Pension supplements

[Gary55]

Would I be entitled to the pension supplements at any stage before state pension age if I retire or only if I go at 60 or 65 . C member. Thanks for any help ps if eligible and I retire at 63 for instance would I have to apply or would it be added automatically.cheers

[RobertT]

The section C supplement is payable when you take your pensions and leave RM. Age doesn't come into it.

If you've already left RM when you take your pension, it should be paid automatically.

If you're currently still employed by RM and planning on leaving and taking your pension at the same time. Then I would advise you tell the pensions people of your plans, to make sure they know you're leaving.

If you're still employed by RM and have taken your pension, you won't get the supplement until you leave. Again, it might be a good idea to tell them when you do leave.

In any scenario, the supplement should only be paid until you reach your state pension age.

[Gary55]

Excellent thank you

[Engy]

Do section B members get the supplement Robert?

[RobertT]

Do section B members get the supplement Robert?

In a word, no!

Sections A/B offer different pension benefits to section C.

The main differences are that Section C has the supplement and a higher accrual rate, while A/B has a standard lump sum and no Lower Earnings Deduction.

The 'member guide to benefits' on the RMPP website, will tell you more: https://www.royalmailpensionplan.co.uk/ ... a-library/

[NWpostie]

All things considered, do you think section C might be better off than those in section A/B ?

[RobertT]

All things considered, do you think section C might be better off than those in section A/B ?

If you had the theoretical situation of 2 people starting on the same day, with the same wages and allowances, etc, but one in Section B and one in section C. Then overall I believe section C members would accrue benefits at a slightly higher rate via the final salary and CARE schemes, and with a lower contribution rate(due to the LED).

The problem is the various changes over the years, in particular those in 2014, have devalued section C more than B!

In my opinion comparing the two might be a talking point but is ultimately pointless, as everyone is in the section/scheme they're in based on the date they joined, and there's nothing anybody can do about it.

However, the difference is far bigger for those you joined RM after 1st April 2008. Because they have never had access to any RM defined benefit pension and have only been able to build up a pot of cash via the RMDCP or latterly the Cash Balance scheme(after 5 years in the RMDCP).

DB is generally always better than DC!

[fly-catchers]

For a reason I cannot understand but everyone I knew who is in Section B have a far smaller CARE pension for the 2 years of NRA60. Not sure what happens when the NRA65 kicks in. As example my Care part is worth about £90 a month including the supplement for Section C. While a colleague who left a similar time to me and was at RM about 12 years longer is getting £8.45 a month on that part of his pension! And others with similar service and in Section B the same amount roughly. Even allowing for the supplement bit and the fact they took the full 25% tax free lump sum and I didn't still makes these part of the pensions quite a bit difference.

From a personal point of view I am glad I am in section C rather than B. You get Bonus plan which was an absolute bargain (which I am amazed at how few of my colleagues joined!). And RPI on pension increases unlike Section B's CPI. Though that of course is set to all change in the next few years.
From the end of September I start my journey to my NRA65 and will interested to see if it will be a smooth or bumpy road!

[RobertT]

For a reason I cannot understand but everyone I knew who is in Section B have a far smaller CARE pension for the 2 years of NRA60. Not sure what happens when the NRA65 kicks in. As example my Care part is worth about £90 a month including the supplement for Section C. While a colleague who left a similar time to me and was at RM about 12 years longer is getting £8.45 a month on that part of his pension! And others with similar service and in Section B the same amount roughly. Even allowing for the supplement bit and the fact they took the full 25% tax free lump sum and I didn't still makes these part of the pensions quite a bit difference.

Doesn't sound right to me either.

From a personal point of view I am glad I am in section C rather than B. You get Bonus plan which was an absolute bargain (which I am amazed at how few of my colleagues joined!). And RPI on pension increases unlike Section B's CPI. Though that of course is set to all change in the next few years.
From the end of September I start my journey to my NRA65 and will interested to see if it will be a smooth or bumpy road!

I agree totally with Bonusplan being a bargain. It was an absolute no brainer for section C members and was one of the best things I've ever done in my 30 odd years with RM.

The contributions were minimal, but add on the tax breaks, RM's share and the best part of 3 decades of investment growth and I've got a tidy sum.

My only regret was starting it in the mid 90's and not in the late 80's when I first joined the company.