monster of diversification.

Looks to be heavily invested into various types of debt from what I can see.
Glad I'm not in it.

I estimate that since April 2018 until the end of March next year I will have contributed around £9,000 into the DBCBS....... it will have a value of just over £37,000 by then.
That to me is a mighty fine rate of return.
I'm glad I'm in it.

[freespeech]

What does the cash balance fund invest in exactly, which funds etc, do we know ?

The RMPP has about 50 different fund managers working for them, investing the money held in the pension and the DBCBS.

There's no info in the report and accounts on exactly where the DBCBS is invested, but it does show the asset classes it uses, aswell as the percentage in each.

I'm not sure when 2023's R & A's will be released, but here's the link to last years: https://www.royalmailpensionplan.co.uk/ ... -Final.pdf

Can't say fairer than that. Looks like an absolute monster of diversification.

Looks to be heavily invested into various types of debt from what I can see.
Glad I'm not in it.

I estimate that since April 2018 until the end of March next year I will have contributed around £9,000 into the DBCBS....... it will have a value of just over £37,000 by then.
That to me is a mighty fine rate of return.
I'm glad I'm in it.

Not really a "rate of return" in the true sense as you have left out the higher employer contribution. That said, I get your drift and, yes, it's great but with 6 years of it now it will outstrip all NRA65 lump sums so some of it will be taxable.