Pension Retirement Option Letter

[Yusuf789]

I hope someone can assist me with the pension retirement option form as I'm finding it a bit confusing.

I recently received my retirement option letter from RMSPS but am struggling to understand the flowchart. I’m completing the form to claim my NRA 60 benefit, as I left Royal Mail in 2008. The retirement form indicates that I’m entitled to both an annual pension and a lump sum. I don’t have any other pension schemes.

I’m unsure which box to tick on the flowchart. The options are as follows:

I am in receipt of pension benefits that began before 6th April 2006.
I have received benefits between 6th April 2006 and 5th April 2024.
I have received lump sums or have lump sums due to be paid on or after 6th April 2024 and before or on the date I take benefits from the scheme.

If I select option 3 (relating to lump sums), I would need to complete Part E, which asks for details of the lump sum, including received/expected payment dates, etc. However, I haven’t received any payments yet and don’t know the expected date for the lump sum.

I would really appreciate any guidance on how to proceed.

Thank you!

[RobertT]

It sounds like this relates to the maximum amount of tax free cash you're allowed to take from all the pensions you have?
Info: https://www.moneyhelper.org.uk/en/pensi ... r-pensions

If you don't have any other pensions (except the state pension which isn't applicable), I assume you'll have to leave them all unticked?

If in doubt I suggest you phone RMSPS/Capita for guidance.

[mw7485]

I hope someone can assist me with the pension retirement option form as I'm finding it a bit confusing.

I recently received my retirement option letter from RMSPS but am struggling to understand the flowchart. I’m completing the form to claim my NRA 60 benefit, as I left Royal Mail in 2008. The retirement form indicates that I’m entitled to both an annual pension and a lump sum. I don’t have any other pension schemes.

I’m unsure which box to tick on the flowchart. The options are as follows:

I am in receipt of pension benefits that began before 6th April 2006.
I have received benefits between 6th April 2006 and 5th April 2024.
I have received lump sums or have lump sums due to be paid on or after 6th April 2024 and before or on the date I take benefits from the scheme.

If I select option 3 (relating to lump sums), I would need to complete Part E, which asks for details of the lump sum, including received/expected payment dates, etc. However, I haven’t received any payments yet and don’t know the expected date for the lump sum.

I would really appreciate any guidance on how to proceed.

Thank you!

The expected LS date is your NRA65 date and the amount will depend upon which option you have selected earlier in the form.

[Yusuf789]

It sounds like this relates to the maximum amount of tax free cash you're allowed to take from all the pensions you have?
Info: https://www.moneyhelper.org.uk/en/pensi ... r-pensions

If you don't have any other pensions (except the state pension which isn't applicable), I assume you'll have to leave them all unticked?

If in doubt I suggest you phone RMSPS/Capita for guidance.

Thank you, I appreciate your help, Robert.

I do have another question. Is the total lump sum tax-free?

[RobertT]

Thank you, I appreciate your help, Robert.

I do have another question. Is the total lump sum tax-free?

It sounds like you're in section A/B, so you get a lump sum as standard and it will be tax free.

You will probably have the option to give up some pension to increase the lump sum too.

[Winseer]

I've received a letter from "PO Box Darlington" giving me a box to tick on paperwork...
But the paperwork says my anticipated WEEKLY pension is actually PER ANNUM in this letter.
It doesn't state how many years service I have, nor any projections for my paid-up pension as it is, as I left RM some years ago.

I am wondering if this letter with a PO box number in Darlington is actually a scam
, because it seems to be phishing for more details about my pension that *they* should already have, but I am currently unaware of...?

Any details of "Lump Sums" - are being asked OF me rather than given to me
The actual pension offer seems to be about 98% less than what I anticipated
Eg "A pension of £300 per annum" rather than "£300 per week".
There's no defined benefits mentioned.
There's no name of the other provider I switched to before I left - mentioned.

The email address I replied to - replied asking me for personal info "so they could find my file" as the reference number they gave on their own letter sent to me - isn't enough apparently to dig up details of my pension plan that's been there for years and years... IF they are the genuine provider that is...


So folks - Is this a cynical attempt to get us shortly-to-retire members to sign over our pensions to some cheating outfit that'll pocket 98% OF our geuine pension, whilst we sign up to a pittance that won't even keep us in beer old age, let alone pay the bills....
Is there any connection with the takeover of RM by a foreign outfit?


Is there a way of contacting our genuine Royal Mail pension providor directly, without having to go through a switchboard/non geograhic numbers?
Is there an office block somewhere in England where one can walk in and sit down to disucss with anyone?

[mrcurve]

I've received a letter from "PO Box Darlington" giving me a box to tick on paperwork...
But the paperwork says my anticipated WEEKLY pension is actually PER ANNUM in this letter.
It doesn't state how many years service I have, nor any projections for my paid-up pension as it is, as I left RM some years ago.

I am wondering if this letter with a PO box number in Darlington is actually a scam
, because it seems to be phishing for more details about my pension that *they* should already have, but I am currently unaware of...?

Any details of "Lump Sums" - are being asked OF me rather than given to me
The actual pension offer seems to be about 98% less than what I anticipated
Eg "A pension of £300 per annum" rather than "£300 per week".
There's no defined benefits mentioned.
There's no name of the other provider I switched to before I left - mentioned.

The email address I replied to - replied asking me for personal info "so they could find my file" as the reference number they gave on their own letter sent to me - isn't enough apparently to dig up details of my pension plan that's been there for years and years... IF they are the genuine provider that is...


So folks - Is this a cynical attempt to get us shortly-to-retire members to sign over our pensions to some cheating outfit that'll pocket 98% OF our geuine pension, whilst we sign up to a pittance that won't even keep us in beer old age, let alone pay the bills....
Is there any connection with the takeover of RM by a foreign outfit?


Is there a way of contacting our genuine Royal Mail pension providor directly, without having to go through a switchboard/non geograhic numbers?
Is there an office block somewhere in England where one can walk in and sit down to disucss with anyone?

For most people the larger part of the pension is going to come from capita - RMSPS TEL-03332220078

and a small amount is also paid from RMPP TEL -03456030043

when completing paperwork for them, they don't seem able to talk to each other, but capita will need information from RMPP to pay you on time, so the best solution is to call them for the figures.

[Winseer]

Thanks for the reply.

Are the two pensions split because didn't some CARE one take over around 2008, leaving all us oldies in the POPS high and dry somehow?

I'm not getting any literature through about taking my retirement @ 60 rather than waiting until 65 or later...

I got a letter through about a year ago stating I had a pension to come of around £314 per week, but no mention of lump sums in *that*.

It has also been recommended to me that I in no way "transfer out" or "cash in" my old fashioned "Defined Benefits" pension, aka a "Gold plated" one akin to the civil service pension, as when I joined RM - one was considered a "Public Servant" working there....

So... This CAPITA is the half I've not yet heard from....
I'll give that number you gave me a call tomorrow.
Thanks for that.

[mrcurve]

Thanks for the reply.

Are the two pensions split because didn't some CARE one take over around 2008, leaving all us oldies in the POPS high and dry somehow?

I'm not getting any literature through about taking my retirement @ 60 rather than waiting until 65 or later...

I got a letter through about a year ago stating I had a pension to come of around £314 per week, but no mention of lump sums in *that*.

It has also been recommended to me that I in no way "transfer out" or "cash in" my old fashioned "Defined Benefits" pension, aka a "Gold plated" one akin to the civil service pension, as when I joined RM - one was considered a "Public Servant" working there....

So... This CAPITA is the half I've not yet heard from....
I'll give that number you gave me a call tomorrow.
Thanks for that.

Pops was rolled into the POSSS, mostly due to the trouble pops was in and the surplus in POSSS, maybe the pension holiday from the employer played a part too.

I would check your letter about £314 a week it seems a little high, maybe a managers or nightshift may have elevated your wage, but although the pension had a pretty good return, it is still based on our pensionable earnings, and uniform wages were never that great without overtime, or shift allowances.

POSSS, was a good pension, maybe done in by a 13-year pension holiday taken by Royal Mail, and increased life expectancy, it ended up being closed. and replaced by a career defined scheme, also now closed, I really don't understand what came next, it seems to have become a pot of mostly taxable cash. Now replaced again by a new scheme.



and of course, different retirement ages

before April 1987 section a/b
from April 1987 section c
1 APRIL 2018 section f

and some other schemes I don't know about and the new CDC Scheme.

https://www.royalmailpensionplan.co.uk/about-the-rmpp/


anyway thats how I remember it, I am happy to be corrected, its just my recall of events, and a bit of google.

[RobertT]

POSSS and POPS merged in 1999 to form the RM Pension Plan. Meaning POSSS became section A/B and POPS became section C.

POSSS/section A/B closed to new entrants in 1987 to be replaced by POPS/section C which then closed to new entrants in 2008.
Both continued to be open to existing members until 2024.

The final salary scheme closed for section A, B & C members in 2008 and was replaced for them with an average salary scheme between 2008 - 2018 and that was subsequently replaced by the Cash Balance(DBCBS) until 2024.

The Normal Retirement Age for section A, B & C members is 60 for pension accrued up to 2010, and 65 for pension accrued 2010-2018 plus the DBCBS.

The 13 year contribution holiday took place from 1990 to 2003 and was initially taken due to POSSS/section A/B being in surplus and rules at the time meant surpluses were taxable.
It went on for far too long which was one of the reasons the final salary scheme became heavily in deficit and then closed in 2008.

It's my understanding, the payment holiday related to POSSS/section A/B employer contributions only. Although I could be wrong.

Anyone joining RM after 1st April 2008 was put in the RM Defined Contribution Plan. And anyone in that for 5+ years from 2018, was given the opportunity to join the DBCBS(section F) instead.

The government took over the liabilities for all section A, B & C pensions up to 2012, as part of the privatisation of RM. That is called the RM Statutory Pension Scheme.

In October 2024 the RM Collective Pension Plan replaced all existing RM pension schemes for employees with a least 12 months service, which is a brand new concept in UK pensions. But also provided a Defined Contribution alternative, via Nest, for anyone who didn't want to join.

New employees from October 2024 are put into Nest for 12 months and then given the choice to join the RMCPP.

[sweepster70]

POSSS and POPS merged in 1999 to form the RM Pension Plan. Meaning POSSS became section A/B and POPS became section C.

POSSS/section A/B closed to new entrants in 1987 to be replaced by POPS/section C which then closed to new entrants in 2008.
Both continued to be open to existing members until 2024.

The final salary scheme closed for section A, B & C members in 2008 and was replaced for them with an average salary scheme between 2008 - 2018 and that was subsequently replaced by the Cash Balance(DBCBS) until 2024.

The Normal Retirement Age for section A, B & C members is 60 for pension accrued up to 2010, and 65 for pension accrued 2010-2018 plus the DBCBS.

The 13 year contribution holiday took place from 1990 to 2003 and was initially taken due to POSSS/section A/B being in surplus and rules at the time meant surpluses were taxable.
It went on for far too long which was one of the reasons the final salary scheme became heavily in deficit and then closed in 2008.

It's my understanding, the payment holiday related to POSSS/section A/B employer contributions only. Although I could be wrong.

Anyone joining RM after 1st April 2008 was put in the RM Defined Contribution Plan. And anyone in that for 5+ years from 2018, was given the opportunity to join the DBCBS(section F) instead.

The government took over the liabilities for all section A, B & C pensions up to 2012, as part of the privatisation of RM. That is called the RM Statutory Pension Scheme.

In October 2024 the RM Collective Pension Plan replaced all existing RM pension schemes for employees with a least 12 months service, which is a brand new concept in UK pensions. But also provided a Defined Contribution alternative, via Nest, for anyone who didn't want to join.

New employees from October 2024 are put into Nest for 12 months and then given the choice to join the RMCPP.

One thing that has always quizzed me..... If the Final salary scheme closed in 2008, why did we get an extra 2 years?
Was the new average salary scheme still NRA60 until 2010?

[RobertT]

One thing that has always quizzed me..... If the Final salary scheme closed in 2008, why did we get an extra 2 years?
Was the new average salary scheme still NRA60 until 2010?

The original plan was actually to increase the NRA to 62 in 2008 at the same time as closing the final salary scheme and replacing it with the average salary version. Then increase it again to 65 for benefits accrued from 2012 onwards.

But following a consultation, it was decided to include the first two years of average salary(2008-2010) with Age60 benefits and increase the NRA to 65 from 2010 instead.

[fred810]

It sounds like the lump sum part is tripping you up, so it might be best to give RMSPS or Capita a call.

[heapsy]

One thing that has always quizzed me..... If the Final salary scheme closed in 2008, why did we get an extra 2 years?
Was the new average salary scheme still NRA60 until 2010?

The original plan was actually to increase the NRA to 62 in 2008 at the same time as closing the final salary scheme and replacing it with the average salary version. Then increase it again to 65 for benefits accrued from 2012 onwards.

But following a consultation, it was decided to include the first two years of average salary(2008-2010) with Age60 benefits and increase the NRA to 65 from 2010 instead.

I can never understand, nor forgive thr CWU for agreeing to a retirement age 65 or beyond. Complete disgrace. I would gave even accepted a DC scheme, uf we could have kept to 60, or at a stretch, 62. They don't do the job, so they've no idea how hard it is.

[Jefferson Starfish]

One thing that has always quizzed me..... If the Final salary scheme closed in 2008, why did we get an extra 2 years?
Was the new average salary scheme still NRA60 until 2010?

The original plan was actually to increase the NRA to 62 in 2008 at the same time as closing the final salary scheme and replacing it with the average salary version. Then increase it again to 65 for benefits accrued from 2012 onwards.

But following a consultation, it was decided to include the first two years of average salary(2008-2010) with Age60 benefits and increase the NRA to 65 from 2010 instead.

I can never understand, nor forgive thr CWU for agreeing to a retirement age 65 or beyond. Complete disgrace. I would gave even accepted a DC scheme, uf we could have kept to 60, or at a stretch, 62. They don't do the job, so they've no idea how hard it is.

Did the union have any say over it?