Pension Question

[Morethan16KG]

On leaving RM.... what happens to your pension if you are below retirement age?

[arnold cheshire]

On leaving RM.... what happens to your pension if you are below retirement age?

moya spends it on shoes

[Morethan16KG]

lol.... seriously though...any ideas?

[motch]

and hats ??

[arnold cheshire]

On leaving RM.... what happens to your pension if you are below retirement age?

it gets frozen and you hope for the best on retirement age

[arnold cheshire]

On leaving RM.... what happens to your pension if you are below retirement age?

what would happen if i stopped paying in aswell ?

[Lincox]

If you have been in the pension for less than two years you can opt for a refund of premiums paid, less a deduction for tax. Otherwise the benefits accrued to date will become paid up. They will increase in line with the terms and conditions of the pension scheme, which is normally the rate of inflation or a certain rate of growth, normally around 5%, whichever is the lower. So if inflation is 7% the increase would only be 5%. If inflation is below 5% then it would be by the rate of inflation. This is for the Final Salary Scheme and the Career Average Scheme. Those who have paid into the Defined Contribution Scheme, the value of your fund would rise and fall based on the performance of the underlying funds you have chosen to invest in.

[RobertT]

Info can be found on the following sites:

Employees who joined the pension before April 2008 and are therefore in Secions A,B or C of the final / average salary scheme.
http://royalmailpensionplan.co.uk/55/pensions-brochures" onclick="window.open(this.href);return false;

Employees who joined the pension after April 2008 and are therefore in the Defined contribution scheme.
https://www.zurich.co.uk/royalmaildcpla ... uction.htm" onclick="window.open(this.href);return false;

[hans solo]

can u not transfer it to another scheme

[Lincox]

Yes if the receiving scheme is willing to accept it. Beware of any transfer costs though.

[RobertT]

can u not transfer it to another scheme

Yes you can, but transferring a salary based pension into anything other than another salary based scheme with similar benefits, is almost always a wrong decision.

[hans solo]

it may not be a wrong decision to do it before privatisation maybe we should all pull out , lobby private pension company
get a better deal and fcuk rm . it should be possible but im sure cwu have checked all this out already for us

[RobertT]

it may not be a wrong decision to do it before privatisation maybe we should all pull out , lobby private pension company
get a better deal and fcuk rm . it should be possible but im sure cwu have checked all this out already for us

Why on earth would you want to wave goodbye to an index linked government backed pension in return for one that's at the mercy of the stock market?

[Lincox]

You are correct RobertT based on the current Final Salary/Career Average schemes, but if we are privatised, how much longer will they be available, and will the new company owners/shareholders be prepared to pay a percentage of salary into a defined contribution scheme.

[hans solo]

thats the trap