Another attempt at understanding the pension ?

[GRS]

The RM pension is an utter disgrace. To make it so convoluted that a minimal amount of people actually fully understand it is abhorrent. People being put in one scheme which is then closed to be put in another which is itself then closed so they are then dumped into a third or scheme is disingenuous to say the least .To top it all off all of these schemes are administered by different bodies so nothing tied up and statements come out willy nilly. In our office of approximately 50 people I get so many of them coming up to me with questions and asking whether I understand anything to do with the pension and I try to help with any basic help I can give, yet I come on here and realise that I know next to nothing compared to 1 or 2 of you. My personal feelings are that it is made deliberately difficult in the hope that people “lose out” somewhere along the line. I mentioned to someone in conversation who works as an IFA that I was in the RM pension to who he rolled his eyes and said “oh god, I’ve dealt with plenty of people in RM’s pension - what a mess”!!

[heapsy]

The biggest problem is the sudden leap from an NRA of 60, to 65. Now another to 67. Joining the dots can be tricky at best. Do you, don't you take pensions early, if you are retiring at 60? My personal thoughts are no, don't. It isn't true to say that you don't start losing out until you are 72 etc etc. The changes are, what they are. I'm filling the gap with other assets and private pensions.
The union should have pushed RM for a continuation of 60 as the NRA, at least for those who were pension scheme members at the time, to provide some continuity. Even if the member was enrolled into another, less generous scheme, as has been the case. This might even have encouraged some people to leave the business, which has been RMs aim for some time.

[Hyrrokkin]

Always when reading about our pension(s) one thought comes to mind

What a convoluted mess it is to be honest - with poor service from RMPP & Capita as well.

[mark.cup]

I possibly didn't explain that very well it's on the RMPP statement and relates to (CSDB) benefits between 2008 and 2010.

So I was asking if those amounts get combined and added to your age 60 benefits?

Like said several years it's at zero because final salary pay hadn't increased above inflation this year there is £5 in the box the most I've seen in that box on an annual statement is £154

[RobertT]

I possibly didn't explain that very well it's on the RMPP statement and relates to (CSDB) benefits between 2008 and 2010.

So I was asking if those amounts get combined and added to your age 60 benefits?

Like said several years it's at zero because final salary pay hadn't increased above inflation this year there is £5 in the box the most I've seen in that box on an annual statement is £154

The info on your statement says those amounts are added to your NRA60 benefits, and paid by the RMPP.

But how much you get or whether you actually get anything at all, will depend on the rates of final salary pay and inflation from one year to the next.

As the RMPP has now closed, I assume the amounts on next years statement won't change going forward for people still employed. Except perhaps by inflation?

I also assume the rates for deferred members will apply when they left the company.

[RobertT]

The RM pension is an utter disgrace. To make it so convoluted that a minimal amount of people actually fully understand it is abhorrent. People being put in one scheme which is then closed to be put in another which is itself then closed so they are then dumped into a third or scheme is disingenuous to say the least .To top it all off all of these schemes are administered by different bodies so nothing tied up and statements come out willy nilly. In our office of approximately 50 people I get so many of them coming up to me with questions and asking whether I understand anything to do with the pension and I try to help with any basic help I can give, yet I come on here and realise that I know next to nothing compared to 1 or 2 of you. My personal feelings are that it is made deliberately difficult in the hope that people “lose out” somewhere along the line. I mentioned to someone in conversation who works as an IFA that I was in the RM pension to who he rolled his eyes and said “oh god, I’ve dealt with plenty of people in RM’s pension - what a mess”!!

I don't think RM make their pensions deliberately difficult. But with all the changes over the years and particularly since 2008, with each one aiming to reduce their liabilities, we've ended up with a mish mash of schemes with different rules that it's very hard to get your head round.

There's not a lot that can be done about that now, but the different schemes really should be getting their heads together to provide one annual statement for all pensions, with clear and concise info on what we get and when.

Ideally with a proper online tool to supplement that, so we can tweak the various choices we have with lump sums, the DBCBS, AVC's and the age/s we access our benefits.
But in reality all those past changes probably makes that too complex.

[Hyrrokkin]

The RM pension is an utter disgrace. To make it so convoluted that a minimal amount of people actually fully understand it is abhorrent. People being put in one scheme which is then closed to be put in another which is itself then closed so they are then dumped into a third or scheme is disingenuous to say the least .To top it all off all of these schemes are administered by different bodies so nothing tied up and statements come out willy nilly. In our office of approximately 50 people I get so many of them coming up to me with questions and asking whether I understand anything to do with the pension and I try to help with any basic help I can give, yet I come on here and realise that I know next to nothing compared to 1 or 2 of you. My personal feelings are that it is made deliberately difficult in the hope that people “lose out” somewhere along the line. I mentioned to someone in conversation who works as an IFA that I was in the RM pension to who he rolled his eyes and said “oh god, I’ve dealt with plenty of people in RM’s pension - what a mess”!!

I don't think RM make their pensions deliberately difficult. But with all the changes over the years and particularly since 2008, with each one aiming to reduce their liabilities, we've ended up with a mish mash of schemes with different rules that it's very hard to get your head round.

There's not a lot that can be done about that now, but the different schemes really should be getting their heads together to provide one annual statement for all pensions, with clear and concise info on what we get and when.

Ideally with a proper online tool to supplement that, so we can tweak the various choices we have with lump sums, the DBCBS, AVC's and the age/s we access our benefits.
But in reality all those past changes probably makes that too complex.

[fitz15]

Why has the pension supplement stayed the same from 2023 to 2024 there has been no increase this is statutory pension scheme section c does anybody have any idea why this is

[GRS]

The RM pension is an utter disgrace. To make it so convoluted that a minimal amount of people actually fully understand it is abhorrent. People being put in one scheme which is then closed to be put in another which is itself then closed so they are then dumped into a third or scheme is disingenuous to say the least .To top it all off all of these schemes are administered by different bodies so nothing tied up and statements come out willy nilly. In our office of approximately 50 people I get so many of them coming up to me with questions and asking whether I understand anything to do with the pension and I try to help with any basic help I can give, yet I come on here and realise that I know next to nothing compared to 1 or 2 of you. My personal feelings are that it is made deliberately difficult in the hope that people “lose out” somewhere along the line. I mentioned to someone in conversation who works as an IFA that I was in the RM pension to who he rolled his eyes and said “oh god, I’ve dealt with plenty of people in RM’s pension - what a mess”!!

I don't think RM make their pensions deliberately difficult. But with all the changes over the years and particularly since 2008, with each one aiming to reduce their liabilities, we've ended up with a mish mash of schemes with different rules that it's very hard to get your head round.

There's not a lot that can be done about that now, but the different schemes really should be getting their heads together to provide one annual statement for all pensions, with clear and concise info on what we get and when.

Ideally with a proper online tool to supplement that, so we can tweak the various choices we have with lump sums, the DBCBS, AVC's and the age/s we access our benefits.
But in reality all those past changes probably makes that too complex.

Yep spot on! When you look on here there’s probably a couple of people (including yourself) who seem to have a proper handle on the pensions.

If we say for arguments sake there are currently 100,000 presently employed postmen in the various schemes I bet there are 99,800 who haven’t a clue on what scheme they’re in or how much they’re likely to be getting when they retire. That is an extremely poor state of affairs particularly when you consider how much money people are paying over each week/month and even more so at a time when the state pension age keeps moving or even whether it will be in existence in years to come. Everyone is told to plan for your retirement no matter how young you are - how can you when companies are allowed to churn out statements ad hoc with half baked info in them. As you said people want and need one statement with a clear figure.

[renrag40]

I've just received my nra60 at 60.
The process has been streamlined by not having to work out what percentage is each pension pot as a proportion of the life time allowance as that is no more.
The best advice I could give anyone is read the forms through carefully...... then read them again .... and when you are sure you have worked out what they are asking for.... only then fill the forms in.
Send the forms in promptly..... don't leave it to do next week..... 1 week will suddenly become 3 weeks and you will end up delaying the process if you are not careful.
RMPP was quicker with their paperwork than RMSPS/Capita..... for example I got the final figures confirmation letter on my birthday.
But the proof is in the eating of the pudding as they say.
Both tax free lump sum were in my bank account on my birthday along 1 days monthly pension from each pension scheme with a 30% deduction held back for tax implications.
So, I may have been lucky that the process went smoothly in my case given some of the horror stories I've seen on these threads. But I have no gripes with the process.
Just as a matter of interest, is anybody else paying their monthly pension income (not, repeat NOT the tax free lump sum) into a SIPP?
I'm still working at RM so want to put the money back into a tax effeicient wrapper. It is Defined Benefit monthly pension income which does not fall under the pension recycling rules nor trigger the MPPA rule.

[renrag40]

MPAA not MPPA

[tractorboy2]

Why has the pension supplement stayed the same from 2023 to 2024 there has been no increase this is statutory pension scheme section c does anybody have any idea why this is

I think it's fixed as you lose it when you reach state pension age.

[RobertT]

Why has the pension supplement stayed the same from 2023 to 2024 there has been no increase this is statutory pension scheme section c does anybody have any idea why this is

Not 100% sure, but I think the annual rises are included in the pension increase amount.

[heapsy]

Why has the pension supplement stayed the same from 2023 to 2024 there has been no increase this is statutory pension scheme section c does anybody have any idea why this is

Not 100% sure, but I think the annual rises are included in the pension increase amount.

It doesn't increase in line with the pension. A full timer built the supplement at the rate of £56 per year. Not sure why it was that figure, but it was. So over time, it decreases in value. Mine is just over £1.200 per year.

[RobertT]

Why has the pension supplement stayed the same from 2023 to 2024 there has been no increase this is statutory pension scheme section c does anybody have any idea why this is

Not 100% sure, but I think the annual rises are included in the pension increase amount.

It doesn't increase in line with the pension. A full timer built the supplement at the rate of £56 per year. Not sure why it was that figure, but it was. So over time, it decreases in value. Mine is just over £1.200 per year.

Going by previous RMSPS annual statements, the increases for both the pension and the supplement are included in the pension increase amount.

It was worked out as 1/60th of the LED.

EDIT:

Looking at my RMSPS 'Preserved Benefit Update' which I received shortly after I left RM. The supplement value on leaving the company is roughly 53% higher than it was when I stopped accruing it in 2012.

So I think it's fair to say it does increase and the only place that will be included on the annual RMSPS statement is in the 'pension increase amount'.