How will RMPP members’ benefits be revalued from 1 April 2018?
From 1 April 2018, Section C members’ pre-April 2008 benefits would be linked to increases in RPI (up to 5% a year) from that date until they leave Royal Mail employment or take their benefits, rather than to Final Salary pensionable pay at the date they leave.
These benefits will be increased in line with the Retail Price Index (up to 5 per cent a year), subject to certain exceptions.
Benefits between 1 April 2012 and 31 March 2014 include Career Salary Defined Benefit, Normal Retirement Age of 65 and ongoing Final Salary link from 1 April 2012
Benefits between 1 April 2014 and 31 March 2018 include Career Salary Defined Benefit, Normal Retirement Age of 65, increases in basic pensionable pay (Final Salary and Career Salary Defined Benefit) capped at Retail Price Index up to 5 per cent per annum
Section A/B members’ pre-April 2008 benefits would continue to be linked to the greater of:
increases in RPI (up to 5% a year) and;
Final Salary pensionable pay at the date they leave.
The Final Salary link is required under the Section A/B rules in order to maintain increases at RPI (up to 5% a year) in the Royal Mail Statutory Pension Scheme. This is not a requirement under the Section C rules.