Confused about my pension illustration

[diggers]

My illustration arrived saying that my potential pensionable service at age 60 will be just under 25 years.

Bear in mind I have worked for RM for nearly three years, and am only 30 now. By my reckoning I should (if I can stand this nonsense that long) be able to rack up about 33 years of service.

In the Q & A section after, it tells me that my potential service is reduced due to being on a part-time (30 hour) contract.

To my way of thinking, they already don't pay me a full pension because I don't work 40 hours, how can they be taking years off my service too?

In other words, I may only be earning 30 hours worth of pay, but I ought to receive 33 years at 30 hours per week. As it stands, I will get 24 years 281 days at 30 hours a week.

How are they able to take money from both ends like this?

[Stormproof]

I've been back working for RM for just over 4 years, but they say I've only got 2 years 165 days worth of pension, I had 7 years of previous service with RM which is'nt even linked with my new pension and that is frozen until I'm 60. Did RM get there computer pension programme off the Tax Credits people? Another f**k up

[Spartacus]

My illustration arrived saying that my potential pensionable service at age 60 will be just under 25 years.

Bear in mind I have worked for RM for nearly three years, and am only 30 now. By my reckoning I should (if I can stand this nonsense that long) be able to rack up about 33 years of service.

In the Q & A section after, it tells me that my potential service is reduced due to being on a part-time (30 hour) contract.

To my way of thinking, they already don't pay me a full pension because I don't work 40 hours, how can they be taking years off my service too?

In other words, I may only be earning 30 hours worth of pay, but I ought to receive 33 years at 30 hours per week. As it stands, I will get 24 years 281 days at 30 hours a week.

How are they able to take money from both ends like this?

Because you're working thirty hours a week your pension contributions will not match those of someone working 40 hours a week. For every three weeks a full timer works you have to work four to get the same number of hours and the same contributions.

3 weeks x 40 hours = 120 hours
4 weeks x 30 hours = 120 hours.

This is why your pension illustration says that you will get less than your actual service in years.

Hope you understand what I'm getting at,on this occasion you're not getting ripped off, well no more than the rest of us

[diggers]

I'm being dense, or at least seeing this from the wrong angle. Surely the fact that I'm receiving less pensionable pay, and thus a smaller final salary at the end of it is the part that I am losing out on.

The example above (3 x 40 =120 & 4 x 30 = 120) surely only applies when both parties receive the same amount when they retire. I won't get anything like a full timers pension because I don't get as much annual salary.

As I see it I lose a quarter of the equivalent 40 hour contract to start with (40 hrs - 10 = 30hrs), then I lose a quarter of my pensionable service too.

I only expect to be penalised once for my lesser contract, not twice.

Explain it to me again, and use crayons if necessary.

[POSTMAN]

Pension helpline.

0114 241 4545

Postline.

5456 4545

[Spartacus]

I'm being dense, or at least seeing this from the wrong angle. Surely the fact that I'm receiving less pensionable pay, and thus a smaller final salary at the end of it is the part that I am losing out on.

The example above (3 x 40 =120 & 4 x 30 = 120) surely only applies when both parties receive the same amount when they retire. I won't get anything like a full timers pension because I don't get as much annual salary.

As I see it I lose a quarter of the equivalent 40 hour contract to start with (40 hrs - 10 = 30hrs), then I lose a quarter of my pensionable service too.

I only expect to be penalised once for my lesser contract, not twice.

Explain it to me again, and use crayons if necessary.

If we both started on the same day and we where the same age one of us on 20 hours and one of us on 40 hours,when we reached pensionable age one of us would have 50% more contributions than the other and would recieve a higher pension.The person working 20 hours would have to work twice as long to recieve the same benefits.

The reason your illustration is showing less years than you have service is because it's based on a 40 hour week. If we both worked for forty years one on 40 hours and one on 30 the person 0n 30 hours would only recieve 30 years service while the person who has worked 40 years would get their full 40 years.

My brain hurts now can anyone else confirm what I'm saying?

Anyone?

Little help.

Please.

[jemima]

From
ftp://ftp.royalmail.com/Downloads/publi ... _Guide.pdf

This guide explains the key features of Section C of the Royal Mail Pension
Plan (‘the Plan’). The text in bold italics is explained at the back of this guide.
If you retire at normal retirement age (60)...
Your Pension
You must complete at least two years’ qualifying service to get a pension
which is payable for life.
You will receive 1/60th of your final pensionable pay for each year of your
pensionable service together with an additional pro rata amount for part
years. The calculation year normally used for final pensionable pay is your
last year of reckonable service. The maximum pension you can get at normal
retirement age is two-thirds (40/60ths) of your final pensionable pay. You
will also receive the pension supplement until you reach State Pension Age
(see page 3).
For example
You are employed full time from 1 February 1989 and retire at age 60 on 30
June 2019, so your pensionable service totals 30 years, 150 days.
Your final pensionable pay is calculated as follows:
Your basic salary and assigned allowances
during your last year of pensionable service £18,000
Your other averaged contributory allowances £2,000
Lower Earnings Deduction (LED) - £3,328
£16,672
Your annual pension is calculated as:
£16,672 ÷ 60 x 30 years, 150 days £8,450

That is the same info that was in the booklet RM sent me when I started work
If you are part time then you won't have worked as much time in total as a full time worker would have in the same number of years
And you won't have earned as much as a full time worker would have in the same number of years
So they allow for both
I think that's how it works

[piranha]

The minute I found out about the 'black hole' in the fund
I left the scheme and opened a stakeholder pension,
which is performing very well.

I would'nt trust RM to look after my money.