22 Mar 2020, 10:37

Question please, as the pension pots pots are seperate for each of the above? How is each pension pot fo r your salary calculated please as I would like to calculate what my 25% max allowance for lump sum will be.

Will have Done 39.5 years in Oct 2020 to collect initially nra60. Thanks

Will have Done 39.5 years in Oct 2020 to collect initially nra60. Thanks

22 Mar 2020, 11:39

Robert T will give you a far better calculation than me, but here goes from me.

Find your pensionable pay, times it by 20, add your lump sums and your cash balance scheme payment, total them all up and find 25% of that.

I am not sure, how the cash balance scheme fits into all of this.

Oh, for your pension, take 5% away for each year, you take it early and around 15% for taking the max lump sum.

Robert T, will I am sure, be along to give you a far better way of calculating it.

For me as a night ex phg, with 39 years and 10 months service section B (pensionable pay around £27000)

I expect to get around £10,000 per annun pension (taking it at nearly 60, 59 years and 10 months) including reductions for taking early and max lump sum. If I had hung on to 65, that would be around £13000.

and a FS lump sum of between £53,000 and £58,0000 and a CSDB lump of between £12000 TO £14000 taking it early, Combined with around £11,400 cash bal scheme (till Apr 20)

This is taking all pensions, ie Nra 60 and 65 + cash bal scheme.

For just Nra 60

pension x 20 + lump sum, find total and then find 25%.

When you get your NRA 65, I think you get a couple of years of your NRA 60. 2008 to 2010..Complicated??

Find your pensionable pay, times it by 20, add your lump sums and your cash balance scheme payment, total them all up and find 25% of that.

I am not sure, how the cash balance scheme fits into all of this.

Oh, for your pension, take 5% away for each year, you take it early and around 15% for taking the max lump sum.

Robert T, will I am sure, be along to give you a far better way of calculating it.

For me as a night ex phg, with 39 years and 10 months service section B (pensionable pay around £27000)

I expect to get around £10,000 per annun pension (taking it at nearly 60, 59 years and 10 months) including reductions for taking early and max lump sum. If I had hung on to 65, that would be around £13000.

and a FS lump sum of between £53,000 and £58,0000 and a CSDB lump of between £12000 TO £14000 taking it early, Combined with around £11,400 cash bal scheme (till Apr 20)

This is taking all pensions, ie Nra 60 and 65 + cash bal scheme.

For just Nra 60

pension x 20 + lump sum, find total and then find 25%.

When you get your NRA 65, I think you get a couple of years of your NRA 60. 2008 to 2010..Complicated??

22 Mar 2020, 12:07

Take the figures from your last annual statement and do the maths I suggested in this thread: https://www.royalmailchat.co.uk/communi ... 27&t=94444

As you're in section B, you'll need to do similar calculations for your lump sum/s.

That will give you rough NRA60 & NRA65 pension and lump sum amounts.

Multiply the NRA60 pension by 20 and add on the lump sum to give your age 60 'total pot value'. You can take 25% of that as a tax free lump sum at age 60.

Divide the remaining amount by 20 and that's roughly what your annual pension will be.

The maths will look like this:

NRA60 pension x 20 + standard lump sum = total pot value / 4 = tax free lump sum

Remaining amount / 20 = yearly pension.

The DBCBS will normally be paid out along with your NRA65 benefits, so include the amount you've accrued onto your NRA65 figures and do the same maths again:

NRA65 pension x 20 + standard lump sum + DBCBS = total pot value / 4 = tax free lump sum

Remaining amount / 20 = yearly pension.

As you're in section B, you'll need to do similar calculations for your lump sum/s.

That will give you rough NRA60 & NRA65 pension and lump sum amounts.

Multiply the NRA60 pension by 20 and add on the lump sum to give your age 60 'total pot value'. You can take 25% of that as a tax free lump sum at age 60.

Divide the remaining amount by 20 and that's roughly what your annual pension will be.

The maths will look like this:

NRA60 pension x 20 + standard lump sum = total pot value / 4 = tax free lump sum

Remaining amount / 20 = yearly pension.

The DBCBS will normally be paid out along with your NRA65 benefits, so include the amount you've accrued onto your NRA65 figures and do the same maths again:

NRA65 pension x 20 + standard lump sum + DBCBS = total pot value / 4 = tax free lump sum

Remaining amount / 20 = yearly pension.

Last edited by RobertT on 22 Mar 2020, 15:29, edited 1 time in total.

22 Mar 2020, 15:18

Thanks for that, so I don't plan to take my nra65 in Oct just my nra60.

For the next 5 years from Oct what's the max amount I can pay into nra65 pension ie avc's to benefit from tax and NI. I v never paid into avc before but wish to pay into it when I rec my nra60. Will I lose any amount ie is their risks Involved? Thanks

For the next 5 years from Oct what's the max amount I can pay into nra65 pension ie avc's to benefit from tax and NI. I v never paid into avc before but wish to pay into it when I rec my nra60. Will I lose any amount ie is their risks Involved? Thanks

22 Mar 2020, 15:24

Hi Robert

Just to confirm should the 2nd one be NRA 65 from your previous quote.

The maths will look like this:

NRA60 pension x 20 + standard lump sum = total pot value / 4 = tax free lump sum

Remaining amount / 20 = yearly pension.

The DBCBS will normally be paid out along with your NRA65 benefits, so include the amount you've accrued onto your NRA65 figures and do the same maths again:

NRA60 pension x 20 + standard lump sum + DBCBS = total pot value / 4 = tax free lump sum

Remaining amount / 20 = yearly pension.

Really good work again thanks.

Just to confirm should the 2nd one be NRA 65 from your previous quote.

The maths will look like this:

NRA60 pension x 20 + standard lump sum = total pot value / 4 = tax free lump sum

Remaining amount / 20 = yearly pension.

The DBCBS will normally be paid out along with your NRA65 benefits, so include the amount you've accrued onto your NRA65 figures and do the same maths again:

NRA60 pension x 20 + standard lump sum + DBCBS = total pot value / 4 = tax free lump sum

Remaining amount / 20 = yearly pension.

Really good work again thanks.

22 Mar 2020, 15:30

Yes it should read NRA65 - I've corrected it!

22 Mar 2020, 15:31

Thanks, may I ask do I use the 2019 pension figure as sent out to us recently as the nra60 amount?

Thanks

Thanks

22 Mar 2020, 15:50

Yes sorry, from last statement.

So if I wanted to pay towards Avc s fo rmy nra65 can I do this and what's the calculation to find out max I can pay with get most tax and NI benefit please thanks.

So if I wanted to pay towards Avc s fo rmy nra65 can I do this and what's the calculation to find out max I can pay with get most tax and NI benefit please thanks.

22 Mar 2020, 15:51

rks wrote:Thanks for that, so I don't plan to take my nra65 in Oct just my nra60.

For the next 5 years from Oct what's the max amount I can pay into nra65 pension ie avc's to benefit from tax and NI. I v never paid into avc before but wish to pay into it when I rec my nra60. Will I lose any amount ie is their risks Involved? Thanks

We don't yet know whether we'll still be able to pay AVC's when the new CDC scheme starts, and we don't even know when it's going to start!

The reason being is that AVC's are attached to our already accrued NRA60 & NRA65 benefits and you have to be an active employee member of the RMPP to pay AVC's

The CDC scheme will be totally separate from NRA60/NRA65/DBCBS/AVC's, therefore and in my opinion, we won't be able to pay AVC's once CDC starts.

So my advice would be to pay extra while you can.

To get the full benefits of paying AVC's you need to stay within the limits for PSE, which means your basic pay can't go below the level of the minimum wage. In practice that involves some more maths:

Basic RM hourly pay – hourly minimum wage x basic hours worked. So for a full timer that would be:

11.62 – 8.72 x 38 = 110.20

So the maximum amount you can pay in AVC's per week would be a gross(the amount on your payslip) of £110. Although I would suggest a max of £100 to be sure.

You can pay more if you want but that would mean missing out on the benefits of PSE.

In money terms a £100 gross contribution from you would mean it only costing you £68. Your income tax bill will reduce by £20 and your NIC's by £12 – the government pay that £32!

By paying an amount that takes you over the limit for PSE, means you won't get that benefit at all. So it makes sense to stay within those limits.

You will have choices as to where you invest your cash, some are more risky than others. More info:

AVC info: https://www.royalmailpensionplan.co.uk/ ... n-benefits

Investment performance of the funds available: https://digital.feprecisionplus.com/cor ... ory=2rmp62

rks wrote:Thanks, may I ask do I use the 2019 pension figure as sent out to us recently as the nra60 amount?

Yes, they are your figures upto 31st March 2019, we've been building up our Cash Balance(DBCBS) pots since 1st April 2018.

22 Mar 2020, 18:52

rks wrote:Yes sorry, from last statement.

So if I wanted to pay towards Avc s fo rmy nra65 can I do this and what's the calculation to find out max I can pay with get most tax and NI benefit please thanks.

I am monthly paid and currently paying £500 a month into section B flexiplan which still keeps me within PSE limits so this actually only reduces my Net pay by £340 a month with the tax & NI savings. The reason I am currently doing this is to build up my NRA65 lump sum.

23 Mar 2020, 12:24

Hello Steve,

May I ask is this flexiplan still available please, if It is,

And I continue to pay into it up to nra65 payout, how can it be used,? Thanks

May I ask is this flexiplan still available please, if It is,

And I continue to pay into it up to nra65 payout, how can it be used,? Thanks

23 Mar 2020, 14:36

I have only just started paying into mine so yes it is still available but not sure how long for with the new pension scheme soon to be given the OK. This is why I am currently paying £500 per month to build up my NRA65 lump sum so I can take a bigger pension when it is paid. Don't forget that you also have your cash balance amount which you have been paying into since April 2018 which can also be taken at 65.

You need to ring the Pension Service Centre and ask them to send you the AVC pack.

You need to ring the Pension Service Centre and ask them to send you the AVC pack.

23 Mar 2020, 14:53

rks wrote:Hello Steve,

May I ask is this flexiplan still available please, if It is,

And I continue to pay into it up to nra65 payout, how can it be used,? Thanks

The first link in my previous post will give you lots of info, that's why I gave you the link!!!!!

Pay particular attention to the 'guide to AVC's'.

23 Mar 2020, 18:23

Thanks

25 Mar 2020, 20:02

Thailand1 wrote:Hi Robert

Just to confirm should the 2nd one be NRA 65 from your previous quote.

The maths will look like this:

NRA60 pension x 20 + standard lump sum = total pot value / 4 = tax free lump sum

Remaining amount / 20 = yearly pension.

The DBCBS will normally be paid out along with your NRA65 benefits, so include the amount you've accrued onto your NRA65 figures and do the same maths again:

NRA60 pension x 20 + standard lump sum + DBCBS = total pot value / 4 = tax free lump sum

Remaining amount / 20 = yearly pension.

Really good work again thanks.

Hi Robert.....Should 20% of the CSDB 2008 - 2018 be included in NRA 60?

Thank you in advance.

25 Mar 2020, 22:19

Thailand1 wrote:Thailand1 wrote:Hi Robert

Just to confirm should the 2nd one be NRA 65 from your previous quote.

The maths will look like this:

NRA60 pension x 20 + standard lump sum = total pot value / 4 = tax free lump sum

Remaining amount / 20 = yearly pension.

The DBCBS will normally be paid out along with your NRA65 benefits, so include the amount you've accrued onto your NRA65 figures and do the same maths again:

NRA60 pension x 20 + standard lump sum + DBCBS = total pot value / 4 = tax free lump sum

Remaining amount / 20 = yearly pension.

Really good work again thanks.

Hi Robert.....Should 20% of the CSDB 2008 - 2018 be included in NRA 60?

Thank you in advance.

26 Mar 2020, 10:27

Robert T... Help!

26 Mar 2020, 11:22

Thailand1 wrote:Thailand1 wrote:Hi Robert

Just to confirm should the 2nd one be NRA 65 from your previous quote.

The maths will look like this:

NRA60 pension x 20 + standard lump sum = total pot value / 4 = tax free lump sum

Remaining amount / 20 = yearly pension.

The DBCBS will normally be paid out along with your NRA65 benefits, so include the amount you've accrued onto your NRA65 figures and do the same maths again:

NRA60 pension x 20 + standard lump sum + DBCBS = total pot value / 4 = tax free lump sum

Remaining amount / 20 = yearly pension.

Really good work again thanks.

Hi Robert.....Should 20% of the CSDB 2008 - 2018 be included in NRA 60?

Thank you in advance.

Yes, as per the link in my first post in this thread.