Early retirement

[ROSSCO]

I am asking on behalf of a work mate.
He has requested a statement of pension benefits from his 55th birthday.

The statement contains age 60 and 65 benefits payable.

When both of these are added together his annual standard pension would be £2854
and his maximum lump sum would be £2233
with a lump sum of £14893

Do you add together the first 2 figures and divide by 52 to give your weekly pension amount?

Am I right in thinking he has given up 25% on age 60 and 50% on age 65?

He was told he had to request and sign another form to receive the other part of his pension, what part is that?

Thanks

[RobertT]

I am asking on behalf of a work mate.
He has requested a statement of pension benefits from his 55th birthday.

The statement contains age 60 and 65 benefits payable.

When both of these are added together his annual standard pension would be £2854
and his maximum lump sum would be £2233
with a lump sum of £14893

Sorry, but that doesn't really make sense. Is his lump sum £2233 or £14893?

Do you add together the first 2 figures and divide by 52 to give your weekly pension amount?

He will have a pension from both NRA60 and NRA65 they need to be added together and divided by 52. If he is in section B he'll have a lump sum as standard. If he's in section C, he can give up some pension to get a lump sum.

Am I right in thinking he has given up 25% on age 60 and 50% on age 65?

Yes.

He was told he had to request and sign another form to receive the other part of his pension, what part is that?
Thanks

Presumably the supplement, the DBCBS which started in April, or perhaps any AVC's(Bonusplan or Flexiplan) he's paid.

[ROSSCO]

Thanks for replying

I,ve probably explained it badly.

It says benefits payable are as follows


Table A: Age 60 Benefits payable
Option Annual pension Pension supplement Lump sum
1. Standard Benefits £1852.10 £0.00 N/A
2. Maximum Lump sum £1439.16 £0.00 £9594.48

Table B : Age 65 Benefits payable
1.Standard Benefits £1002.26 £0.00 N/A
2. Maximum Lump Sum £794.83 £0.00 £5298.91

Table C : Total Benefits Payable
1.Standard Benefits £2854.36 £0.00 N/A
2.Maximum Lump Sum £2233.99 £0.00 £14893.39

Hopefully that's easier to understand.

[RobertT]

Ok so he's in section C as theoretically he gets a supplement, although if he's going to continue working for RM he won't! That is only payable if you leave RM and until state pension age.

Table A relates to his NRA60 pension and he has the choice of:

1. taking the pension with no lump sum; or
2. taking the maximum 25% lump sum and a reduced pension

He has a similar choice with his NRA65 benefits(Table B)

Table C is the two added together.

So if he wants to take both, the maximum pension he'll get is £2,854 but no lump sum; or
If he wants the maximum lump sum he'll get a pension of £2,223 and a lump sum of £14,983

He also has the option of taking a smaller lump sum from either NRA60 or NRA65 if he chooses, and therefore getting a bigger pension.

[ROSSCO]

Thank You Robert for your superb knowledge. That's been a great help

[Hawkey99]

Hi Robert,

Would the supplement be included in the figures that are quoted or are these separate on top of the quote.

Thanks

[RobertT]

Hi Robert,
Would the supplement be included in the figures that are quoted or are these separate on top of the quote.
Thanks

Going by the figures that Rossco has quoted, the supplement is not included.

Table A: Age 60 Benefits payable
Option Annual pension Pension supplement Lump sum
1. Standard Benefits £1852.10 £0.00 N/A
2. Maximum Lump sum £1439.16 £0.00 £9594.48

What the above means is:

1. Standard benefits = a pension of £1,852 / no supplement / lump sum not applicable; or
2. Maximum lump sum = a pension of £1,438 / no supplement / max(25%) lump sum of £9, 594

The PSC are assuming that because Rossco's mate is 55, he'll be continuing to work for RM and so won't get a supplement.
If he were to leave RM he would become then be eligible to get the supplement.

I'm not old enough to get a quote so don't have any personal experience. But if you're planning on leaving RM, then I suggest you tell the PSC that you want a quote that includes the supplement.

[Ginge]

Rossco,how many years service does your friend have?

[ROSSCO]

He's done 36 yrs. 20 yrs full time and currently 16yrs on 25 hrs.

He still says he will be receiving another statement as when he contacted pensions they could only send some of the details and he would have to write and sign a letter they sent to receive a second part.
Afraid I no very little on pensions but am learning as I go along.

[RobertT]

He's done 36 yrs. 20 yrs full time and currently 16yrs on 25 hrs.

He still says he will be receiving another statement as when he contacted pensions they could only send some of the details and he would have to write and sign a letter they sent to receive a second part.
Afraid I no very little on pensions but am learning as I go along.

There seems to be an anomaly here!

With 36 years service he should be in section B, as that applies to people who joined the RM pension from 1st December 1971 to 31st March 1987. So he presumably would have started in 1982?

But the info you've given seems to suggest he's in section C, which replaced B on 1st April 1987 and closed to new starters on 31st March 2008.

His final salary pension(upto 2008) will have been reduced when he went part time, and obviously he will have accrued less pension since then because he's been working less hours. But the NRA60 figures in particular seem very low to me, even with the early payment reductions.

Did he actually join the pension at a later date – some years after he joined RM?

His pay slip will tell him which section he's in. My section C contribution reads: PSE Adj RMPP DBCBS C

[NWpostie]

That's not much for 36 years service.

[ROSSCO]

He's done 36 yrs. 20 yrs full time and currently 16yrs on 25 hrs.

He still says he will be receiving another statement as when he contacted pensions they could only send some of the details and he would have to write and sign a letter they sent to receive a second part.
Afraid I no very little on pensions but am learning as I go along.

There seems to be an anomaly here!

With 36 years service he should be in section B, as that applies to people who joined the RM pension from 1st December 1971 to 31st March 1987. So he presumably would have started in 1982?

But the info you've given seems to suggest he's in section C, which replaced B on 1st April 1987 and closed to new starters on 31st March 2008.

His final salary pension(upto 2008) will have been reduced when he went part time, and obviously he will have accrued less pension since then because he's been working less hours. But the NRA60 figures in particular seem very low to me, even with the early payment reductions.

Did he actually join the pension at a later date – some years after he joined RM?


His pay slip will tell him which section he's in. My section C contribution reads: PSE Adj RMPP DBCBS C

He started in 1981 and left the job in 1996 and then returned again after about 16 months in 1998. Could this be the cause of the anomaly?
He believes he's waiting for a statement on the first 15 yrs he did?

[RobertT]

So he's got roughly 15 years in Section B and about 20 years in section C.

The numbers you gave were just for his section C pension, and as you say, the figures he's waiting for are for his section B entitlement.

If only you'd told us he'd left and then returned in the first place. Lol!

[ROSSCO]

Sorry