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Is there a way to find out my pension increase earlier?

Royal Mail pension news and discussion.Please note the advise given in this forum is unofficial, please use the links we have for a more detailed response or see an independent financial adviser.
windermeredave
EX ROYAL MAIL
Posts: 265
Joined: 08 Mar 2010, 13:37
Gender: Male

Is there a way to find out my pension increase earlier?

Post by windermeredave »

Because I am in receipt of housing and council tax benefits the calculations are normally done early to mid March of what I will be getting for the coming year, these figures are based on my new state pension and RM pension from the previous year
However I never know my new company pension rise until the end of April at the earliest this normally results in me getting a nasty shock around June time when I`m informed that I`ve been paid too much and I have to pay it back.
I would really like a prior notification of the exact amount it is going up so i can get it sorted much quicker.

Of course I can call them, telephone number anyone?
RobertT
EX ROYAL MAIL
Posts: 6647
Joined: 09 Sep 2007, 14:26
Gender: Male

Re: Is there a way to find out my pension increase earlier?

Post by RobertT »

You may be able to get officially notified earlier than normal, but that's something to discuss with RMPP and RMSPS.
Contact details are on their websites.

If all you want to know is the percentage increase, and then work out the gain in money terms yourself. The inflation figures for the previous September(released in October) are the ones used.

CPI is used for section A/B and RPI for section C.

A quick Google and the info is yours. Bearing in mind, RM pension increases are capped at 5%.
Links to all RM pension related websites are here
robking
Posts: 236
Joined: 19 Dec 2020, 12:14
Gender: Male

Re: Is there a way to find out my pension increase earlier?

Post by robking »

All you have to do every year is look at September's inflation rate.
Section A/B members have their pensions increased by September's CPI inflation, Section C members by RPI inflation in both cases there is a maximum of 5% and as both of the indexes were above 5% last September, a 5% increase is what you'll get.
So Your current annual pension x 5% = Your increase from 1st of April.
BeamishStout
Posts: 387
Joined: 19 Sep 2012, 14:42
Gender: Male

Re: Is there a way to find out my pension increase earlier?

Post by BeamishStout »

I can work out the annualised rate at least for RMPP and can agree what the payments will be in months 2-12 inclusive (annualised rate/12) but am struggling to get the calculation for the first payment in each tax year. My reasoning is that my new annualised rates become active on 6th April. Retired for a number of years now but this year sees a 5% increase so I'd like to get it right for HMRC first go as I have RMPP, RMSPS and a Teacher's Pension as well. The calculations for all three of my pension streams are shrouded in mystery for this first month and next year will be even more important when I draw state pension. I had assumed that month 1 (payable at the end of April) would receive 5/30 of the old monthly pension rate PLUS 25/30 of the new monthly pension rate but the numbers don't work out as precisely as I'd like them to (using pension data from the last 3 years).

Any thoughts on this first month?