Pensions

[MBT]

I joined Royal mail 20 years ago i just missed out on the lump sum payment when you reached 60 , i now am in a differant Pension Scheme. The reason when i inquired was that i joined the " Firm" after 1987 , Ive got a very decent offer when i retire . But the Question that needs answering is , How Come Crozier can get a Handsome pension package lump sum and all the Trimmings ? Didnt he join Royal Mail WELL imean WELL after 1987 . So if its good enough for us to have one Scheme and one for that Idiot . well its should be Adressed at CWU level. :cfo

[RobertT]

I joined Royal mail 20 years ago i just missed out on the lump sum payment when you reached 60 , i now am in a differant Pension Scheme. The reason when i inquired was that i joined the " Firm" after 1987 , Ive got a very decent offer when i retire.

Employees who started work with RM after April 1987 are in a different scheme to those that started before that date.
Pre '87 is worked out as 80ths of pensionable pay plus a lump sum of (I think) half pay. While post '87 is 60ths and no lump sum,although you can now trade in some of your pension for a lump sum if you wish.

But the Question that needs answering is , How Come Crozier can get a Handsome pension package lump sum and all the Trimmings ? Didnt he join Royal Mail WELL imean WELL after 1987 . So if its good enough for us to have one Scheme and one for that Idiot . well its should be Adressed at CWU level. :cfo

Happens in all businesses. The bosses pay into their own/different scheme and they usually decide how much goes in aswell. His pension is probably incentive based,so if he gets a bonus on his wages then he will get a wedge put in his pension too.

[stodgy88]

i think you got the lump sum wrong i joined in 85 and was offered £16000 lump sum last year at age 50 although my wages were £14,500 for that year-cheers (30 hour contract)

[RobertT]

You're right,I got it totally wrong. Section A/B lump sum is worked out in 2 parts:-

For Reckonable service before 1st April 2008 the lump sum is 3 times the pension earned for this period of service.

For Reckonable service after 1st April 2008 the lump sum is 3 the pension block/s earned for this period.

If you're taking your pension or lump sum before normal retirement age then your benefits will be reduced for early payment.

More info on Section A/B here :- ftp://ftp.royalmail.com/Downloads/publi ... PlanAB.pdf" onclick="window.open(this.href);return false;

And Section C here :- ftp://ftp.royalmail.com/Downloads/publi ... _PlanC.pdf" onclick="window.open(this.href);return false;