Deferred pensions and IHR

[eeezeeetiger1973]

If I was to take IHR from RM would I be able to be paid my deferred pensions? I have two deferred pensions one purely with RM and the other a mix of RM/Capita. Also I am currently in the 5 percent lump sum scheme and was wondering if I was to take IHR would RM enhance my lump sum pension as they used to do?

[RobertT]

If I was to take IHR from RM would I be able to be paid my deferred pensions? I have two deferred pensions one purely with RM and the other a mix of RM/Capita.

As long as you're aged 55+, you can take your pensions. But a 5% per year reduction will apply if taken before NRA.

It's possible you may be able to take it unreduced, but that will depend on the reasons for your IHR and the discretion of the trustees.

Also I am currently in the 5 percent lump sum scheme and was wondering if I was to take IHR would RM enhance my lump sum pension as they used to do?

I'm not sure what you mean by 'the 5% lump sum scheme'.

Is it the DBCBS?
If so, you pay in 6% of pensionable pay and RM pay in 13.6%.
If you're in section A, B or C, that is usually used to fund the tax free cash with predominantly NRA65 benefits.
If you're in section F, that can be taken as a lump sum with the first 25% being tax free, or else transferred out to another pension such as a SIPP.

Or are you in the RMDCP?
If so, there are a few contribution levels, one of which is 5% from the employee.
Normal DC pension rules apply to that: https://www.moneyhelper.org.uk/en/pensi ... on-schemes

As far as I'm aware, the enhancement of defined benefit pensions(RMSPS/RMPP) on IHR ended in 2018 with the 4 Pillars agreement. For reference, that is here: http://www.cwu.org/wp-content/uploads/2 ... ballot.pdf

[eeezeeetiger1973]

Thanks for the reply Robert. I believe I am in the DBCBS as I pay in 6% rather than the 5% I posted originally. I am some way off 55 so was hoping to go before then and have my deferred pensions paid as well as my current pension at whatever they are at the time. If I take IHR I would take the type where I was unable to work again so would rely on my pensions paying out without the standard 5% reduction for every year they are taken early. I am hopeful but unsure if the pension trustees allow this but did read a case about a former employee called Mr Britten who had a similar problem with his deferred pensions & won his case to allow him to receive the deferred pension.

[heapsy]

Thanks for the reply Robert. I believe I am in the DBCBS as I pay in 6% rather than the 5% I posted originally. I am some way off 55 so was hoping to go before then and have my deferred pensions paid as well as my current pension at whatever they are at the time. If I take IHR I would take the type where I was unable to work again so would rely on my pensions paying out without the standard 5% reduction for every year they are taken early. I am hopeful but unsure if the pension trustees allow this but did read a case about a former employee called Mr Britten who had a similar problem with his deferred pensions & won his case to allow him to receive the deferred pension.

The details of your IHR are not by choice. They are determined by the medical condition. If for example, you have arthritis, you will be deemed to be capable of working again and therefore will get a lower payout. If however, you had had a stroke or got a terminal illness, that would be different. The decision isn't yours to make.

[RobertT]

Thanks for the reply Robert. I believe I am in the DBCBS as I pay in 6% rather than the 5% I posted originally. I am some way off 55 so was hoping to go before then and have my deferred pensions paid as well as my current pension at whatever they are at the time. If I take IHR I would take the type where I was unable to work again so would rely on my pensions paying out without the standard 5% reduction for every year they are taken early. I am hopeful but unsure if the pension trustees allow this but did read a case about a former employee called Mr Britten who had a similar problem with his deferred pensions & won his case to allow him to receive the deferred pension.

If you're not sure which pension you're currently in, just look at your wage slip!

There are currently 2 forms of IHR via RM:

1. A lump sum of 34 weeks pay + a max of 12 weeks PILON. That is the most common form and is paid to those deemed unable to work for RM again. It also formed part of the companies recent cost cutting plans.

2. A 3 year payment plan, an example of which is detailed here: viewtopic.php?f=15&t=109152&p=1040121&h ... m#p1040121

As far as I'm aware, the only time you may be able to take your pension unreduced and before the legal minimum age(currently 55), is if you have a serious life threatening illness with only a short life expectancy.

As heapsy says, you don't get to choose which form of IHR you're given, it's based on your particular health issues. Although it is possible to appeal.

For anyone who's interested, the Britten case aswell as others relating to RM which have been taken to the Pensions Ombudsman, can be found here: https://www.pensions-ombudsman.org.uk/d ... order=DESC

[chuckychucks]

A few guys in my office went on IHR and got paid the 34+12 weeks, they appealed it and managed to to get the UNUM option which included the 3 year payment with lump sum at the end and their pension with no reductions.

Each of the 3 people who successfully appealed had different medical conditions, I know one of them just had back issues yet still managed to successfully appeal so I guess it might come down to what your doctor and consultant puts in their reports for supporting evidence.