Pension Supplement

[Ady128]

Does anyone know how much the pension supplement actually is? I’m 65 now and would like to know how much my pension will reduce by when I’m 67. Many thanks.

[RobertT]

The supplement built up at the rate of 1/60th of the Lower Earnings Deduction for each full year of section C membership, but stopped when the pension closed to future accrual in 2018.
It will also have risen with inflation.

So how much of your RM pension relates to the supplement will obviously vary with the individual.

I'm sure a determined person might be able to come up with a ball park figure. But when you consider you'll be getting £12,500 from the state pension(based on April 2026 figures & assuming you qualify for the full amount), what you lose in supplement is small compared to what you'll be gaining from the state.

[Ady128]

I’ve seen a figure of £3328(?) being mentioned. Does my pension reduce by that or a proportion of that figure?

[RobertT]

That's the LED – up to around 1999/2000 it increased each year, but then they froze it at that amount.
To make it easy, just use £3,328.

Each year your supplement grew by 1/60th of the LED, which is £55.46(3,328 divided by 60).

So just multiply £55.46 by however many years you paid into the pension from joining to 2018, and that will give you an idea of how much supplement you accrued.

Inflation will have increased that amount further.

But taking your pension/s before NRA will have reduced it.

[derekm]

Can I ask what is the pension supplement??

[spaceman07]

Can I ask what is the pension supplement??

It's an additional payment which completes your pension or improves it until you reach state pension age then it stops. I'm in the process of receiving mine now.

[Ady128]

I joined in 1991 and retired in 2018 so I’ve calculated it to be £124 a month, roughly.

[spaceman07]

I joined at the start of 1989 although mine would get a deduction as i took my pensions at 55. At that point i was quoted about £1500, I'm 59 soon and I'm assuming the deduction is to the point of taking the supplement. Then again I suppose there will be say 4 years of supplement rises to be factored in, should know more once i receive it at the end of April.

[derekm]

Can I ask what is the pension supplement??

It's an additional payment which completes your pension or improves it until you reach state pension age then it stops. I'm in the process of receiving mine now.

Is that through capita or rmps mate.cheers

[spaceman07]

It's both but capita deals with the bulk of the payment. You should get a P45 once you've left the business and informed of your last day of employment. The pension side of it will naturally be informed in time but it's best to inform them personally. The supplement then gets back dated from your last day.

[Delbhoy]

It's both but capita deals with the bulk of the payment. You should get a P45 once you've left the business and informed of your last day of employment. The pension side of it will naturally be informed in time but it's best to inform them personally. The supplement then gets back dated from your last day.

cheers mate approaching 65 so good to know.

[RobertT]

I joined in 1991 and retired in 2018 so I’ve calculated it to be £124 a month, roughly.

Add on the annual inflationary increases since you left, which are RPI capped at 5% for section C pensions in payment, and you're looking at a total of about 30% increase on your original amount in 2018. That includes the forthcoming April 2026 increase.

[RobertT]

I'm assuming the deduction is to the point of taking the supplement.

The early payment deduction for the supplement applies until state pension age.