ANNOUNCEMENT : ROYAL MAIL EMPLOYMENT POLICIES (AGREEMENTS) AT A GLANCE (UPDATED 2017)... HERE

ANNOUNCEMENT : CHRISTMAS & NEW YEAR ARRANGEMENTS 2017/18 INCLUDING PAY ARRANGEMENTS... HERE

ANNOUNCEMENT : SEVERE WEATHER THREADS : UPDATED 2017... HERE


DC RM contributions

03 Dec 2017, 12:37

I am in the Defined contribution scheme & have opted to take benefits at age 66 which is one year after I could receive them.
Do Royal Mail automatically cease contributions at age 65 even if I decided to carry on working until age 66.


DC RM contributions

03 Dec 2017, 13:38

Going by the DC plan guide, it has a normal retirement age of 65, but you can increase that if you want to. Or you could also access your pension anytime after age 55 if you choose!

I assume if you have increased your NRA to 66 and you’re still working for RM, you will continue to get the employer contributions.

A call/email may be your best option to make sure.

All the plan details are here.

DC RM contributions

03 Dec 2017, 15:23

RobertT wrote:Going by the DC plan guide, it has a normal retirement age of 65, but you can increase that if you want to. Or you could also access your pension anytime after age 55 if you choose!

I assume if you have increased your NRA to 66 and you’re still working for RM, you will continue to get the employer contributions.

A call/email may be your best option to make sure.

All the plan details are here.


Thanks for the response Robert T . I have raised my NRA to 66 in line with my state pension age (2022) & still working for RM but probably may have to work on past SPA.
I suppose my question would apply to both DC & DB in that if you work past your state pension age would RM & employee still continue to contribute to the schemes until the employee chooses to take the pension, which could be when you leave.

Or as the DC Plan states;

The Plan’s Normal Retirement Age is 65. However, you
can take your benefits from age 55 or earlier if you are ill
and cannot work. You don’t have to take your benefits
until age 75 at the latest.

I will email RM service team zurich as you advise

DC RM contributions

03 Dec 2017, 16:36

I suppose my question would apply to both DC & DB in that if you work past your state pension age would RM & employee still continue to contribute to the schemes until the employee chooses to take the pension, which could be when you leave.


There used to be a time when we were forced to retire at 65, but that is no longer the case and we can now work as long as we want to.

Reaching SPA is irrelevant as it’s just when we’re entitled to claim the state pension. There is nothing stopping anyone from carrying on working beyond SPA if they choose to. It is also possible to defer the state pension past SPA, in return for a higher amount, although whether that’s a good thing to do is debatable and would depend on the individual.

The DB scheme currently has a limit of 45 years contributions into the scheme, but under the latest pension proposals that was to be scrapped. I also think there used to be a 45 year limit with the DC scheme, but there doesn’t seem to be any mention of it in the plan guide I linked to earlier.

So I think the only practical limit is that you can work as long as you want to and pay into a pension(recieving employer contributions), but you will have to take your pension by age 75 at the latest.

DC RM contributions

03 Dec 2017, 18:25

RobertT wrote:
I suppose my question would apply to both DC & DB in that if you work past your state pension age would RM & employee still continue to contribute to the schemes until the employee chooses to take the pension, which could be when you leave.


There used to be a time when we were forced to retire at 65, but that is no longer the case and we can now work as long as we want to.

Reaching SPA is irrelevant as it’s just when we’re entitled to claim the state pension. There is nothing stopping anyone from carrying on working beyond SPA if they choose to. It is also possible to defer the state pension past SPA, in return for a higher amount, although whether that’s a good thing to do is debatable and would depend on the individual.

The DB scheme currently has a limit of 45 years contributions into the scheme, but under the latest pension proposals that was to be scrapped. I also think there used to be a 45 year limit with the DC scheme, but there doesn’t seem to be any mention of it in the plan guide I linked to earlier.

So I think the only practical limit is that you can work as long as you want to and pay into a pension(recieving employer contributions), but you will have to take your pension by age 75 at the latest.


I was aware that retirement age is no longer applicable & as you know additional State pension at SPA cannot be accrued as you cease paying National Insurance. Similarly there may be an age limit on further contributions for RM pensions.
The service indicated reply would be within 10 days. I will post their response

DC RM contributions

03 Dec 2017, 19:03

rogersh wrote:
......as you know additional State pension at SPA cannot be accrued as you cease paying National Insurance.


Although you don't accrue further state pension after SPA, by formally deferring your state pension by at least 9 weeks you get an increase in the amount of pension that you eventually receive https://www.gov.uk/deferring-state-pension/what-you-get

If you reach State Pension age on or after 6 April 2016

Your State Pension will increase every week you defer, as long as you defer for at least 9 weeks.

Your State Pension increases by the equivalent of 1% for every 9 weeks you defer. This works out as just under 5.8% for every full year.

The extra amount is paid with your regular State Pension payment.



Example:
You get £159.55 a week (the full new State Pension). This works out as £8,296.60 a year.

By deferring for one year, you’ll get an extra £479 a year (just under 5.8% of £8,296.60).

DC RM contributions

04 Dec 2017, 13:26

rogersh wrote:
RobertT wrote:
I suppose my question would apply to both DC & DB in that if you work past your state pension age would RM & employee still continue to contribute to the schemes until the employee chooses to take the pension, which could be when you leave.


There used to be a time when we were forced to retire at 65, but that is no longer the case and we can now work as long as we want to.

Reaching SPA is irrelevant as it’s just when we’re entitled to claim the state pension. There is nothing stopping anyone from carrying on working beyond SPA if they choose to. It is also possible to defer the state pension past SPA, in return for a higher amount, although whether that’s a good thing to do is debatable and would depend on the individual.

The DB scheme currently has a limit of 45 years contributions into the scheme, but under the latest pension proposals that was to be scrapped. I also think there used to be a 45 year limit with the DC scheme, but there doesn’t seem to be any mention of it in the plan guide I linked to earlier.

So I think the only practical limit is that you can work as long as you want to and pay into a pension(recieving employer contributions), but you will have to take your pension by age 75 at the latest.


I was aware that retirement age is no longer applicable & as you know additional State pension at SPA cannot be accrued as you cease paying National Insurance. Similarly there may be an age limit on further contributions for RM pensions.
The service indicated reply would be within 10 days. I will post their response


I have received this response today.

Re: DC Scheme contributions cessation date

"Thank you for your email.

I can confirm that as long as you work for Royal Mail you are eligible to pay into the plan."

Zurich Royal Mail Service Team

DC RM contributions

04 Dec 2017, 15:48

:thumbup :thumbup :thumbup

DC RM contributions

04 Dec 2017, 18:07

RobertT wrote::thumbup :thumbup :thumbup


Robert it does appear :thumbup but i have now sent another email as follows to be certain.

Can you further clarify that Royal Mail will also pay contributions into the plan at same, or similar, percentage rate at present as long as I work with Royal Mail.

DC RM contributions

06 Dec 2017, 16:16

rogersh wrote:
RobertT wrote::thumbup :thumbup :thumbup


Robert it does appear :thumbup but i have now sent another email as follows to be certain.

Can you further clarify that Royal Mail will also pay contributions into the plan at same, or similar, percentage rate at present as long as I work with Royal Mail.


Clarification by RM Service team;

"Yes as long as you are employed and contributing to the plan Royal Mail will also contribute, the current rate if you are paying 6% Royal Mail will pay 9%"

Of course a major change is pending as the post by Dingo explains;

1. On Pensions, Royal Mail have agreed to the principle of one pension scheme for all CWU members. This will be a wage in retirement collective DC scheme.

However this will need a law change. The select committee are already supporting such a scheme and Royal Mail and the CWU will lobby to get this new law passed as soon as possible.

Both parties have also agreed that pensionable pay will consist of all pay and pensionable allowances.

This will mean that the lower earnings limit will cease for ex POPS scheme members and that the DC scheme will for the first time have pensionable allowances included in their pensionable Pay once the new scheme is introduced.

Negotiations have also discussed what the interim and transitional arrangements will be until the legislative framework has changed.

Extending the scheme is one option but Royal Mail have offered that DB members could as an interim measure transfer into the Defined Benefit cash balance scheme ( DBCBS ). Royal Mail would transfer anyone in the DC scheme who has done 5 or more years into the DBCBS.

Additionally, Royal Mail would auto enrol all current DC scheme members to the highest employer contribution tier of 10% once they have done 12 months in the nursery scheme.

Previous page Next page


Page 1 of 1