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Cash balance increase

Royal Mail pension news and discussion.Please note the advise given in this forum is unofficial, please use the links we have for a more detailed response or see an independent financial adviser.
Jefferson Starfish
Posts: 899
Joined: 12 Aug 2011, 15:32
Gender: Female
Location: Greendale DO

Cash balance increase

Post by Jefferson Starfish »

Any news on how much the cash balance scheme will be increasing this year?
RobertT
EX ROYAL MAIL
Posts: 6645
Joined: 09 Sep 2007, 14:26
Gender: Male

Re: Cash balance increase

Post by RobertT »

The annual DBCBS increases are decided by RM rather than RMPP trustees, and are discretionary so there's no guarantee we'll get one every year. But once they're added they are guaranteed.

I've been keeping my eyes on the RMPP website and MyRoyalMail without any joy, and I'm not on Workplace so don't know if it's been announced on there. So I can't answer your question I'm afraid.

Any increase should be added on the 31st March and under the rules of the scheme, is a maximum of CPI + 4%.

Previous years increases were:

2020 – 3.7%
2021 – 1.7%
Links to all RM pension related websites are here
RobertT
EX ROYAL MAIL
Posts: 6645
Joined: 09 Sep 2007, 14:26
Gender: Male

Re: Cash balance increase

Post by RobertT »

https://www.royalmailpensionplan.co.uk/news

Benefits building up in the RMPP after 1 April 2018 are normally increased each year in accordance with a policy set by Royal Mail Group (RMG). This is based on market conditions from time to time, but the aim is to provide an above inflation increase. We’re pleased to advise that the benefits built up in the Cash Balance fund as at 31 March 2021 for current employees (or those who left since 1 April 2018) were increased on 1 April 2022 by 4.6%. This met RMG’s aim of providing an increase above inflation (based on the CPI measure of 3.1%).
Links to all RM pension related websites are here