not on facebook
ANNOUNCEMENT : ALL OF ROYAL MAIL'S EMPLOYMENT POLICIES (AGREEMENTS) AT A GLANCE (UPDATED 2017)... HERE


Switching from RMDCP to RMPP to build up DBCBC benefits.

08 Mar 2018, 12:22

I'm just about sure I want to switch over but curious what happens to my existing pot if I do. The clear as mud booklet says RMDCP members cannot transfer this retirement account to the DBCBS scheme. So this means I will end up with my current pension being frozen and starting afresh with another one?

Switching from RMDCP to RMPP to build up DBCBC benefits.

08 Mar 2018, 13:41

NCFCstu wrote:I'm just about sure I want to switch over but curious what happens to my existing pot if I do. The clear as mud booklet says RMDCP members cannot transfer this retirement account to the DBCBS scheme. So this means I will end up with my current pension being frozen and starting afresh with another one?


Q & A Pension review.

Will existing money built up in RMDCP or RMPP be transferred into the new DBCBS or the CDC and DBLSS arrangement?
No. The retirement pots members build up prior to 1 April 2018 will not be transferred our new retirement schemes.


I am also in RMDCP , "starting afresh" - that's how I read it.

If you join DBCBS i am now unclear if you can transfer those contributions to the CDC scheme if/when that commences.


Edit 9 March . Email response from my.pension@royalmail.com

At this stage we don’t know if it will be possible to transfer the DBCBS benefits to the CDC scheme. If it is possible then it will be important for you to understand at the time what benefits you get in exchange as sometimes (depending on a number circumstances) a transfer might not be the best thing to do.

Further information will follow if and when CDC comes into force
Last edited by rogersh on 10 Mar 2018, 07:38, edited 2 times in total.

Switching from RMDCP to RMPP to build up DBCBC benefits.

08 Mar 2018, 15:02

NCFCstu wrote:I'm just about sure I want to switch over but curious what happens to my existing pot if I do. The clear as mud booklet says RMDCP members cannot transfer this retirement account to the DBCBS scheme. So this means I will end up with my current pension being frozen and starting afresh with another one?

Your RMDCP account won’t be frozen as such if you opt for the DBCBS from 1st April. You won’t be able to pay any more money into it, but its value will still be dependent on the fund/s it’s invested in.

You can however, transfer it into another pension arrangement such as a personal pension or a SIPP, and carry on paying into it, if you want to.

Switching from RMDCP to RMPP to build up DBCBC benefits.

08 Mar 2018, 15:03

rogersh wrote:If you join DBCBS i am now unclear if you can transfer those contributions to the CDC scheme if/when that commences.

I don’t think the answer to that is in any of the info we’ve been given. But in my opinion we won’t be able to transfer into the CDC when/if it’s implemented. And considering the CDC will have an NRA of 67, it wouldn’t necessarily be a good move anyway.

Switching from RMDCP to RMPP to build up DBCBC benefits.

08 Mar 2018, 15:40

Having just opened the latest new pension guide, can I just get this straight.

If I remain in the DC plan I can continue as I am now, but with a little extra from Royal Mail. The value of the funds invested in may fluctuate, but historically over a decent time span will gradually increase in value. I would be free to take it when I wanted after 55, and/or when markets were favourable.

The new Cash Balance Scheme only guarantees the money that Royal Mail and I put into it. I may or may not get a bonus each year, and according to the latest guide if I wanted to take it before I am 65 even those modest bonuses would not be guaranteed ? I presume that "taking" it would include transferring to another pension arrangement.

Is it me, or is this transitional pension scheme negotiated by the CWU worse than my current one ?

Switching from RMDCP to RMPP to build up DBCBC benefits.

08 Mar 2018, 17:56

regalia25 wrote:Having just opened the latest new pension guide, can I just get this straight.

If I remain in the DC plan I can continue as I am now, but with a little extra from Royal Mail. The value of the funds invested in may fluctuate, but historically over a decent time span will gradually increase in value. I would be free to take it when I wanted after 55, and/or when markets were favourable.

The new Cash Balance Scheme only guarantees the money that Royal Mail and I put into it. I may or may not get a bonus each year, and according to the latest guide if I wanted to take it before I am 65 even those modest bonuses would not be guaranteed ? I presume that "taking" it would include transferring to another pension arrangement.

Is it me, or is this transitional pension scheme negotiated by the CWU worse than my current one ?


That's exactly what I thought

Switching from RMDCP to RMPP to build up DBCBC benefits.

08 Mar 2018, 18:35

RobertT wrote:
rogersh wrote:If you join DBCBS i am now unclear if you can transfer those contributions to the CDC scheme if/when that commences.

I don’t think the answer to that is in any of the info we’ve been given. But in my opinion we won’t be able to transfer into the CDC when/if it’s implemented. And considering the CDC will have an NRA of 67, it wouldn’t necessarily be a good move anyway.


I have sent an email for an answer re transfer query. For some employees who qualify & transfer from RMDCP to DBCBS may find is that after a relatively short period (assuming CDC/DBLSS is introduced) we will have another "pot" (or small cup) if DBCBS cannot be transferred.

Edit 10 March . Email response from my.pension@royalmail.com

At this stage we don’t know if it will be possible to transfer the DBCBS benefits to the CDC scheme. If it is possible then it will be important for you to understand at the time what benefits you get in exchange as sometimes (depending on a number circumstances) a transfer might not be the best thing to do.

Further information will follow if and when CDC comes into force
Last edited by rogersh on 10 Mar 2018, 07:43, edited 2 times in total.

Switching from RMDCP to RMPP to build up DBCBC benefits.

08 Mar 2018, 21:33

NCFCstu wrote:I'm just about sure I want to switch over but curious what happens to my existing pot if I do. The clear as mud booklet says RMDCP members cannot transfer this retirement account to the DBCBS scheme. So this means I will end up with my current pension being frozen and starting afresh with another one?

Your pot stays active with no further contributions.
So the value will fluctuate, hopefully growing over long term.
It will still attract the annual management charge but I wonder if that should be less given there are no funds being bought into so zero dealing charges incurred by the managers.

You have the option of accessing it at 55 but also possibility of transferring to a personal pension provider that a) has access to more variety of funds and b) has a lower Annual Management Charge/performance Fee

Bare in mind there may be exit/transfer fees involved

Switching from RMDCP to RMPP to build up DBCBC benefits.

09 Mar 2018, 14:56

RobertT wrote:
rogersh wrote:If you join DBCBS i am now unclear if you can transfer those contributions to the CDC scheme if/when that commences.

I don’t think the answer to that is in any of the info we’ve been given. But in my opinion we won’t be able to transfer into the CDC when/if it’s implemented. And considering the CDC will have an NRA of 67, it wouldn’t necessarily be a good move anyway.


Response from my.pension@royalmail.com

At this stage we don’t know if it will be possible to transfer the DBCBS benefits to the CDC scheme. If it is possible then it will be important for you to understand at the time what benefits you get in exchange as sometimes (depending on a number circumstances) a transfer might not be the best thing to do.

Further information will follow if and when CDC comes into force.

Previous page Next page


Page 1 of 1