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Pension supplements
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mags999
- Posts: 372
- Joined: 25 Jun 2016, 11:05
- Gender: Male
Re: Pension supplements
So if you are in section b you don't get this supplement is that correct
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RobertT
- EX ROYAL MAIL
- Posts: 6644
- Joined: 09 Sep 2007, 14:26
- Gender: Male
Re: Pension supplements
The rules of sections B and C are different. The accrual rates, the level of pensionable pay and the fact section B get a lump sum as standard, are the main differences.
Section C members get the supplement with their pension, until SPA and as long as they've left RM employment.
Section B do not get the pension supplement, but B is still regarded as the better section overall.
Links to all RM pension related websites are here
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fly-catchers
- EX ROYAL MAIL
- Posts: 573
- Joined: 05 Oct 2008, 16:38
- Gender: Male
Re: Pension supplements
The one exception where you get a bit of supplement paid as soon as you get the pension but are still working at RM. Is if you transferred an earlier DB pension from another employer to RM, when they still allowed that. So I have had that since I reached 60. And the rest was added when I finally left RM 3 years later!
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renrag40
- Posts: 423
- Joined: 05 Jun 2019, 00:35
- Gender: Male
Re: Pension supplements
Active members in Section B also pay in 20% more in pension contributions each week than active members in Section C.
It then follows on that the employer contributions are 20% higher as well.
This disparity can be seen most starkly in the cash balance totals after 5.5 years.
A FT OPG working lates who is in Section B would have £110 per week going into their cash balance pot.
Someone working the same shift in Section C would have £88 per week going into their cash balance pot.
The CDC scheme is highly unlikely to start before next April so the cash balance will have been going for 6 years by then.
The advantage that people in Section C will have is that they can use the Cash Balance to generate the maximum tax free lump sum for years 2012-2018 thereby reducing the amount of tax paid when the cash balance is crystallised whereas people in Section B will only be able to offset the difference between their standard tax free lump sum and the maximum tax free lump sum. Plus of course the difference of the accrual rates ..... Section B at 1/80th and Section C at 1/60th means that people in Section C will have the same year pension if not slightly higher than people in Section B from years 2012-2018 even though they paid in 20% less in contributions.
It then follows on that the employer contributions are 20% higher as well.
This disparity can be seen most starkly in the cash balance totals after 5.5 years.
A FT OPG working lates who is in Section B would have £110 per week going into their cash balance pot.
Someone working the same shift in Section C would have £88 per week going into their cash balance pot.
The CDC scheme is highly unlikely to start before next April so the cash balance will have been going for 6 years by then.
The advantage that people in Section C will have is that they can use the Cash Balance to generate the maximum tax free lump sum for years 2012-2018 thereby reducing the amount of tax paid when the cash balance is crystallised whereas people in Section B will only be able to offset the difference between their standard tax free lump sum and the maximum tax free lump sum. Plus of course the difference of the accrual rates ..... Section B at 1/80th and Section C at 1/60th means that people in Section C will have the same year pension if not slightly higher than people in Section B from years 2012-2018 even though they paid in 20% less in contributions.