Death before taking pension.

[RobertT]

sorry to bump this
but is it right it pays out 4 times yearly salary in a cash lump sum? i am divorced now and don’t know who to nominate.

The death in service payment is 4 times salary for active members of the current RM pension schemes(RMPP & RMDCP) and the new Collective Plan when that starts on 7th October.
To be honest, I'm not sure about Nest.

Before anyone asks, 4 times salary is the maximum you'll get in total and not from each scheme!

There are different payouts if you're not in any scheme, you've already taken some or all of your pension/s or have left the company.

You'll need to fill in a nomination form for each RM pension scheme you have benefits with.

See all the relevant websites for details and forms.

i have kids but would want the money invested in a fund or something.

That's something you'll need to consult a solicitor about, as part of your will.

don’t suppose you know if it’s possible to leave it someone living in another country?

It's possible as long as they fit the other criteria.

[rockytony67]

I didn't want to start another thread, so I thought I would ask my question here. A couple of years after starting this thread, I've finally decided to bite the bullet and take my NRA 60, leaving the NRA 65 untouched, sent off all the forms, decided my options and a retirement date of 5 April.

So it's 9 April today, and I've heard nothing. Is this normal? I would at least have thought that they would have been in contact before 5 April. What do people think, should I contact them? Thanks for any help and advice.

[RobertT]

I didn't want to start another thread, so I thought I would ask my question here. A couple of years after starting this thread, I've finally decided to bite the bullet and take my NRA 60, leaving the NRA 65 untouched, sent off all the forms, decided my options and a retirement date of 5 April.

So it's 9 April today, and I've heard nothing. Is this normal? I would at least have thought that they would have been in contact before 5 April. What do people think, should I contact them? Thanks for any help and advice.

When did you start the process of taking your pension?
It generally takes around 3-4 months for it to go through and they tend to give priority to those taking their pensions at NRA, rather than people taking it early which may mean a longer wait.
Plus the majority of your Age60 benefits are with the RMSPS, which is administered by Capita who have a reputation for being inefficient.

[rockytony67]

Thanks for the reply, Robert. I sent off the forms in early March, but after reading what you said, I will have to wait for them. Out of interest, do you get a letter from them before its paid into your account? Thanks again for your help

[RobertT]

Thanks for the reply, Robert. I sent off the forms in early March, but after reading what you said, I will have to wait for them. Out of interest, do you get a letter from them before its paid into your account? Thanks again for your help

I haven't taken any of mine yet, so I don't know the answer to that. But I would have thought you'd get confirmation of dates.

[rockytony67]

Well, for anyone interested in how taking their pension can go, I received a letter from RMPP today saying that my pension start date is 12/05/25, and the lump sum with them is paid 13/05/25. It is all well and good.

I also received a letter from RMSPP today stating that "We have been notified by Royal Mail Pension Service Centre(PSC) that you are no longer proceeding with your application, therefore, we have closed your case on our systems"

As you can imagine, I have not notified anyone that I was no longer proceeding with taking my pension

So it looks like I'm going to be on the phone to them all Monday morning, you couldn't make it up

[Hyrrokkin]

Well, for anyone interested in how taking their pension can go, I received a letter from RMPP today saying that my pension start date is 12/05/25, and the lump sum with them is paid 13/05/25. It is all well and good.

I also received a letter from RMSPP today stating that "We have been notified by Royal Mail Pension Service Centre(PSC) that you are no longer proceeding with your application, therefore, we have closed your case on our systems"

As you can imagine, I have not notified anyone that I was no longer proceeding with taking my pension

So it looks like I'm going to be on the phone to them all Monday morning, you couldn't make it up

Capita are well known to be utterly useless - something needs to be done.

I bet many are not getting the correct amount as well

[heapsy]

Sorry for your loss.

My understanding is, if there is no partner, children or someone else who is financially dependant on you, then your pension will effectively die with you.

However, it is possible to leave your lump sum death benefit to someone of your choice, such as your brother or maybe a charity.

It's always a good idea to fill in the nomination forms, to tell the trustees of your wishes. Bearing in mind the RMSPS and RMPP have their own separate forms.

It's also worth noting the nomination process for pension and lump sum, varies depending on which section you're in.

Those forms and other info is available on the RMSPS and RMPP websites:
https://www.royalmailsps.co.uk/
https://www.royalmailpensionplan.co.uk/

just a curious question Robert,....if you die before you reach state pension age, what happens to it?....is it lost to the government? cos i have known a few lads who died before they reached the state pension age.

There isn't a pot with your on it. You pay N.I. to build up credits for entitlement. The State pension is a ponzi scheme which it why they are increasing pension ages, to keep it going. Eventually, they will have to bite the bullet and make changes.