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Pension Type

06 Jul 2019, 10:48

Hi. I left Royal Mail in March 2010 and therefore have a small pension sat waiting in sectionA/B. Could anyone tell me if this would be a defined benefit or defined contribution scheme. The reason I ask is that I believe there are difference in how you can take the pension. I was looking to use the yearly part of the pension to cash into a total lump sum leaving no actual yearly amount payable. I read that this may not be possible under the defined benefit scheme. Any insight would be appreciated between the different schemes and what scheme you may possibly believe myself to be a part of. Its not a massive amount sat in both. Around 2,500 annually and a lump sum of 7,500.

Thanks

Pension Type

06 Jul 2019, 10:55

with so many pension options and plans at Royal Mail now, I have been here 14 years and 1 think I am on my 3rd type and waiting for the 4th to be set up. :shock:

Its probably best to contact the pension people direct. Your latest pension update though should give you some clues.

Pension Type

06 Jul 2019, 12:17

Pgreen50 wrote:Hi. I left Royal Mail in March 2010 and therefore have a small pension sat waiting in sectionA/B. Could anyone tell me if this would be a defined benefit or defined contribution scheme. The reason I ask is that I believe there are difference in how you can take the pension. I was looking to use the yearly part of the pension to cash into a total lump sum leaving no actual yearly amount payable. I read that this may not be possible under the defined benefit scheme. Any insight would be appreciated between the different schemes and what scheme you may possibly believe myself to be a part of. Its not a massive amount sat in both. Around 2,500 annually and a lump sum of 7,500.

Thanks

No need to contact anyone else!

The date you joined the pension scheme denotes which one you're in. If you joined anytime between 1st December 1971 and 31st March 1987 you'll be in Section B, which by the sounds of it you are.
If you joined between 1st April 1987 and 31st March 2008 you'll be in section C.

Whichever section you're in, you have a defined benefit pension which is based on your wages and length of service. You also have all your benefits in the RM Statutory Pension Scheme, which is what you accrued before 31st March 2012, and that means it's not possible to transfer your pension as one lump sum into a defined contribution scheme.

You would know if you already had a DC scheme because you would just have a pot of money, rather than specified benefits!

Here's a simple guide to the difference between DB & DC: https://www.pensionlite.co.uk/defined-b ... -pensions/

RMSPS(pre 2012) website: https://www.royalmailsps.co.uk/

Your pension will still pay a guaranteed index linked income for the rest of your life and provide a spouses pension on your death.

Pension Type

06 Jul 2019, 12:24

TrueBlueTerrier wrote:with so many pension options and plans at Royal Mail now, I have been here 14 years and 1 think I am on my 3rd type and waiting for the 4th to be set up. :shock:

Its probably best to contact the pension people direct. Your latest pension update though should give you some clues.

You started in 2005? So you joined section C and built up to 3 years of final salary pension and then 10 years of average salary pension, sometimes known as CARE or CSDB. In practice you have around 5 years of NRA60 pension up to 31st March 2010 and 8 years of NRA65 pension from then to 31st March 2018.
You are now presumably paying into the DBCBS to provide a lump sum alongside those already accrued benefits.

You may then build up some CDC pension when that's implemented.

Pension Type

06 Jul 2019, 21:34

Thank you

Pension Type

07 Jul 2019, 12:19

your in the wrong job Robert T :thumbup

Pension Type

07 Jul 2019, 18:20

maisymoo04 wrote:your in the wrong job Robert T :thumbup

I don't know about that!

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