AVC transfer opt out election form

[Rapido123]

Hi, have to be in touch with the pension service centre about transferring out my AVC’s I have finally received the documentation. On the transfer opt out election form it states this paragraph “ I understand, in order to transfer my Royal mail pension plan (RMPP) AVC plan benefits out to another pension scheme. I’m required to opt out of the Royal mail pension plan and this is my election to opt out of the RMPP”.
It might just be me, but it sounds as though I’m opting out of the entire scheme, but I assume it means just the Avcs. My question is does this have any effect on my RMPP benefits. Also, the documentation seems out of date as it mentions the cessation of contributions to the bonus plan will mean termination of your active membership of the plan. But as I am aware the plan is no longer running and as I have seen from other posts you can now transfer the bonus plan if you wish to, thanks for any help.

[RobertT]

Sounds like typical incompetence from the RMPP pension service centre to me!

It was possible to transfer out Bonusplan while the RMPP was still open and you were still employed. But you effectively had to opt out of the whole scheme in the process. Meaning no more accrual of pension(pre 2018) and no more contributions into the DBCBS(post 2018).

But that changed once the scheme closed in October 2024 and the new RMCPP began, and was also the case if you'd already left RM.

There is now no restrictions on transferring Bonusplan and there's never been any with Flexiplan, and transferring out AVC's won't affect any of your Age60, Age65 or DBCBS benefits.

I transferred my Bonusplan after I'd left the company and had to fill in a few forms which I photocopied and kept for future reference. The important one being a 'transfer authority AVC form'.
None of them were called 'transfer opt out election form'!
So it sounds as if they might have sent wrong or out of date forms.

I would suggest you contact them for guidance before you continue with the forms you've got.

[Rapido123]

Thank you

[Hyrrokkin]

RobertT hit the nail on the head as usual

I am in the process of transferring my AVC's (Flexiplan/Bonusplan) to another provider...still ongoing !!!

I had to fill in the same form (twice i may add - do not get me started on RM pensions as RobertT well knows of their ehem 'competence').
I had the exact same concerns and contacted RM pensions - basically it seems to be a box ticking legal exercise from the days when the old RMPP pension was still going.

Edited RM pensions email reply stated "The forms sent only refer to transfering the AVC values you hold and have no effect on the pension plan benefits you hold."

Transferring your AVC's does not affect your RMPP main pension benefits - the wording is just confusing and they seem to be too lazy to update their forms

[heapsy]

Hi, have to be in touch with the pension service centre about transferring out my AVC’s I have finally received the documentation. On the transfer opt out election form it states this paragraph “ I understand, in order to transfer my Royal mail pension plan (RMPP) AVC plan benefits out to another pension scheme. I’m required to opt out of the Royal mail pension plan and this is my election to opt out of the RMPP”.
It might just be me, but it sounds as though I’m opting out of the entire scheme, but I assume it means just the Avcs. My question is does this have any effect on my RMPP benefits. Also, the documentation seems out of date as it mentions the cessation of contributions to the bonus plan will mean termination of your active membership of the plan. But as I am aware the plan is no longer running and as I have seen from other posts you can now transfer the bonus plan if you wish to, thanks for any help.

It is important to remember, that if you transfer your AVCs to another pension scheme, only 25% of the money will be tax free. So although you will increase the size of your other pension, you will increase your tax liability. Is it worth it?

[RobertT]

It's also worth noting that the other 75% will not automatically be taxed.

Depending on the amounts involved, how much other income you have from pensions and wages, and how you access it, it's perfectly possible to take all cash in a personal pension completely tax free.

As ever with these things, it will come down to the individuals circumstances and choices as to whether it's a good move from a tax point of view.

[Hyrrokkin]

RobertT hit the nail on the head as usual

I am in the process of transferring my AVC's (Flexiplan/Bonusplan) to another provider...still ongoing !!!

I had to fill in the same form (twice i may add - do not get me started on RM pensions as RobertT well knows of their ehem 'competence').
I had the exact same concerns and contacted RM pensions - basically it seems to be a box ticking legal exercise from the days when the old RMPP pension was still going.

Edited RM pensions email reply stated "The forms sent only refer to transfering the AVC values you hold and have no effect on the pension plan benefits you hold."

Transferring your AVC's does not affect your RMPP main pension benefits - the wording is just confusing and they seem to be too lazy to update their forms

Thought i would give an update without starting a new thread - regarding my AVC transfer in case anyone will do the same in the future

The transfer is nearly done and has been confirmed soon to my new provider.

Anyone thinking of transferring their AVC's should note the following

I would contact RM Pensions by phone rather than email - it is quicker you can wait days for an email reply.

Make sure you fill in the forms exactly - the correct details including pension name,type,personal details etc...RM are strict on that.

RM might ask you to fill in the same forms more than once...annoying but what can you do.

Be prepared to wait for the transfer to your new provider to go though-once your AVC's are in withdrawal (in my case a little while ago) i will have had to wait quite a few days for it to go to my new provider...someone is making interest on that money but it's not me.!! (which i will be enquiring about)

You will have to be patient and if necessary update your new provider on any updates so they can contact RM and push the transfer faster.

All in all happy to be finished but it takes far too long and is a pain in the backside

Edit to say of course this is my experience might be different for others..........

[NorthernBoy]

Was transferring your AVCs done at the same time as you taking your main pensions? Or have they been done separately

[Hyrrokkin]

Was transferring your AVCs done at the same time as you taking your main pensions? Or have they been done separately

If you mean me - separately

[NorthernBoy]

Was transferring your AVCs done at the same time as you taking your main pensions? Or have they been done separately

If you mean me - separately

Am about to transfer my AVCs out but doing it at the same time as taking my main pension payments. Am hoping it’s doesn’t take them months to sort the transfer out.

[Hyrrokkin]

Was transferring your AVCs done at the same time as you taking your main pensions? Or have they been done separately

If you mean me - separately

Am about to transfer my AVCs out but doing it at the same time as taking my main pension payments. Am hoping it’s doesn’t take them months to sort the transfer out.

To be fair it does say it can take up to 6 weeks and mine is just a few weeks over

But in this day and age still doing it by paper can be frustrating and time consuming

Good luck