Does supplement increase?

[Wullie10]

I was quoted £2k a year supplement if I left RM. Does this increase every year in line with the pension or is it fixed till state retirement age ?

[FAB]

It goes up by the same amount as your pension. RPI from September capped at 5%

[NorthernBoy]

It goes up by the same amount as your pension. RPI from September capped at 5%

This is good to know. For some reason I thought the supplement was frozen and did not increase

[Wullie10]

It goes up by the same amount as your pension. RPI from September capped at 5%

This is good to know. For some reason I thought the supplement was frozen and did not increase

Me too cheers

[NWpostie]

£2k over a year is worth roughly £38.46 a week, a fairly decent enough top up

[Wullie10]

£2k over a year is worth roughly £38.46 a week, a fairly decent enough top up

About £31 after tax but not bad.

[derekm]

Sorry to ask guys what’s the supplement you’re talking about ?

[RobertT]

The supplement is an amount paid to section C members between taking their RM pension and reaching state pension age, but only if they've left the company.

Their pensions were worked out using pensionable pay minus the Lower Earnings Deduction. The supplement was accrued at the rate of 1/60th of the LED for each year of employment.

Section C members also had the option to pay into Bonusplan, which was also linked to the LED - payments were 4.5% of that amount. RM also contributed up to a max of 100% matching.

The LED used to rise with inflation each year, but was frozen at £3,328 around 1999/2000 if I remember correctly. So the maximum you could pay into Bonusplan in any one year was £150(give or take).

[derekm]

The supplement is an amount paid to section C members between taking their RM pension and reaching state pension age, but only if they've left the company.

Their pensions were worked out using pensionable pay minus the Lower Earnings Deduction. The supplement was accrued at the rate of 1/60th of the LED for each year of employment.

Section C members also had the option to pay into Bonusplan, which was also linked to the LED - payments were 4.5% of that amount. RM also contributed up to a max of 100% matching.

The LED used to rise with inflation each year, but was frozen at £3,328 around 1999/2000 if I remember correctly. So the maximum you could pay into Bonusplan in any one year was £150(give or take).

Cheer Robert

[Wullie10]

Yes I don't understand that at all but I'm greatful for the extra cash.

[FAB]

I found by chance that if you had transferred a pension from a previous employer to RM and got the agreed amount added. That amount had its own bit of supplement added and that bit was paid straightaway even if you still were working at RM!

[roadrunner bill]

What happens to the supplement..

If you are receiving your pension while still employed at royal mail..

Then leave.. do you then start to recieve the supplement after leaving..

[RobertT]

Yes, in that scenario section C members will be entitled to the supplement until state pension age.

It's probably best to tell both the RMPP and RMSPS when you leave, as I'm not sure if it will be paid automatically.

[roadrunner bill]

Thank you.

[Wullie10]

I thought its just RMSPS that pays the supplement but best inform both. I think i read it can take up to 16 weeks to arrive and probably a few phone calls.