Update on CDC launch

[RobertT]

https://www.myroyalmail.com/collective-plan

Update on the Collective Plan launch

We’ve hit two important milestones:

1. An independent board of Trustees has been appointed to run the Collective Plan. The Trustee board will be responsible for managing the plan and making decisions in the best interests of its members. The board is made up of representatives from Royal Mail and the unions, as well as independent professional pension Trustees.

2. The Trustees have submitted an authorisation application to The Pensions Regulator to enable us to launch the Collective Plan. The Pensions Regulator requires any new plan like ours to apply for authorisation and we cannot launch the plan until it is authorised. The Regulator has up to six months to consider the application, but we hope it won’t take that long.

Once the Collective Plan has been authorised, we will work with the Trustees to launch it in 2023. You don’t need to do anything right now. We’ll let you know when the Collective Plan has been authorised and write to you in plenty of time before it’s launched to give you details of the plan and your options.

In the meantime, you’ll continue to get information from any pension plan that you’re in now.


For more info on the collective pension plan, see the link at the top of the page.

[RobertT]

Anyone who wants more detail on who's on the trustee board, see here: https://suite.endole.co.uk/insight/comp ... e=overview

Info on what's involved in a company applying for approval for a CDC scheme is here: https://www.thepensionsregulator.gov.uk ... ntribution

[Gary55]

just surprised they've not already ditched it for the cheapest alternative

[heapsy]

just surprised they've not already ditched it for the cheapest alternative

They probably will once the take over is completed.

[posted]

https://www.myroyalmail.com/collective-plan

Update on the Collective Plan launch

We’ve hit two important milestones:

1. An independent board of Trustees has been appointed to run the Collective Plan. The Trustee board will be responsible for managing the plan and making decisions in the best interests of its members. The board is made up of representatives from Royal Mail and the unions, as well as independent professional pension Trustees.

2. The Trustees have submitted an authorisation application to The Pensions Regulator to enable us to launch the Collective Plan. The Pensions Regulator requires any new plan like ours to apply for authorisation and we cannot launch the plan until it is authorised. The Regulator has up to six months to consider the application, but we hope it won’t take that long.

Once the Collective Plan has been authorised, we will work with the Trustees to launch it in 2023. You don’t need to do anything right now. We’ll let you know when the Collective Plan has been authorised and write to you in plenty of time before it’s launched to give you details of the plan and your options.

In the meantime, you’ll continue to get information from any pension plan that you’re in now.


For more info on the collective pension plan, see the link at the top of the page.

When was this update from?
Surprised we’ve not heard anything directly. It might be rather boring detail to most people but in their own words they’re “important milestones”.
Reckon it’ll be implemented for 1st April?

I’m going to try and make a significant AVC to my DC scheme whilst it’s still open and signs of a recession is still looming.
Little faith in this CDC scheme even with its guarantees

[Dorset Plodder]

Reckon it’ll be implemented for 1st April?

I’m going to try and make a significant AVC to my DC scheme whilst it’s still open and signs of a recession is still looming.
Little faith in this CDC scheme even with its guarantees

Sounds like a sensible option What is the Maximum AVC you can pay in a finacial year?

[freespeech]

Reckon it’ll be implemented for 1st April?

I’m going to try and make a significant AVC to my DC scheme whilst it’s still open and signs of a recession is still looming.
Little faith in this CDC scheme even with its guarantees

Sounds like a sensible option What is the Maximum AVC you can pay in a finacial year?

Far more than most of us can afford....in the tens of thousands, but given it has to be through payroll (Section C) I suspect most people won't have the option available.

[NWpostie]

It's been mentioned somewhere, the max you can pay is £120 ish without dropping out of PSE, there may not be a lot of time left, make use of it while you can.

[RobertT]

When was this update from?
Surprised we’ve not heard anything directly. It might be rather boring detail to most people but in their own words they’re “important milestones”.
Reckon it’ll be implemented for 1st April?

I'm not too sure when it was updated to be honest. I look at that link occasionally when answering questions on here, and there it was!

The earliest possible date they could have applied was 1st August and the Pensions Regulator have said that they will take no more than 6 months to decide whether a CDC scheme meets all the criteria. So we can only guess when it might start. But they said they'll write to us about 3 months before implementation day.

There's nothing relevant about 1st April!

I’m going to try and make a significant AVC to my DC scheme whilst it’s still open and signs of a recession is still looming.
Little faith in this CDC scheme even with its guarantees

It's always a good idea to save more towards your retirement.

The only guaranteed element of the new scheme is the lump sum. The pension itself, can go up and down!

[RobertT]

Sounds like a sensible option What is the Maximum AVC you can pay in a finacial year?

Everyone can pay as much as they earn into pensions and get tax relief in a financial year. Up to a maximum of £40k.

You can put in more than you earn if you choose, but you won't get the tax relief, which is the main benefit of a pension.

You can pay into as many pensions as you wish. So in theory you could pay AVC's to stay within PSE and benefit from the savings on NIC's, and then also contribute to a personal pension up to your yearly wage.
Bearing in mind that employer contributions also count towards the annual limits.

[Dorset Plodder]

Thanks for the replies.

I do pay into a Private Pension Scheme as well, and it has been pointed out that if I'd paid MORE into an RM scheme I might have been better off (because I've obviously got no Employer's Contributions being paid in).

However for some strange reason I've never really trusted Royal Mail .... I wonder why?

And I never like to put all my eggs in one basket!

[posted]

Reckon it’ll be implemented for 1st April?

I’m going to try and make a significant AVC to my DC scheme whilst it’s still open and signs of a recession is still looming.
Little faith in this CDC scheme even with its guarantees

Sounds like a sensible option What is the Maximum AVC you can pay in a finacial year?

Whatever it is I don’t think I could afford the max. I think once we know a date I can start planning for it in advance and ask for a lump sum to be deducted each week for say 4 weeks

[posted]

It's always a good idea to save more towards your retirement.

The only guaranteed element of the new scheme is the lump sum. The pension itself, can go up and down!

Indeed. There’s even less (zero) guarantee with DC but over last ~12years it’s performed well and I wouldn’t want to be touching it for another 20-30 years

[posted]

Bearing in mind that employer contributions also count towards the annual limits.

Ah, I never knew this. Always thought it was your personal contribution limit.
Make sense actually. Otherwise those employed by their own company would just make limitless contributions.

P.S 1st April tends to be a nice easy date to remember/prepare for any major financial changes.

[RobertT]

Reckon it’ll be implemented for 1st April?

I’m going to try and make a significant AVC to my DC scheme whilst it’s still open and signs of a recession is still looming.
Little faith in this CDC scheme even with its guarantees

Sounds like a sensible option What is the Maximum AVC you can pay in a finacial year?

Whatever it is I don’t think I could afford the max. I think once we know a date I can start planning for it in advance and ask for a lump sum to be deducted each week for say 4 weeks

It would be more tax efficient to pay a smaller amount extra each week, for longer and stay within PSE, rather than what you suggest.