Royal Mail members: Watch out for important pensions info next week

[TrueBlueTerrier]

https://www.cwu.org/news/royal-mail-mem ... next-week/

From Monday morning, pensions consultation packs will start landing on Royal Mail employees’ doormats, as the final statutory step towards the establishment of the groundbreaking new scheme…

Since the Pension Schemes Act 2021 received Royal Assent back in February, the CWU and the company have been working though plans to introduce the new Royal Mail Collective Pension Plan.

And the mailouts to members represent another significant milestone in this process, the statutory 60-day consultation – which is a legal requirement before new pension schemes can be launched.

CWU deputy general secretary postal Terry Pullinger told CWU News: “This is a very positive development that means we are one step nearer delivering on our key policy of better pensions for all, which will mean that every single Royal Mail employee will be able to look forward to a decent and dignified retirement – and also have confidence that they belong to a safe and robust pension scheme.

“It’s been a long road and it was several years ago now, back in 2015/16, when we began talking about collective defined contribution (CDC) pensions. So, it’s good to see this vision getting closer to becoming a reality for all. Our members do a superb job every day – and a decent wage in retirement is what they thoroughly deserve.”

CWU assistant secretary Andy Furey, who has departmental responsibility for pensions within the union’s postal department, explains: “Following the consultation, assuming a positive response, the Collective Plan will be launched next year.

“Members who’ve been with Royal Mail for more than one year would stop building up benefits in the Royal Mail Pension Plan (RMPP) and the Royal Mail Defined Contribution Plan (RMDCP) and start building them up in the Collective Plan instead.

“And benefits they have already built up in RMPP or RMDCP will be there for them when they retire.”

The formal consultation launches on Tuesday 21st September and closes on Sunday 21st November. Consultation packs will start to land on our members’ doormats from Monday onwards.

For further information, please see LTB 369/21
Members can also access more details on the Royal Mail website here

[RobertT]

I got mine this morning, but is exactly the same as the info on the My Royal Mail Site: https://www.myroyalmail.com/collective-plan

[reedy]

So looking at it it looks AVCs will continue but into the collective plan

[RobertT]

There's been no detail yet, but I suspect a scheme similar to Flexiplan will be available, but specifically attached to the new collective benefits. Plus the Lump Sum Booster.

[yubin282]

Got the information pack today, what about those don't wanna work until age 67 or later.

[RobertT]

Got the information pack today, what about those don't wanna work until age 67 or later.

I suspect that applies to most people.

The first thing to realise is that what RM pension you've accrued so far hasn't changed, you can still take those benefits exactly as you can now.

But it will probably be a case of:

Like it or lump it; or
Make do with less; or
Save more of your own money to give yourself a chance of going earlier; or maybe
Spend the last few years working part time instead(not necessarily for RM), alongside the pension you've already got.

Obviously it will all depend on circumstances to one degree or another, which will vary from person to person.

[mark.cup]

Just looking at this and you know it's rubbish when they base it on figures that don't apply to a full timer who lives outside London which is the bulk of Royal Mail staff....

My pensionable pay going off this week's wage slip is just under 21k yet the illustrations are based around 12.5k,25k and 36.5k pensionable they love hiding the truth this way!

Now before anyone says it yes the employee contributions are generous in today's world but it's nothing like what we signed up for 2 3rds of your finishing salary at 60

Now we are on scheme number 4 with what will be for most an impossible age to continue in a delivery office

[RobertT]

Sounds like you're currently in section C?

If so, the LED won't be factored into your pensionable pay figures when the RMCPP starts. Meaning the £25k figure isn't quite as far off the mark as you think.

However your weekly pension contributions will see an increase!

[postie2007]

Hi everyone,
Does the delivery supplement count towards overall pensionable pay.

TIA

[vmaxv4]

Hi everyone,
Does the delivery supplement count towards overall pensionable pay.

TIA

It’s an old one but I think it’s still current info

[NWpostie]

But it will probably be a case of:

Like it or lump it; or
Make do with less; or
Save more of your own money to give yourself a chance of going earlier; or maybe
Spend the last few years working part time instead(not necessarily for RM), alongside the pension you've already got.

Obviously it will all depend on circumstances to one degree or another, which will vary from person to person.

Guess in my particular situation I'll probably end up saving up as I don't know how my AVC is going to work in the new scheme, currently I've been putting in £100 a week into my Flexiplan to to try to maximise my lump sum as much as I can in addition to my Bonus plan, I would assume this will stop once the new CDC comes into play, I dont want to be saving toward a new lump sum at 67 when I'm planning to retire at 60 anyway which is a good 6 years off.

[RobertT]

Guess in my particular situation I'll probably end up saving up as I don't know how my AVC is going to work in the new scheme, currently I've been putting in £100 a week into my Flexiplan to to try to maximise my lump sum as much as I can in addition to my Bonus plan, I would assume this will stop once the new CDC comes into play, I dont want to be saving toward a new lump sum at 67 when I'm planning to retire at 60 anyway which is a good 6 years off.

Flexiplan and Bonusplan will stop, but the money you've already saved can still be used to fund the tax free cash when taking your NRA60/65 pensions.

We don't know what the new AVC plan will look like, but my guess is it'll be similar to Flexiplan.

In your situation and without knowing any details, it might be an idea to look into paying into the new AVC, taking advantage of the tax breaks, and then transfer out to a DC scheme for drawdown. Assuming that is possible – it is with the current AVC's.

[yellowbelly]

Hi everyone,
Does the delivery supplement count towards overall pensionable pay.

TIA

It’s an old one but I think it’s still current info

Will OT above 37/38hrs now be pensionable? The following statements from the documentation don't specifically
mention OT above 37/38hrs being pensionable.

Pensionable Pay is your Basic Pay plus any allowances and bonuses that count towards your pension.

For example, in the Collective Plan there’s no cap on Pensionable Pay and no lower-earnings deduction.

[yellowbelly]

Hi everyone,
Does the delivery supplement count towards overall pensionable pay.

TIA

It’s an old one but I think it’s still current info

For those of us who have been only in RMDCP will OT above 37/38hrs now be pensionable?
The following statements from the documentation don't specifically mention OT above 37/38hrs being pensionable.

Pensionable Pay is your Basic Pay plus any allowances and bonuses that count towards your pension.

For example, in the Collective Plan there’s no cap on Pensionable Pay and no lower-earnings deduction.

[RobertT]

OT above full time hours has never been pensionable as far as I know and there's nothing to suggest it will be.

You pay in 6% of Pensionable Pay

Pensionable Pay is your Basic Pay plus any allowances and bonuses that count towards your pension. 6% is the same percentage as people pay into RMPP. It’s also the same as the highest standard saving rate in RMDCP, which is the rate most members choose to save at.