Final Salary Pension NRA60

[Duran]

Just found out that when the final salary pension closed in 2008. So did the term final salary. You don't get your final salary when you finish, based on pensionable pay when you finish. You get your pensionable pay from 2008.

How can the CWU allow them to alter the terms of the pension. Yes the pension was closed.(No further years added to this pension). However the CWU should have fought to keep the terms of the pension alive.

I believe we should be getting years service upto 2008 based on final salary pensionable pay when you take it. Not based on 2008 pensionable pay.

In effect the CWU have aloud the final salary scheme to be taken away from all of us with years in prior to 2008. Who are still in service today.

Somebody please tell me, i'm wrong.

[RobertT]

You may remember changes in 2014 that de-linked actual pay from pensionable pay. Its why since then, our pension payments go up every April regardless of whether we get a pay rise.

Taken from the RMPP members guide to benefits:

Section B

After 2018 (whilst you remain in Company employment) your final salary pension (i.e. related to reckonable service up to 31 March 2008) will continue to be linked to your pensionable salary. Your CSDB pension blocks and lump sum blocks (for reckonable service from 1 April 2008 to 31 March 2018) will continue to increase in line with inflation as measured by the Retail Prices Index up to a maximum of 5%.

The definition of pensionable salary(section B) is:

This is used to calculate the part of Section A/B members’ pension benefits that relate to service before 1 April 2008 and the lump sum death benefit paid to your dependants if you die whilst still working for the Company.
It is your basic pay and London allowance at 1 April 2014 and subsequent increases that the Company deems to be pensionable, plus any pensionable allowance, in whichever of the last three years of reckonable service gives the highest amount.

Section C

After 2018 (whilst you remain in Company employment), your final salary pension (i.e. related to pensionable service up to 31 March 2008) and your CSDB pension blocks (for pensionable service from 1 April 2008 to 31 March 2018) will continue to increase in line with inflation measured using the Retail Prices Index up to a maximum of 5%.

The definition of pensionable pay(section C):

This is used to calculate the part of Section C members’ pension benefits that relate to service before 1 April 2008. It is your basic pay at 1 April 2014 and subsequent increases that the Company deems to be pensionable, plus any pensionable allowance, minus the Indexed Lower Earnings Deduction applying (which for a full-time employee is £3,328 increased each April with effect from 1 April 2014 by the increase in the Retail Prices Index for the 12 months up to the preceding September).