Royal Mail set to announce further change to pensions

[Glenno]

Cheers for the update Dingo, me thinks that the preverbial is about to hit the fan

[heapsy]

Recently had dealings with a financial adviser and asked him about the very subject. He told me that in his opinion both parties, ie we would also have to in in agreement for this to go ahead. Will be very interesting to see what happens.

[stephen500]

Yes it will . This is why it pensions was discussed at last weeks briefing . Royal Mail are nervous as there were meant to announce the consultation this week and has now been pushed back a couple of weeks Easter is a good time to bury bad news .

As some one who has worked for Royal Mail since the late 1970s. This really has me worried. So much so, that today 16/04/13, that I have sent a e mail to Dave Ward cc B Hayes, asking them to confirm or deny this information. As I have about seven years to go. The change might not hurt me too much, as I am well into my best three years of ten. I hope you are wrong. Most people are now just sick and tired of pensions. Who can trust them any more. I couldn't recommend joining one to my children. Just for once I hope you are wrong!

[baldrick]

As I have about seven years to go. The change might not hurt me too much, as I am well into my best three years of ten.

I might be wrong but I thiught that the pension you receive is not now based on the average pensionable pay of the best three in the last 10 years.
I think that it is now based on the the pensionable pay during the last 12 months service prior to retirement - not sure, but this might be the best 12 months in the last 3 years. Anyone know?

[Pinky 1]

The best 12 months in the last 3 years is also my understanding of it

[stephen500]

The best 12 months in the last 3 years is also my understanding of it

I spoke to Pensions who confirmed it is the best 3 years of the last ten.

[Pinky 1]

Pensionable salary – This is used to calculate the part of your pension benefits that relate to your service before 1 April 2008 and the lump sum benefit paid to your dependants if you die while still working for the Company. It is the total of your basic annual salary or wages (including, where appropriate, London Weighting) plus any pensionable allowance in whichever of the last three years of reckonable service gives you the highest amount. Pensionable salary is adjusted to the full-time equivalent during periods of part-time employment unless stated otherwise.

Where it would give you a higher amount, your average annual pensionable salary plus other pensionable payments over the best three consecutive tax years in the last ten years will be used. The best year in the last three years ends on either:
The last day of your reckonable service; or
A date which is 91 days (or up to eight multiples of 91 days) before the last day of your reckonable service.

http://www.royalmailpensionplan.co.uk" onclick="window.open(this.href);return false;

It's an individual thing stephen500, and that's where baldrick and myself were coming from. Sorry for any confusion.

[stephen500]

Just hanging on in the hope for EVR or my pension or death, which ever comes first

[fishtank]

http://www.royalmailpensionplan.co.uk/1 ... d-pensions" onclick="window.open(this.href);return false;

Final Pensionable Pay
This is used to calculate your pension benefits that relate to your service before 1 April 2008 and the lump sum benefit paid to your dependants if you die while still working for the Company. It is either:

your highest pensionable pay for any calculation year during the last 3 years of Reckonable Service, ending on your last day of Reckonable Service
or, if greater

the highest average of your pensionable pay in any 3 consecutive tax years in the last 10 years before you leave service, take your benefits or die.
Where final pensionable pay is determined using a calculation year other than that which ends on your last day of Reckonable Service, it will be increased to take account of the period between the end of the calculation year and your last day of Reckonable Service.

If you work part-time, the pensionable pay used to calculate your final pensionable pay for pension purposes (but not for the lump sum benefit paid to your dependants if you die while still working for the Company) will first be adjusted to its full-time equivalent.

Edit basically the same as Pinky's

[stephen500]

As any one explain why we have this 2008 and yet I read 2010 elsewhere??? in our pension illustration booklet

[RobertT]

As any one explain why we have this 2008 and yet I read 2010 elsewhere??? in our pension illustration booklet

The final salary pension ended in 2008 and was replaced by the career average version. But all pension earned up to April 2010 has still got a normal retirement age of 60.