Question for Robert on redundancy

[roman]

Robert: If you took the redundancy package and you are between 60 and 65, will you still lose the 5% deduction for each year you go early on your pension ?

[RobertT]

The simple answer is, yes you would.

Any decision to take NRA60 or NRA65 benefits before those ages will mean a reduction.

[Gary55]

would you lose 5% if you go six months early or is it pro rata thanks

[Surreypostie]

You are under no obligation to take your pension if you take the rendundancy on offer so nothing would be reduced. Payments are only reduced if you take the pension early.

[RobertT]

would you lose 5% if you go six months early or is it pro rata thanks

It's pro rata, so taking your pension 6 months before NRA would see a 2.5% reduction.

[RobertT]

There is some info on what will happen to your pension in the faq's via preference exercise tile on the app.

For ease, it might be better to view it on the web version: https://www.myroyalmail.com/PeopleApp

[claretandblue]

would you lose 5% if you go six months early or is it pro rata thanks

You only lose it if you decide to take your pension early.

[roman]

Thanks all

[Gary55]

You are under no obligation to take your pension if you take the rendundancy on offer so nothing would be reduced. Payments are only reduced if you take the pension early.

But surely if you leave you are no longer contributing to it so would see a reduction

[freespeech]

You are under no obligation to take your pension if you take the rendundancy on offer so nothing would be reduced. Payments are only reduced if you take the pension early.

But surely if you leave you are no longer contributing to it so would see a reduction

We aren't contributing to NRA60 any more. The cash balance scheme we currently contribute to is NRA65 so that will be impacted.

[RobertT]

You are under no obligation to take your pension if you take the rendundancy on offer so nothing would be reduced. Payments are only reduced if you take the pension early.

But surely if you leave you are no longer contributing to it so would see a reduction

You'd see a reduction on what you've accrued to date, if you take your benefits before NRA.

If you no longer work for the company it's obvious you won't be accruing any more.

Although it's worth noting that we stopped accruing more pension via the RMPP in 2018 anyway! Since then it's been a lump sum via the DBCBS.

[tractorboy2]

You are under no obligation to take your pension if you take the rendundancy on offer so nothing would be reduced. Payments are only reduced if you take the pension early.

But surely if you leave you are no longer contributing to it so would see a reduction

You'd see a reduction on what you've accrued to date, if you take your benefits before NRA.

If you no longer work for the company it's obvious you won't be accruing any more.

Although it's worth noting that we stopped accruing more pension via the RMPP in 2018 anyway! Since then it's been a lump sum via the DBCBS.

Would the DBCBS be frozen ? or still increase via discretionary payments ?

[RobertT]

You are under no obligation to take your pension if you take the rendundancy on offer so nothing would be reduced. Payments are only reduced if you take the pension early.

But surely if you leave you are no longer contributing to it so would see a reduction

You'd see a reduction on what you've accrued to date, if you take your benefits before NRA.

If you no longer work for the company it's obvious you won't be accruing any more.

Although it's worth noting that we stopped accruing more pension via the RMPP in 2018 anyway! Since then it's been a lump sum via the DBCBS.

Would the DBCBS be frozen ? or still increase via discretionary payments ?

It would still increase.