Section C Aged 60 benefits - Capita / RMPP split

[upmayo]

Hi,

I have been getting more confused by my pension statements each year. I track the expected increase from the Sept inflation numbers but don't see that due to changes in the RMPP elements of age 60. Does anyone see the same?

e.g. this year my capita benefit rose by RPI - 2.7% - but my overall age60 benefit only rose by 1.26% due to changes in the RMPP element of Age60. Is this expected? The RMPP age 60 portion seems to move about each year - always downwards - so my overall Age60 benefit is not getting the full inflation increase any year. Changes are hard to track further back that the last 4/5 years as the format of the statements changed.

Is this a common thing? Will be raising a query with RMPP but just wanted to check if this was isolated.

Ta.

[FAB]

Are you still working or retired? How old are you? Which scheme are you in - Section B or C?

[upmayo]

Section C - and still working (just hanging in there)..

[freespeech]

Section C - and still working (just hanging in there)..

Don't forget a statement received in September would have been for the April the year before through to the end of March for that same year (so 18 months ago through to 6 months ago). Are you "lining up" the correct increases?

[RobertT]

Hi,

I have been getting more confused by my pension statements each year. I track the expected increase from the Sept inflation numbers but don't see that due to changes in the RMPP elements of age 60. Does anyone see the same?

e.g. this year my capita benefit rose by RPI - 2.7% - but my overall age60 benefit only rose by 1.26% due to changes in the RMPP element of Age60. Is this expected? The RMPP age 60 portion seems to move about each year - always downwards - so my overall Age60 benefit is not getting the full inflation increase any year. Changes are hard to track further back that the last 4/5 years as the format of the statements changed.

Is this a common thing? Will be raising a query with RMPP but just wanted to check if this was isolated.

Ta.

For most people, any RMPP Age60 benefits they have will relate to pension accrued 2008-2010 and the amount is probably quite small.

If you have any RMPP Age60 at all, it means your final salary pay increased by more than the rate of inflation between 2012 and statement date, or your leaving date for those no longer working for RM.
The RMPP are responsible for paying any increases which are above inflation.

As the rate of inflation changes each year, the amount of Age60 benefits the RMPP pays can change aswell.

If your RMPP Age60 benefits are lower than they were previously or they're at £0, it means the rate of inflation is lower than the increases in your final salary pay, and so the RMSPS are responsible for paying all of your Age60.

That's my understanding anyway, but the RMPP will hopefully confirm.