Joining the DBCBS pension scheme.

Dingo99 · Post by **Dingo99** » 02 Mar 2018, 19:34

Hi guys any reps out there that can help? My rep, I never see him and don't have much faith in him. I received a form that gave me loads of info that goes over my head. I am currently in the RMDCP pension and received in the post a booklet and a form I can fill out if I want to join the DBCBS pension scheme. Should I join or stick with the RMDCP pension? All this pension malarkey just confuses me and any guidance will be greatly appreciated, I am full time if that has any bearing on it and at current pay the minimum into my current RMDCP pension. Thanks a lot guys really don't know what to do here. Oh sorry if this has already been posted by the way.

Thanks :)
Dan

cliffeyhez · Post by **cliffeyhez** » 02 Mar 2018, 19:45

Also can anyone enlighten me as to the sense of a transition scheme to enter into a pension scheme that at present is not lawful. Why can't we wait to for the necessary legislation to be be obtained in Parliament before we proceed.
If the necessary laws are not passed where do we go from there.
Any explanation would be greatly appreciated.

Post by **rambo1** » 02 Mar 2018, 20:13

It's all very complicated! A lot of letters ( unlike royal mail, we don't do letters anymore do we, lol) confusing us rmpxyz or whatever. Nice they give us 2weeks to try and suss it out before we have to tick a box. Robert T , where are you. Please help.

Post by **kevbo** » 03 Mar 2018, 16:34

Dingo99 wrote:Hi guys any reps out there that can help? My rep, I never see him and don't have much faith in him. I received a form that gave me loads of info that goes over my head. I am currently in the RMDCP pension and received in the post a booklet and a form I can fill out if I want to join the DBCBS pension scheme. Should I join or stick with the RMDCP pension? All this pension malarkey just confuses me and any guidance will be greatly appreciated, I am full time if that has any bearing on it and at current pay the minimum into my current RMDCP pension. Thanks a lot guys really don't know what to do here. Oh sorry if this has already been posted by the way.

Thanks :)
Dan

Not an expert on pensions but just looking at the contribution examples in the booklet it looks like more goes into the pot for less conts. from you in the DBCBS scheme. Have a read of the booklet and compare the examples. It's fairly plain English. For what it's worth I've gone for DBCBS. I know there is more to it than that and I'm sure people on here who know more about both schemes can give more info.

jetblack · Post by **jetblack** » 03 Mar 2018, 17:36

Your union rep is not a financial adviser. And if you don't wish to employ/pay for one then I reckon its up to yourself to show due diligence TBH. You will be aided in that by having a look over at the pensions sub forum - as this is outwith the unions remit.

Post by **kevbo** » 03 Mar 2018, 18:01

Also the fact you aren’t allowed to join the DBCBS without 5 years service was enough to convince me it is the better scheme.

Post by **postiewhite** » 04 Mar 2018, 09:19

I have 4yrs of service. Im in the RMDCP and I pay the maximum of 6%. So am I right in saying that I wont get a weekly pension at retirement age,I will just get a lump sum???? So employees that have less than 5yrs cannot change this with Royal Mail? I was under the impression for the time ive been employed with RM that I would get a weekly pension.

fishtank · Post by **fishtank** » 04 Mar 2018, 09:26

postiewhite wrote:I have 4yrs of service. Im in the RMDCP and I pay the maximum of 6%. So am I right in saying that I wont get a weekly pension at retirement age,I will just get a lump sum???? So employees that have less than 5yrs cannot change this with Royal Mail? I was under the impression for the time ive been employed with RM that I would get a weekly pension.

The scheme you are in RMDCP does not provide a weekly pension, neither does the DBCBS. Both provide a lump sum, at the point of retirement it would be up to you to convert that lump sum into a weekly income if you so wished.

The idea is that the future CDC will potentially provide a regular income.

Mikky · Post by **Mikky** » 04 Mar 2018, 12:24

At a first glance it looks like a nobrainer to switch to the DBCBS scheme from RMDC.

However the total loss of flexibility and the bias in the proposal documents (against remaining in the RMDC) I recieved through my door make me very concerned.

Is the pot secure against future raids? Who is investing it? The target rate looks more like a savings account than a pension invested for growth.
I would rather be able to access the money/drawdown if I needed it, than have a set income of Royal mails chosing in 35 years time (or whenever Royal Mail decide it is in there best interest!)

The CBS scheme looks like an attempt to avoid some market risk by taking on royal mail risk instead, I think I will be keeping my protected pot and zurichs limited range of funds over that.

Celgar · Post by **Celgar** » 09 Mar 2018, 11:47

To be honest I haven't opened the latest pension mailing so I think I will look at it now. The government isn't that keen on the CDC proposal and have made comments regarding whether it will be a popular method or not. They have also questioned whether it will be able to operate within the pensions freedom legislation. It does sound like it won't be given the go ahead by the government.