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A question -Pension supplements - Section C - making sure you get them and lump sums -Timing

15 Oct 2020, 16:01

For Robert T, please.
A question about the supplement (for others, I don't get them)
In order to get the supplement and the lump sum associated with each individual supplement, you have to leave the business.
Now there are different procedures for taking your pension, whilst in RM employ and if you have left.
So if you decide to leave and take your pension, how...
Do you tell the pension schemes that you are leaving and you wish to take your supplements and associated lump sums and how do they include them in your "final quote" if you haven't actually left yet, but plan too on payment of your pension, it's supplements and all the lump sums? Ie (25% tax free, traded for 25% of their pension).
If you leave first before taking your pension, you have to contact RMPP and RMSPS as seperate schemes, whereas if you are still in employment with RM, they contact RMPP.
I am thinking about timing and how they go about it and to make sure, they retain their supplements and associated lump sums.
Thanks.

A question -Pension supplements - Section C - making sure you get them and lump sums -Timing

15 Oct 2020, 17:16

To be honest, I think you're asking the wrong person. You need someone who's been through the process, as I haven't. but your ideal person will have left RM and presumably won't be a regular on this forum?

But I would have thought you would have to tell the RMPP and RMSPS to ensure they know you're leaving.

I don't see why the final quote would be a major issue, as they would just factor the supplement in. The RMPP closed to future accrual in 2018, so we're not building up any more pension.
So it should be fairly straight forward, but then again this is RM pensions we're talking about.

I suppose there's also the scenario, that you tell them you're leaving, but don't......... :left:

A question -Pension supplements - Section C - making sure you get them and lump sums -Timing

15 Oct 2020, 17:32

RobertT wrote:To be honest, I think you're asking the wrong person. You need someone who's been through the process, as I haven't. but your ideal person will have left RM and presumably won't be a regular on this forum?

But I would have thought you would have to tell the RMPP and RMSPS to ensure they know you're leaving.

I don't see why the final quote would be a major issue, as they would just factor the supplement in. The RMPP closed to future accrual in 2018, so we're not building up any more pension.
So it should be fairly straight forward, but then again this is RM pensions we're talking about.

I suppose there's also the scenario, that you tell them you're leaving, but don't......... :left:

I would have thought if you didn't leave, they would seek to recover the lump sums associated with the pension supplements you could no longer take.
Thanks.

A question -Pension supplements - Section C - making sure you get them and lump sums -Timing

15 Oct 2020, 17:46

stephen500 wrote:
RobertT wrote:To be honest, I think you're asking the wrong person. You need someone who's been through the process, as I haven't. but your ideal person will have left RM and presumably won't be a regular on this forum?

But I would have thought you would have to tell the RMPP and RMSPS to ensure they know you're leaving.

I don't see why the final quote would be a major issue, as they would just factor the supplement in. The RMPP closed to future accrual in 2018, so we're not building up any more pension.
So it should be fairly straight forward, but then again this is RM pensions we're talking about.

I suppose there's also the scenario, that you tell them you're leaving, but don't......... :left:

I would have thought if you didn't leave, they would seek to recover the lump sums associated with the pension supplements you could no longer take.
Thanks.


I've not been through the process but I have had the annual statements and a pension estimate within a week of each other (although they include payments to a year later). The odd thing is the estimates include a supplement for NRA60 and NRA65 in both RMPP and RMSPS but in my annual statement there is no supplement for NRA60 from RMPP. The supplements for NRA60 and NRA65 in the estimates are also unchanged regardless if max pension or max LS is chosen.

A question -Pension supplements - Section C - making sure you get them and lump sums -Timing

15 Oct 2020, 17:54

freespeech wrote:
stephen500 wrote:
RobertT wrote:To be honest, I think you're asking the wrong person. You need someone who's been through the process, as I haven't. but your ideal person will have left RM and presumably won't be a regular on this forum?

But I would have thought you would have to tell the RMPP and RMSPS to ensure they know you're leaving.

I don't see why the final quote would be a major issue, as they would just factor the supplement in. The RMPP closed to future accrual in 2018, so we're not building up any more pension.
So it should be fairly straight forward, but then again this is RM pensions we're talking about.

I suppose there's also the scenario, that you tell them you're leaving, but don't......... :left:

I would have thought if you didn't leave, they would seek to recover the lump sums associated with the pension supplements you could no longer take.
Thanks.


I've not been through the process but I have had the annual statements and a pension estimate within a week of each other (although they include payments to a year later). The odd thing is the estimates include a supplement for NRA60 and NRA65 in both RMPP and RMSPS but in my annual statement there is no supplement for NRA60 from RMPP. The supplements for NRA60 and NRA65 in the estimates are also unchanged regardless if max pension or max LS is chosen.

So if a member chooses to give up 25% of their pension for a lump sum of say 25%, are you saying the pension supplement does not reduce by 25%.
So a member gets the gain of more lump sum ie supplement x 20 (25% of that) and no reduction in supplement? How would that work?

A question -Pension supplements - Section C - making sure you get them and lump sums -Timing

15 Oct 2020, 18:11

stephen500 wrote:
freespeech wrote:
stephen500 wrote:
RobertT wrote:To be honest, I think you're asking the wrong person. You need someone who's been through the process, as I haven't. but your ideal person will have left RM and presumably won't be a regular on this forum?

But I would have thought you would have to tell the RMPP and RMSPS to ensure they know you're leaving.

I don't see why the final quote would be a major issue, as they would just factor the supplement in. The RMPP closed to future accrual in 2018, so we're not building up any more pension.
So it should be fairly straight forward, but then again this is RM pensions we're talking about.

I suppose there's also the scenario, that you tell them you're leaving, but don't......... :left:

I would have thought if you didn't leave, they would seek to recover the lump sums associated with the pension supplements you could no longer take.
Thanks.


I've not been through the process but I have had the annual statements and a pension estimate within a week of each other (although they include payments to a year later). The odd thing is the estimates include a supplement for NRA60 and NRA65 in both RMPP and RMSPS but in my annual statement there is no supplement for NRA60 from RMPP. The supplements for NRA60 and NRA65 in the estimates are also unchanged regardless if max pension or max LS is chosen.

So if a member chooses to give up 25% of their pension for a lump sum of say 25%, are you saying the pension supplement does not reduce by 25%.
So a member gets the gain of more lump sum ie supplement x 20 (25% of that) and no reduction in supplement? How would that work?


I don't know the answer for everyone but IN MY CASE the estimate I have received has exactly the same supplement amounts regardless of whether max pension or max lump sum is taken.

A question -Pension supplements - Section C - making sure you get them and lump sums -Timing

Today, 14:37

Hi Stephen 500,
I am in the same boat.Have just phoned pension helpline to ask and have been told you have to leave the business before applying for pension to ensure you receive supplements(Scares me a bit)
Also told that one phone call to RMPP would suffice (I’m not confident)and they would still contact RMSPS.

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