Cash balance fund built up from 2018

[Jefferson Starfish]

Yes, but ultimately if they are the rules, they are the rules! No?

You don't drive your car at 100 mph because the rules of the road don't wash with you!

[Woody Guthrie]

Yes, but ultimately if they are the rules, they are the rules! No?

You don't drive your car at 100 mph because the rules of the road don't wash with you!

Rules have to be justifiable, especially in a pension scheme.
There is clear justification for a speed limit, it's hard to see the justification in reducing a fixed lump sum when taking it early.

[Jefferson Starfish]

We all had a choice!

[Woody Guthrie]

We all had a choice!

I think that's a silly point.

Very few people fully understand any pension never mind the detail involved in the multiple pensions we have.

Even Robert who probably delves deeper into the pension world than most isn't entirely sure of the reasons and amount by which the DBCBS is reduced by taking it early.

A choice is only a choice if it's informed, otherwise it becomes a guess.

[RobertT]

What disappoints me most about any potential reduction in the DBCBS or pension supplement(section C) when taken early, isn't the fact that there may be one, it's that the formula for working things out isn't communicated with the membership.

We all know if we take our main RMSPS/RMPP pensions early, we can expect a 5% per year reduction, and considering the DBCBS and supplement are part of a DB scheme, then personally I think it's reasonable there is some kind of reduction in them too. Although I do understand the rationale of 'the DBCBS is basically just a savings account'.

This forum proves there are people who understand pensions and RM pensions in particular, and they can be stupidly complicated.
It also proves many haven't got a clue!

But surely in this day and age when the vast majority have access to the internet, it's possible to put more information on the pension websites to help us a bit more. Isn't that what they're for?

There used to be a pension calculator on the RMPP site, but was only available to people approaching 55 and didn't last long anyway. Pointless!!!

Some of us want to plan ahead to our retirement and are capable of doing a bit of maths to help that aim. We want to help ourselves!
But at times it seems the RMSPS and RMPP don't even want to meet half way.

Sorry I can't be of more help with the percentage reductions, etc.

[tractorboy2]

In regard to the pension supplement being reduced , surely this is so you don't exceed what someone who takes it at the proper time would receive.
Though I bet if you took it later , you wouldn't get a bigger supplement.

[RobertT]

In regard to the pension supplement being reduced , surely this is so you don't exceed what someone who takes it at the proper time would receive.

Yes it is, but the reduction would need to be more than 5% per year, as discussed in this recent thread: viewtopic.php?f=27&t=104878

Though I bet if you took it later , you wouldn't get a bigger supplement.

No you wouldn't, any more than you'd get a bigger pension.
There are arguments for and against taking your pension early, but not taking it at NRA is just depriving yourself of money for no logical reason!

[vmaxv4]

What disappoints me most about any potential reduction in the DBCBS or pension supplement(section C) when taken early, isn't the fact that there may be one, it's that the formula for working things out isn't communicated with the membership.

We all know if we take our main RMSPS/RMPP pensions early, we can expect a 5% per year reduction, and considering the DBCBS and supplement are part of a DB scheme, then personally I think it's reasonable there is some kind of reduction in them too. Although I do understand the rationale of 'the DBCBS is basically just a savings account'.

This forum proves there are people who understand pensions and RM pensions in particular, and they can be stupidly complicated.
It also proves many haven't got a clue!

But surely in this day and age when the vast majority have access to the internet, it's possible to put more information on the pension websites to help us a bit more. Isn't that what they're for?

There used to be a pension calculator on the RMPP site, but was only available to people approaching 55 and didn't last long anyway. Pointless!!!

Some of us want to plan ahead to our retirement and are capable of doing a bit of maths to help that aim. We want to help ourselves!
But at times it seems the RMSPS and RMPP don't even want to meet half way.

Sorry I can't be of more help with the percentage reductions, etc.

Couldn’t agree more..
Also the elephant in the room is when enquiring about your NRA65 early still the figures you’ll receive do not contain any DCBCS information of any sort unless you return the forms with clear intent of taking it.

[Duran]

Where can i check how much is in my cash balance fund from April 2018 to April 2022. Other than waiting for annual statement?

[heapsy]

Where can i check how much is in my cash balance fund from April 2018 to April 2022. Other than waiting for annual statement?

On the RMPP statement page 2. Currently mine is worth £12,108. Section C 37 hours.

[heapsy]

hi has anyone a rough idea how much we have built up in this cash balance fund based on a delivery persons wage over the last 4 years

There's no definite answer to that because everyone's will be individual to them to some degree and based on their basic hours, the section they're in and pensionable allowances, etc.

Last years statement will tell you what you had after 3 years, which can be increased by the recently announced annual increment of 4.6% and then you've got 2021/22 contributions to add on.

My full time, section C amount as of 31st March 2022 should be roughly £16,770.

That's high, are you on nights?

[Duran]

Just got off the phone with pensions. Mine is over £24,000 to end March 2022. They did confirm you can take a small percentage of it with NRA60 .Without taking NRA65. Depends if you take max lump sum from NRA60. Might work out better to take highest monthly pension and boost tax free lump sum from cash balance.

Also said new pension scheme wont start this year.

[heapsy]

Interesting, are you section B or C?

[Duran]

Interesting, are you section B or C?

Section B 38 Years in. 56yrs Knackered.lol.

[Hyrrokkin]

Just got off the phone with pensions. Mine is over £24,000 to end March 2022. They did confirm you can take a small percentage of it with NRA60 .Without taking NRA65. Depends if you take max lump sum from NRA60. Might work out better to take highest monthly pension and boost tax free lump sum from cash balance.

Also said new pension scheme wont start this year.

Is that figure right ? Well done if it is