Pensionable pay rmcpp

[eggraidonmojo]

Could anyone reading this thread have a look in top right and see how much their pensionable pay rate is, and correspondingly how many hours their comtract is.

I'm on a 37 hour contract, for some reason my pension contributions pay is 0.00. Used to be 500-odd.

Anyone else got this?

My “Pensions Contrib. Pay” in top right corner this week says £6.82 ! It always used to be my basic pay amount plus the odd small amount of o/time occasionally, so usually £409.56 (I’m on a 30 hour contract). Why on earth does it say £6.82 this week?!

The small pensionable pay figure probably relates to overtime for last week and I don't think we will see pension contrib pay figures in future because they are no longer de-linked from actual pay. Your new pensionable amount will be basic hours if full time plus any pensionable allowances or if part time any overtime up to full time equivalent

I have a spread sheet for my wages and had guessed what my pensionable rate would be and found my guess to be correct.
Any delivery posties that receive the two delivery supplement payments each week will include the higher of the two as pensionable pay + their basic hours.

I tried to find a definitive list of pensionable allowances but gave up in the end.

I t also doesn't matter where the funds are invested because you do not get back what is paid in each year. the actual amount is fixed at 1/80th or (3/80th lump sum) of your pensionable pay per year subject to increases or reductions as per the plan details. The only exceptions are the Booster and AVC.

I emailed the Scottish Widows address I found on the app to see if there's any problem with the pension contrib. pay thing.

Probably you're correct, I just don't want them turning round and sayng "oh no we weren't making any contributions" or some such.

Hopefully things will settle down and we'll get some info on AVCs etc in the post soon...

Scottish Widows is for AVC's ( and most likely lump some booster) only.
The question of pensionable pay is to do with the main plan, administered by a mysterious group of trustees.

I ended up emailing hr. They got back to me and said that it's a problem with the payslips but the company are still making contributions as usual.

[posted]

received my SW RMDCP Transfer Out form today.
looks straightforward.
Provides value from les than a week ago.
Minimal details required from myself.

A few options to chose from
Sell All (and close account by default)
Sell All and leave account open

Sell part of it , giving details of what and how much to sell.

Provide basic details of where it should be transferred to.

I then send form to new provider, they complete rest of form and send back to SW

[Dexydog]

I've been looking into this just recently.
An IFA told me I had to get approval to transfer out
Rang SW and they said I can take 2 sums out in any tax year, but would have to claim any tax back if I was under the 12570 tax free allowance.
There's so much misinformation knocking around it's ridiculous.

[TopperGas]

I've been looking into this just recently.
An IFA told me I had to get approval to transfer out
Rang SW and they said I can take 2 sums out in any tax year, but would have to claim any tax back if I was under the 12570 tax free allowance.
There's so much misinformation knocking around it's ridiculous.

Assuming you are still working then the £12,570 tax free allowance will be eaten up by your earnings? Transferring money over to a new pension provider is clearly different from taking money out of your pension and putting it in a savings account &/or spending it.

[Dexydog]

I've been looking into this just recently.
An IFA told me I had to get approval to transfer out
Rang SW and they said I can take 2 sums out in any tax year, but would have to claim any tax back if I was under the 12570 tax free allowance.
There's so much misinformation knocking around it's ridiculous.

Assuming you are still working then the £12,570 tax free allowance will be eaten up by your earnings? Transferring money over to a new pension provider is clearly different from taking money out of your pension and putting it in a savings account &/or spending it.

I'm retiring early in March and looking at my options.

[posted]

I've been looking into this just recently.
An IFA told me I had to get approval to transfer out
Rang SW and they said I can take 2 sums out in any tax year, but would have to claim any tax back if I was under the 12570 tax free allowance.
There's so much misinformation knocking around it's ridiculous.

Assuming you are still working then the £12,570 tax free allowance will be eaten up by your earnings? Transferring money over to a new pension provider is clearly different from taking money out of your pension and putting it in a savings account &/or spending it.

I'm retiring early in March and looking at my options.

so will you be withdrawing/accessing your pension or transferring it?
If it's the former, try and do it after April 5th so your PA resets
If it's the latter then PA is irrelevant.

In all cases, probably better waiting for 2 weeks before making any concrete decisions.. don't know what Chancellor has in store

[Dexydog]

I've been trying to find out what I can and can't do with certain pots
Drawdown is not available as a function.
I'm going to make partial withdrawals of the SW RMDCP from next tax year up to my personal allowance, until it runs out.
They told me that's fine but tax will be taken off at source and I'll have to talk to HMRC about getting the tax back each year.
Not sure if the rules have changed now that the scheme has closed, but when I asked last year I was told I would have to transfer and get an IFA to approve it if over 30k.
Maybe the IFA I spoke to recently didn't know of a recent change, or they were wrong, or SW are wrong now and were correct last year- I'm not going to know for certain until I come to start taking it next year.
All a bit of a mess and quite stressful.

[RobertT]

I've been trying to find out what I can and can't do with certain pots
Drawdown is not available as a function.
I'm going to make partial withdrawals of the SW RMDCP from next tax year up to my personal allowance, until it runs out.

I'm doing that with my personal pension, some of which I transferred over from my RM Bonusplan AVC(I'm in section C).

Since doing so, the balance has dropped by a lot less than I've withdrawn and was expecting, mainly due to the investments performing better than I thought they would.
So you might find it lasts longer then you think.

They told me that's fine but tax will be taken off at source and I'll have to talk to HMRC about getting the tax back each year.

I was expecting to do that, but my provider has so far always paid it gross without the tax taken off. They seemed to know what my tax code was automatically, although it could also be because they was a gap of a few months between me leaving RM and starting drawdown, giving HMRC time to assess my situation?

Not sure if the rules have changed now that the scheme has closed, but when I asked last year I was told I would have to transfer and get an IFA to approve it if over 30k.
Maybe the IFA I spoke to recently didn't know of a recent change, or they were wrong, or SW are wrong now and were correct last year- I'm not going to know for certain until I come to start taking it next year.
All a bit of a mess and quite stressful.

Only DB pension schemes normally require IFA approval when being transferred and only if they're worth more than £30k.
The only exception is usually if your DC scheme has a guaranteed annuity rate(GAR), which can be a lot higher than you'd get in normal circumstances and therefore quite valuable.
GAR's tend to apply to older DC schemes from the 80's or 90's and doesn't apply to the RMDCP.

RM have a few different pensions, so maybe your IFA didn't realise the RMDCP is DC?

https://www.moneyhelper.org.uk/en/pensi ... on-pension