How many pensions now

[broughts]

With the new collective scheme can someone please list all royal mails pension schemes and how to access them all it’s all so confusing I joined 1990 not sure how many I’m in now please help

[richietns]

Is true the newest collective plan when you take it your payments can go up and down each month and not a set amount?

[RobertT]

With the new collective scheme can someone please list all royal mails pension schemes and how to access them all it’s all so confusing I joined 1990 not sure how many I’m in now please help

You'll probably have been in section C from when you joined until 2024, and have benefits via both the RMSPS and RMPP.

I assume you've recently joined the RMCPP.

See my signature below for more info.
vvvvv

[RobertT]

Is true the newest collective plan when you take it your payments can go up and down each month and not a set amount?

The whole point of the pension element of the RMCPP is that it won't be possible for the scheme to be in either surplus or deficit. So if there's more money in the pot to pay all pensions, you'll get an annual increase. But if there's less, you'll see a decrease.

That will be determined on an annual basis.

[Wullie10]

Is true the newest collective plan when you take it your payments can go up and down each month and not a set amount?

The whole point of the pension element of the RMCPP is that it won't be possible for the scheme to be in either surplus or deficit. So if there's more money in the pot to pay all pensions, you'll get an annual increase. But if there's less, you'll see a decrease.

That will be determined on an annual basis.

So an ageing workforce and also High turnover of younger staff will mean less money in the pot every year hence a annual deduction of pension payment ? For the pension to be a success it surely relies on long term contributions from a large number of regular people with years of service. I can't see that in the future. Also what would happen to the pot if there was a huge cull of the workforce ? Apologies if this has been discussed elsewhere.

[skodamanpat]

Is true the newest collective plan when you take it your payments can go up and down each month and not a set amount?

The whole point of the pension element of the RMCPP is that it won't be possible for the scheme to be in either surplus or deficit. So if there's more money in the pot to pay all pensions, you'll get an annual increase. But if there's less, you'll see a decrease.

That will be determined on an annual basis.

So an ageing workforce and also High turnover of younger staff will mean less money in the pot every year hence a annual deduction of pension payment ? For the pension to be a success it surely relies on long term contributions from a large number of regular people with years of service. I can't see that in the future. Also what would happen to the pot if there was a huge cull of the workforce ? Apologies if this has been discussed elsewhere.

No that would be a Ponzi scheme. It's basically a DC scheme without the advantage of drawdown or having any say how your money is invested. On the other hand it means you share the management expenses. It is meant to provide an income for life that you can't exhaust but without any liability to the employer.

Basically each year they will calculate how much is in the pot, made up of past contributions and return on investments.

Using actuarial tables they will know how long each person in the scheme is expected to live, they will know how long each person has contributed.

So annually they will be able to calculate how much each person should receive pro rata to exhaust the entire pension pot (with no further contributions, but with an expected return on investments) at the point where everyone has died. This figure will be what they pay in pension for that year.

If in the following year the pension makes a profit then this amount will increase as the total pot will be higher pro rata, and vice versa if investment fails.

In their calculations they will include how much they expect to increase payments each year to account for inflation. They may also include a minimum life expectancy so that if a member dies younger then a lump sum may be payable.

Obviously someone who lives to 100 will do a lot better out of the pension than someone who lives to be 80.

In summation I would call it an annuity scheme run as a non profit.

[RobertT]

Is true the newest collective plan when you take it your payments can go up and down each month and not a set amount?

The whole point of the pension element of the RMCPP is that it won't be possible for the scheme to be in either surplus or deficit. So if there's more money in the pot to pay all pensions, you'll get an annual increase. But if there's less, you'll see a decrease.

That will be determined on an annual basis.

So an ageing workforce and also High turnover of younger staff will mean less money in the pot every year hence a annual deduction of pension payment ? For the pension to be a success it surely relies on long term contributions from a large number of regular people with years of service. I can't see that in the future. Also what would happen to the pot if there was a huge cull of the workforce ? Apologies if this has been discussed elsewhere.

They're trying to replicate a defined benefit scheme, except pensions won't go up automatically by inflation each year, because the company don't want any liabilities over and above what they agree to pay in. So pensions will go up if investments allow it, and stay the same or go down if they don't.

It'll be self funding.
However much is in the pot will be shared out on a proportional basis, depending on pensionable pay and length of time in the scheme, etc.

Less money or even no money going in, doesn't necessarily mean a loss in benefits. As long as investments provide a positive return, your pension will increase.

Take the RMPP as an example: No new contributions have gone into the pension element from either RM or employees since 2018 and no new members have joined since 2008, and yet there's a big surplus in the scheme. That's down to the investments providing a higher return than they needed to.

If the RMPP followed the same principles of the RMCPP, that surplus would mean more pension for its members.

If you want more in depth info, see the plans legal documents on the website.