Rmdcp Vs dbcbs

[rogersh]

I think I am right in calculating that the £25,000 pensionable pay stated in the DBCBS contributions then has a deduction of LED £3,753 = £21,247 x 6% = £1,275 (employee annual) & 13.6% = £2,890 (employer annual).

This may seem obvious to some, but I believe this could have been clarified for those who are trying to work out 6% of £25,000 pensionable pay!!!

[milly]

Not sure what do.
How is the new scheme going to be invested?is it going to be invested in an ultra cautious manner like our current pension.
I am edging towards the RMDCP to be honest.

[Hawkey99]

Im the same as a few others with coming on for 25% in my AVCs.

So just to clarify what you said earlier Robert, can you take your AVC as your 25% tax free lump sum and transfer the money in your new DBCBS to a SIPP.

If so what percentage would be tax free.

Thank you.

[RobertT]

I think I misread the booklet somewhere along the way, and after a second read, I have corrected my mistake. Sorry about that.

However I do think the booklet is very confusing:

On page 10 it says:

Members would also have the option to:
• take the DBCBS lump sum as taxable cash, where the lump sum is above the 25% tax-free limit
• transfer it to an external pension arrangement for drawdown
• or purchase an annuity

Then on page 11 it says:

For current members of RMPP, DBCBS benefits cannot be taken separately to other RMPP benefits – DBCBS benefits have to be taken with Age 60 or Age 65 benefits (to link with RMPP and RMSPS benefits).

And:

DBCBS members who leave the scheme will be able to transfer out their DBCBS benefits if they wish . However, there may be an adjustment to the
value of DBCBS benefits on transfer to reflect market conditions at that time.

So as usual with RM, it's all as clear as mud!

[garnery]

I have not received my booklet yet. However, the original plan was for us to be able to take dbcbs with nra 60 or 65. That then changed to nra 65. Now it may be 60 or 65 again. Very confusing

[Navalron]

Another one to look out for is that ESA (EMPLOYMENT SUPPORT ALLOWANCE) is only paid for yourself for the first six months when you first claim unless you get put into the SUPPORT group, which means you really need to be really badly ill. Also ESA is gradually being done away with region by region throughout the UK and being replaced with universal credit. Basically what it means is that all your wife or partners earnings, savings or pension will be taken I to account after your first twenty six weeks. Just look it up in DWP website. Well done union, another cracking deal. Wtf.

[rambo1]

How on earth is your average joe gonna be able to make the correct decision with this? I'm going with the rmppdc,bsxyx option. Don't trust pensions full stop. Well done royal mail for totally confusing your workforce again.

[nataddick]

The wonderful informative letter/booklet to RMPP members from RM outlining the latest Pensions Agreement was waiting for me after I got in from work on Wednesday and so I put it to one side that evening suffering from work fatigue ! Yesterday, I read the first 12 pages and went through them with a highlighter pen to consider my key points/issues. Today, I read the rest and highlighted the pages in the same manner. Mental fatigue beat the physical version, by some distance.

Now, I consider myself reasonably clued up on financial matters and pensions in particular. So, it comes as no surprise to me that my colleagues struggle when receiving such a document that presents options for the transitional scheme and the new CDC scheme that have both been designed to ‘persuade’ the majority to opt for the preferred path chosen and ‘endorsed’ jointly by RM and the CWU, per the latest agreement.

Is it just me, but I find myself presented with a joint RM/CWU pensions agreement to consider which is NOT open to any form of amendment from RM pension scheme or CWU members, other than by voting in a ballot that requires us to vote on ALL 4 Pillars ? Even though CDC is a dream not a reality.

The immediate choice is per the topic heading but should the longer term choice be RMDCP v DBCBS and CDC ?

For me, there are now so many positives in favour of the DBCBS, some of them mentioned by Jet and Robert, that outweigh the latest negative design of RMDCP that financial logic dictates I elect for DBCBS.

[garnery]

I have not had any mail since last monday so not received my booklet. Are we going to be allowed to take the cash balance scheme which starts building up next month with our nra60 benefits ??
Or is it only with nra65 benefits ??
Any ideas ? Thanks

[yorkmover123]

DBCBS benefits in the RMPP from 1 April 2018 you do not need to do
anything. This will happen automatically on 1 April 2018.


If you would prefer to opt out of the DBCBS and join the RMDCP, please complete the ‘Joining RMDCP’

Which one is offers the best Pension i have 27 years service do I stay in the RMPP or join the RMDCP not what to do ?

[fishtank]

I think you have to look at the end game, do you want to be in the CDC scheme or the RMDCP scheme?

I can't see Royal Mail being able to force existing members out of an individual DC scheme and they wouldn't be giving RMPP members the option of joining if they planned to close it but if you enter a scheme like the DBCBS voluntarily knowing it's only a transitionary scheme you have to follow the rabbit all the way to the end and that's the CDC scheme not the RMDCP scheme.

If that's what you want then fine.

[RobertT]

I have not had any mail since last monday so not received my booklet. Are we going to be allowed to take the cash balance scheme which starts building up next month with our nra60 benefits ??
Or is it only with nra65 benefits ??
Any ideas ? Thanks

Details are in the agreement which is downloadable from this site. Or you can download the guides from myroyalmail:

RMPP members guide: https://www.myroyalmail.com/pensions/rm-pension-plan" onclick="window.open(this.href);return false;
RMDCP members guides: https://www.myroyalmail.com/pensions/ro ... ution-plan" onclick="window.open(this.href);return false;

[RobertT]

I think you have to look at the end game, do you want to be in the CDC scheme or the RMDCP scheme?

I can't see Royal Mail being able to force existing members out of an individual DC scheme and they wouldn't be giving RMPP members the option of joining if they planned to close it but if you enter a scheme like the DBCBS voluntarily knowing it's only a transitionary scheme you have to follow the rabbit all the way to the end and that's the CDC scheme not the RMDCP scheme.

If that's what you want then fine.

The literature seems to suggest the CDC scheme, should it be implemented, is going to be ‘one scheme for all RM employees’.

If that is the case then the initial decision we have to make is to go into either the DBCBS, the RMDCP or to opt out completely.
The second decision upon the CDC legislation going through would then be CDC or opt out.

[RobertT]

DBCBS benefits in the RMPP from 1 April 2018 you do not need to do
anything. This will happen automatically on 1 April 2018.

If you would prefer to opt out of the DBCBS and join the RMDCP, please complete the ‘Joining RMDCP’

Which one is offers the best Pension i have 27 years service do I stay in the RMPP or join the RMDCP not what to do ?

Neither the DBCBS or the RMDCP offers a pension as such – with both schemes all you’re doing is building up a pot of money!

Most current RMPP members are in section C and don’t get a lump sum as standard, but most choose to give up some pension to get a lump sum, of up to 25% of the value of their benefits.

The DBCBS will be part of the RMPP and will provide a ‘cash balance’ so you don’t have to give up as much pension or possibly no pension at all to get a lump sum. Therefore you don’t actually build up any more pension from 1st April 2018, but you will get to keep more of the pension you accrued before that date.

The RMDCP is separate from the RMPP and is basically the same as a personal pension but you have the benefit of contributions off RM too. It will not have an NRA other than the legal minimum age of 55 and all it does is provide you with a pot of money with which you have different options. This gives more info: https://www.moneyadviceservice.org.uk/e ... on-schemes" onclick="window.open(this.href);return false;

Personally and in general I think the DBCBS is the best option for most people already in the RMPP(sections A, B &C) because you’re making the most of the benefits you’ve already built up. And you’ll be getting a larger income for the rest of your life.

Whereas the RMDCP is a completely different concept altogether which provides more flexibility, but if you want it to provide a lifetime income via an annuity, the returns are likely to be lower.

[rambo1]

This dbcbs lump sum, is it taxable and can you get it at 55 when you retire at 55. Obviously the longer you pay into it the bigger then lump sum will become. ????