Transitional Support Arrangements

BeamishStout · Post by **BeamishStout** » 01 Feb 2018, 18:06

Taken from the proposed settlement. Not a very sexy title granted.

While we work to get the future scheme established, transitional support arrangements will be put into place. RMPP members during this transition period who take their NRA65 benefits and leave the company (at any stage) will receive from the company £750 which they can use towards the cost of obtaining financial advice on retirement.

Just don't know what to make of this - esp with me going in April...

Post by **RobertT** » 02 Feb 2018, 15:08

It sounds like they want to put in place a financial advice service for the RM pension, to try and make sure employees make the correct choices for them. While that’s in the process of being set up, they’ll give you a taxable £750 to find your own IFA. Seems straight forward enough!

I would guess you would be leaving too soon to qualify, especially as you would be accruing only a very small about of DB Cash Balance.

BeamishStout · Post by **BeamishStout** » 02 Feb 2018, 17:37

RobertT wrote:It sounds like they want to put in place a financial advice service for the RM pension, to try and make sure employees make the correct choices for them. While that’s in the process of being set up, they’ll give you a taxable £750 to find your own IFA. Seems straight forward enough!

It does but..... Wonder when this transition period starts? Presumably from 1st April 2018. Of course my date for taking NRA60 starts on 3rd April 2018 and I had intended taking NRA65 at the same time (with reductions obviously). No information given on how to apply for this £750 benefit as yet. (or is it automatic?)

RobertT wrote:I would guess you would be leaving too soon to qualify, especially as you would be accruing only a very small about of DB Cash Balance.

My leaving date is not set in stone as obviously I will want to see any back pay hitting my pay before I give required notice, so that might conceivably be early April before that happens in which case I will be some weeks into the new scheme. The detail on this transitional arrangement fee/advice money (call it what you will) just so vague ATM but should obviously assist people who intend retiring post April 2018. Hope I/we don't have to jump through hoops to get it!

Guess I will find out soon enough

BeamishStout · Post by **BeamishStout** » 05 Jul 2018, 12:03

Finally getting this payment on 6th July although I have felt it has been a long road (multiple emails and telephone calls) to get to this point considering I left the business 2 months ago! It is taxed and NIC so the net works out to be just over £500 in my case. So to anyone that has left RM since 31st March 2018 and has taken their NRA65 benefits (from RMPP) you can get this one-off payment although it might take more time than you might think.

Post by **rocky2** » 02 Aug 2018, 08:15

have just retired waiting for nra 65 pension to start when it does start who do I contact for this payment

BeamishStout · Post by **BeamishStout** » 02 Aug 2018, 09:14

rocky2 wrote:have just retired waiting for nra 65 pension to start when it does start who do I contact for this payment

Contact payroll not pensions but expect a long wait.....in my case just over 2 months. I contacted them as soon as I had received first pension payment and I had received their so called leaver's letter.

Remember to quote the all important part of the agreement:

RMPP members, who take their age 65 benefits and leave the company after 31st March 2018 will receive a one-off payment of £750 from the company which they can use towards the cost of obtaining financial advice on retirement

and state the dates that you have taken NRA65 and your 'last day of service' date. I'd also suggest that you email RM (via the normal pensions.helpline@royalmail.com) as the response was way better that the one I had using the normal pensions phoneline. Your email/snail mail should be directed towards the relevant department in HR - Pay Services (Proactive) @ Pond Street, Sheffield, S98 6HR and perhaps make that clear in the body of your email/mail.

Post by **rocky2** » 06 Dec 2018, 14:05

thank you beamish sent letter as you advised 2 weeks later I got my payment.i wonder how many people are missing out ? thanks to this forum

Hawkey99 · Post by **Hawkey99** » 07 Dec 2018, 01:11

Probably strange question but why is this payment due when you take your NRA 65 and not NRA 60.

Thanks

Post by **RobertT** » 07 Dec 2018, 16:45

Hawkey99 wrote:Probably strange question but why is this payment due when you take your NRA 65 and not NRA 60.
Thanks

Because that's what was decided during the prolonged 4 pillars negotiations!

Both parties issued booklets explaining the pensions issue and info on the transitional support arrangements are included in both:

RM's Pension Review Update:

RMPP members who take their age 65 benefits and leave the Company (at any age) after 31 March 2018 will receive a one-off payment of £750 from the Company, which they can use towards the cost of obtaining financial advice on retirement. This payment will be subject to income tax and National Insurance contributions. This payment will cease to apply once the transitional arrangements end, or new arrangements are agreed with the unions.

CUW's 4 Pillars of Security & Pay National Agreement:

It is recognised that employees’ pension arrangements and choices will become more complicated in future particularly in relation to NRA65 benefits payable on retirement from RMPP. As part of setting up the proposed future pension scheme, we will therefore investigate how we can best support members make their choices. While we work to get the future scheme established, transitional support arrangements will be put in place. RMPP members during the transition period who take their NRA65 benefits and leave the Company (at any age) will receive from the Company a payment of £750 (which will be subject to income tax and National Insurance contributions) which they can use towards the cost of obtaining financial advice on retirement. The payment will be replaced in due course once advice services for RMPP members are in place.

dannyboy · Post by **dannyboy** » 18 Dec 2018, 12:03

This is a copy of letter I received after writing to hr instead of all the time I waisted on phone.Thank you for your letter I received regarding the non payment of the financial advice allowance you were entitled to receive.i have investigated this error and can confirm that I have made this payment to you today and you can expect this to be in your bank account on Friday 21 December 2018. Please accept my apologies for this oversight.So finally will get money on 21 December I retired July 6

BeamishStout · Post by **BeamishStout** » 18 Dec 2018, 16:20

dannyboy wrote:This is a copy of letter I received after writing to hr instead of all the time I waisted on phone.Thank you for your letter I received regarding the non payment of the financial advice allowance you were entitled to receive.i have investigated this error and can confirm that I have made this payment to you today and you can expect this to be in your bank account on Friday 21 December 2018. Please accept my apologies for this oversight.So finally will get money on 21 December I retired July 6

The ironic thing about this payment is that most people will have got their payment months after the time they may have needed financial advice. The phone line is useless for some things and this is one of them. Putting this in writing was a wise move and has led to getting the payment that was due to you. Nice Xmas present