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MY PENSION ESTIMATE

11 Sep 2018, 17:57

Hi all, I am hoping to take both nra 60 & 65. pension early . can someone ,hi Robert, please tell me exactly what I will receive from the table C option. my thinking is K 4.6 lump sum and pemsion of K 6, which divided by 52 would give me around £115 per week . is this right ?

what is the K 30 figure for under lump sum ?. should there be a supplement ?. this has been accrued since 1993.

cheers. pic should be attatched
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MY PENSION ESTIMATE

11 Sep 2018, 19:38

Here's summary of what your estimate is telling you:

Table A(NRA60):

A pension of £4,398 and no lump sum; or
A pension of £3,381 plus a lump sum of £22,542.

Table B(NRA65):
A pension of £1,613 and no lump sum; or
A pension of £1,265 plus a lump sum of £8,435

Table C(A & B added together)
A pension of £6,011 and no lump sum; or
A pension of £4,646 plus a lump sum of £30,977

The lump sums quoted are the maximum(25%) you can take. You also have the option to take smaller lump sums if you wanted to, and therefore you'd get a bigger pension. For example in table A:

If you chose to take a lump sum of £11,271 which equates to 12.5%, your pension would go up to roughly £3,890.

If you started in 1993 you'll be in section C and so entitled to a supplement aswell. Which is payable until state pension age as long as you've left RM employment.

The way I understand it, is they don't calculate the supplement, your cash balance from the scheme which started in April, or factor in AVC's until you actually say you want to take your pension. Which is slightly bizarre in my opinion, but that's RM for you.

MY PENSION ESTIMATE

12 Sep 2018, 09:28

RobertT wrote:The way I understand it, is they don't calculate the supplement, your cash balance from the scheme which started in April, or factor in AVC's until you actually say you want to take your pension. Which is slightly bizarre in my opinion, but that's RM for you.


Just to add in my case they only gave out approx 90% of the AVC value on pension date with the remainder given out approx 12 weeks later! Thankfully my AVCs had grown in value so I did not lose out and in fact gained a few £K. Also the supplement (for section C members) was delayed somewhat because I was working for a short time (approx 12 weeks) after taking pension but it was back-dated to actual retirement date from work.

@ Original poster I am assuming that your figures include any reductions for taking NRA60 and NRA65 early but otherwise your figure of £115 per week looks about right taking no lump sum!

MY PENSION ESTIMATE

12 Sep 2018, 15:49

thanks for explaining that guys, any idea of a ball park figure what the supplement might be , am aged 57. prob wont take lump sum.

MY PENSION ESTIMATE

12 Sep 2018, 17:15

It's hard to say with any degree of certainty and with very limited info about your pension. But at a guess and using my 2017 annual statement as a guide, your unreduced NRA60 supplement at 60 might be around £800-£900 per year, and the unreduced NRA65 supplement at 65 would be about £470-£500.

However, how they work out the reductions for early payment of the supplement is a bit of a mystery for us on here as this recent thread confirms.

It does seem to be higher than the normal 5% for the main pension, but I would say if you allow a 7-8% per year reduction for both, that should give you a reasonable ballpark figure. But to be honest that is more of a guestimate than anything else.

Unless someone else can give a definitive answer?

MY PENSION ESTIMATE

18 Sep 2018, 10:37

It just seems plain crazy that you cannot get combined pension and AVC figures.

I would even suggest it on the edge of Being illegal ( although just on the inside).

I think it was mentioned that if you take maximum pension and no lump sum, anything over your 25 % tax free could be used to start a draw down SIPP type pension.

MY PENSION ESTIMATE

18 Sep 2018, 14:25

Hawkey99 wrote:It just seems plain crazy that you cannot get combined pension and AVC figures.

I agree, but it's not that difficult to work out ball park figures yourself. If your numbers aren't going to be enough to live on, then the exact figures from the PSC probably won't be either.

I think it was mentioned that if you take maximum pension and no lump sum, anything over your 25 % tax free could be used to start a draw down SIPP type pension.

If you're referring to excess AVC, then I've looked into the matter because I'm potentially going to be 'over funded' and the paraphrased answer from the PSC was:

You're not allowed to transfer excess AVC money into a drawdown product.

You could instead take a taxable lump sum, which would be taxed under PAYE using your marginal rate; or
purchase an annuity if the amount is over £1,000; or
if it's lower than £1,000, commute it to pension.

You can transfer the total AVC fund value to another pension arrangement which provides drawdown. There is no option to transfer part of your AVC.
Flexiplan & Bonusplan are treated as separate accounts, so you could transfer one but not the other if you wish.

You can also purchase an annuity which includes the option to take up to 25% of the overall AVC value as tax free cash.

If you wish to stop payments into Bonusplan, RMPP rules state that would also mean the cessation of your active membership of the RMPP. Therefore no more DBCBS contributions for you!


You do have the option of deferring any excess AVC cash when taking your NRA60 pension, to when you take your NRA65 benefits, which might reduce any tax liability.
Otherwise, don't over fund your AVC's!!

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