Underwhelming RMSPS Pension illustration.

[milly]

Wait until next year's Pension statement, it will be even worse.
We are are being robbed by the Parasitic classes, the Government Gilts our Pension buys are used to fund many Government workers Final Salary Pensions and Shirkers benefits.
I have had a few people on here trying to ridicule me, but it looks like the penny is finally beginning to drop.
As interest rates go higher the value of Government Gilts will continue to drop.

I wondered when you'd pop up. Lol.

Higher gilt yields have actually been good for DB schemes and bad for DC. If you chose not to believe that, then that's up to you.
https://www.pensions-expert.com/Special ... ns?ct=true

Rather than the statements, what you need to look out for is the annual report and accounts, as they will tell you the overall state of the RMPP.

If what you say is correct, and the scheme is dropping in value due to high yields, it'll likely be in deficit.
But I doubt that will be the case.

When Gilt yields were low the underlying Gilts increased in value, hence the reason that CETV values were so high.
As Gilt yields increase the value of the underlying Gilt goes down, therefore the Pension fund loses value.

[RobertT]

Wait until next year's Pension statement, it will be even worse.
We are are being robbed by the Parasitic classes, the Government Gilts our Pension buys are used to fund many Government workers Final Salary Pensions and Shirkers benefits.
I have had a few people on here trying to ridicule me, but it looks like the penny is finally beginning to drop.
As interest rates go higher the value of Government Gilts will continue to drop.

I wondered when you'd pop up. Lol.

Higher gilt yields have actually been good for DB schemes and bad for DC. If you chose not to believe that, then that's up to you.
https://www.pensions-expert.com/Special ... ns?ct=true

Rather than the statements, what you need to look out for is the annual report and accounts, as they will tell you the overall state of the RMPP.

If what you say is correct, and the scheme is dropping in value due to high yields, it'll likely be in deficit.
But I doubt that will be the case.

When Gilt yields were low the underlying Gilts increased in value, hence the reason that CETV values were so high.
As Gilt yields increase the value of the underlying Gilt goes down, therefore the Pension fund loses value.

Read the link I provided. You might learn something.

[milly]

Wait until next year's Pension statement, it will be even worse.
We are are being robbed by the Parasitic classes, the Government Gilts our Pension buys are used to fund many Government workers Final Salary Pensions and Shirkers benefits.
I have had a few people on here trying to ridicule me, but it looks like the penny is finally beginning to drop.
As interest rates go higher the value of Government Gilts will continue to drop.

I wondered when you'd pop up. Lol.

Higher gilt yields have actually been good for DB schemes and bad for DC. If you chose not to believe that, then that's up to you.
https://www.pensions-expert.com/Special ... ns?ct=true

Rather than the statements, what you need to look out for is the annual report and accounts, as they will tell you the overall state of the RMPP.

If what you say is correct, and the scheme is dropping in value due to high yields, it'll likely be in deficit.
But I doubt that will be the case.

When Gilt yields were low the underlying Gilts increased in value, hence the reason that CETV values were so high.
As Gilt yields increase the value of the underlying Gilt goes down, therefore the Pension fund loses value.

Read the link I provided. You might learn something.

So if Gilt yields are low we make money and if Gilt yields rise we make money?
We have a zero risk Pension, fantastic!

[renrag40]

I've received my RMSPS yearly statement for 2023 earlier this week. I'm in Section B and still an active member of the pension schemes.
Comparing the current value of annual pension with the 2021 statement shows an 18.117% increase over the 2 years. This % rise is for both NRA 60 and NRA 65 pensions.
Given that the maximum rise can only be 5% per year for active members then the maximum rise should be 10.25% over 2 years.
The actual rises were 4.9% in 2022 and 5% in 2023 which would be 10.145% over the 2 years.
I thought at first it might be something to do with the GMP equalisation changes...... but then I thought that can't be it because that effects pension accrual years up to 1997. So why would it effect NRA 65 benefits accrued in years 2010 to 2012?
Anybody got any ideas?

[Hyrrokkin]

Wait until next year's Pension statement, it will be even worse.
We are are being robbed by the Parasitic classes, the Government Gilts our Pension buys are used to fund many Government workers Final Salary Pensions and Shirkers benefits.
I have had a few people on here trying to ridicule me, but it looks like the penny is finally beginning to drop.
As interest rates go higher the value of Government Gilts will continue to drop.

Has the penny finally dropped ? - ok well thanks for telling us
Looking forward to more inspiring 'I told you first' pearls of wisdom from our resident 'I must have the final word' soothsayer Milly

[milly]

Wait until next year's Pension statement, it will be even worse.
We are are being robbed by the Parasitic classes, the Government Gilts our Pension buys are used to fund many Government workers Final Salary Pensions and Shirkers benefits.
I have had a few people on here trying to ridicule me, but it looks like the penny is finally beginning to drop.
As interest rates go higher the value of Government Gilts will continue to drop.

Has the penny finally dropped ? - ok well thanks for telling us
Looking forward to more inspiring 'I told you first' pearls of wisdom from our resident 'I must have the final word' soothsayer Milly

For some it's starting, but for the hard of thinking it will take longer if at all.
Keep trusting those experts on the idiot's lantern
The Worker's are funding the parasitic class through taxation and now through our Pensions.

[Jefferson Starfish]

I don't think many posties are really that bothered about the complexities of the gilts market, or whether the parasites are going to eat us all.

I just want to how our pensions work and how much I'm going to get when I retire and Robert has helped me a lot over the years.

All this constant doom and gloom from a certain person, just gets in the way and makes everything harder to understand.

[milly]

I don't think many posties are really that bothered about the complexities of the gilts market, or whether the parasites are going to eat us all.

I just want to how our pensions work and how much I'm going to get when I retire and Robert has helped me a lot over the years.

All this constant doom and gloom from a certain person, just gets in the way and makes everything harder to understand.

I'm afraid Posties will be bothered about the complexities of the Gilt market when our benefits are greatly reduced.
The Government is stealing the Working Man and Women's wealth at an alarming rate, and yet people are totally disinterested at the moment.

[guardianangel]

I never gave advice i said if i was starting out again i wouldn't bother with a personal pension,it was my opinion,the pensions were good if you stayed in the same job for 40 years but theses days the average person will have 12 jobs in their working lives so company pensions are not a great investment transferring these pensions would be investment suicide and freezing them makes little sense,so i stand by my opinion not advice as you put it ,please please read the situation before you go off on one.

With every pension, you'll get the benefit of tax relief and sometimes salary sacrifice, aswell as at least the legal minimum of a 3% contribution from your employer. Over the course of your working life, that can add up to a significant amount of money.

There's no such thing as freezing a pension! Once you've left an employer, DB schemes will increase with inflation and DC schemes will continue to follow the chosen investments.

Transferring a DB scheme to DC is generally regarded as a wrong decision, but DC to DC is perfectly normal. I don't know why anyone would consider it to be investment suicide, as you'll normally be able to transfer to broadly similar investments, if you want to!

I'd have to disagree ,i worked with someone who wanted to transfer his pension into the nhs and would lose a third,so he froze his pension and yes we all know it still increases over the years but frozen means you no longer pay in ,i've already drawn my final salary pension from my previous employer at 55 and put my tax free lump sum and my £220 after tax a month into a family members account with my savings from other investments ( not pensions) and my property into a trust fund which when i die will pay no inheritance tax for my kids ,I will keep working until im 67 albeit probably part time but will enjoy myself to the full knowing the government will not get their hands on my money.

[RobertT]

Frozen is more of an informal term, rather than a technical one.

DB to DB transfer values will be specific to the two schemes involved, rather than general across the board.
For example, if you had 10 years in your old scheme and that would only give you 8 years in the new, on the face of it, you'll be worse off. But if the new scheme had higher pensionable pay or a better accrual rate, that could even things out and sometimes provide better benefits.

So it's possible to get transfers that are both in your favour or not.

I don't think I'll ever agree with the idea of taking a DB pension early, because the maths will always tell you it's a bad choice. Unless there's specific health reasons to do so.
But ultimately it's a personal decision.

I'm not sure of the legalities of putting your savings into somebody else's account and whether that money is still yours or not. It certainly has the potential to get messy.

[Wullie10]

I've received my RMSPS yearly statement for 2023 earlier this week. I'm in Section B and still an active member of the pension schemes.
Comparing the current value of annual pension with the 2021 statement shows an 18.117% increase over the 2 years. This % rise is for both NRA 60 and NRA 65 pensions.
Given that the maximum rise can only be 5% per year for active members then the maximum rise should be 10.25% over 2 years.
The actual rises were 4.9% in 2022 and 5% in 2023 which would be 10.145% over the 2 years.
I thought at first it might be something to do with the GMP equalisation changes...... but then I thought that can't be it because that effects pension accrual years up to 1997. So why would it effect NRA 65 benefits accrued in years 2010 to 2012?
Anybody got any ideas?

Wasn't it only section C members who are capped at 5% not section B ?

[mjd24]

I don't think many posties are really that bothered about the complexities of the gilts market, or whether the parasites are going to eat us all.

I just want to how our pensions work and how much I'm going to get when I retire and Robert has helped me a lot over the years.

All this constant doom and gloom from a certain person, just gets in the way and makes everything harder to understand.

I'm afraid Posties will be bothered about the complexities of the Gilt market when our benefits are greatly reduced.
The Government is stealing the Working Man and Women's wealth at an alarming rate, and yet people are totally disinterested at the moment.

Can you explain in very simple terms how you think they are doing this?

[renrag40]

I've received my RMSPS yearly statement for 2023 earlier this week. I'm in Section B and still an active member of the pension schemes.
Comparing the current value of annual pension with the 2021 statement shows an 18.117% increase over the 2 years. This % rise is for both NRA 60 and NRA 65 pensions.
Given that the maximum rise can only be 5% per year for active members then the maximum rise should be 10.25% over 2 years.
The actual rises were 4.9% in 2022 and 5% in 2023 which would be 10.145% over the 2 years.
I thought at first it might be something to do with the GMP equalisation changes...... but then I thought that can't be it because that effects pension accrual years up to 1997. So why would it effect NRA 65 benefits accrued in years 2010 to 2012?
Anybody got any ideas?

Wasn't it only section C members who are capped at 5% not section B ?

No, if you are an active member of the Section B the yearly rise is based on RPI capped at 5%. If you are receiving your pension it is CPI uncapped. The yearly rise since last year has been 11.9% which still wouldn't be CPI as that was 10.3% last September, which is the monthly figure that is used to calculate the yearly rise.

[milly]

I don't think many posties are really that bothered about the complexities of the gilts market, or whether the parasites are going to eat us all.

I just want to how our pensions work and how much I'm going to get when I retire and Robert has helped me a lot over the years.

All this constant doom and gloom from a certain person, just gets in the way and makes everything harder to understand.

I'm afraid Posties will be bothered about the complexities of the Gilt market when our benefits are greatly reduced.
The Government is stealing the Working Man and Women's wealth at an alarming rate, and yet people are totally disinterested at the moment.

Can you explain in very simple terms how you think they are doing this?

The Government have no cash and have Billions of unfunded liabilities.
They don't raise enough money via taxation so therefore the have to borrow by selling Gilts.
Income Tax thresholds have been frozen until 2028 which tax a lot of money from the Workers, Climate Change nonsense is another way of raising taxes and the endless Wars that enrich the Corporations and Politicians.
This is all designed to extract wealth from the Workers to give to the wealthy insiders.

[RobertT]

Can you explain in very simple terms how you think they are doing this?

I bet you wish you'd never asked?

Meanwhile, the latest funding figures for UK DB pension schemes have been released, and as I suggested up thread, their joint funding position has improved as a result of higher gilt yields. With around 90% of schemes sharing a surplus of the best part of half a £Trillion.
https://www.pensionsage.com/pa/DB-pensi ... tember.php