Paying off added years?

16 Jul 2017, 12:19

Is it possible to pay off your added years in one lump sum?
To take my final salary pension up to 40 years at age 60 I purchased just under 3 added years. I have been paying this for well over 20 years now.
In my 2016 statement it stated my balance of added years contract was 1 year 46 days.
Surely it has to be beneficial to pay this off, if it's possible before next year.

Paying off added years?

16 Jul 2017, 15:08

Addplan was mentioned in the Q&A’s section of the pension review booklet we got in January:

20. I am paying additional contributions to Addplan – what impact does the Company’s proposal have on me?
Under the Company’s proposal, you would not build up any further Addplan pension after 31 March 2018. The Addplan pension you have built up would be revalued in line with RPI (up to 5% a year), as is currently the case for active Plan members while you remain employed by Royal Mail or until you take your benefits. Unless you instruct otherwise, your Addplan contributions would continue, but as additional contributions to your DC retirement account instead.

From that, I don’t think it’s possible to pay off the balance of your Addplan before 31st March 2018.

Paying off added years?

16 Jul 2017, 17:36

Thanks, I'll have a word with pensions just to make sure.

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