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Pension Rate

19 Mar 2019, 15:08

Hi,

Just here to clarify the pension scheme - I am a new employee that is due to start soon.....

So if I pay in 6% of my salary into the pension scheme then RM pay 13.6%.

So say I earned £1000 per month......

£940 would go into my bank account.
£60 into my pension pot.
£136 would also be put into my pension pot by RM.


1. Is the above correct?

2. In terms of company pensions, where does Royal Mail's rank? is it one of the better ones in the country?

Pension Rate

19 Mar 2019, 15:43

Do you not plan to pay income tax or national insurance?

Pension Rate

19 Mar 2019, 16:26

The rates mentioned apply to the Defined Benefit Cash Balance Scheme, which you need to be employed by RM for 5 years to be a member of. And the proposed Collective Defined Contribution Scheme, which you need to be employed by RM for 12 months to be a member of, but doesn't actually exist yet, and won't for at least 12 months!

But if you're just about to start the job you would go into the RM Defined Contribution Plan (after 3 months I think), which pays a lower rate. See plan guide for more info: https://www.zurich.co.uk/internet/works ... WD0900.pdf
So I would just concentrate on that for the time being if I was you.

Income tax and NIC's would also have to be taken into account. Although a gross monthly income of £1,000 shouldn't attract too much in the way of taxes, assuming no other income.

The contributions in percentage terms in whichever RM pension scheme you pay into, rank favourably with most employers in the UK.

Pension Rate

19 Mar 2019, 16:49

Jefferson Starfish wrote:Do you not plan to pay income tax or national insurance?


This is irrelevant to my question. My question is about pension payments and not about NI and Tax. I don't need to know the finer details of tax and NI costs when that's automatic, it would just complicate my question.

Pension Rate

19 Mar 2019, 17:01

RobertT wrote:The rates mentioned apply to the Defined Benefit Cash Balance Scheme, which you need to be employed by RM for 5 years to be a member of. And the proposed Collective Defined Contribution Scheme, which you need to be employed by RM for 12 months to be a member of, but doesn't actually exist yet, and won't for at least 12 months!

But if you're just about to start the job you would go into the RM Defined Contribution Plan (after 3 months I think), which pays a lower rate. See plan guide for more info: https://www.zurich.co.uk/internet/works ... WD0900.pdf
So I would just concentrate on that for the time being if I was you.

Income tax and NIC's would also have to be taken into account. Although a gross monthly income of £1,000 shouldn't attract too much in the way of taxes, assuming no other income.

The contributions in percentage terms in whichever RM pension scheme you pay into, rank favourably with most employers in the UK.



wow, thanks for a great answer. Really appreciate it.

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