Deferred pension?

[casp21]

If I leave Royal Mail through RV and defer my pension benefits, am i still a member of the Royal Mail Pension Scheme. Thanks

[casp21]

I mean leaving through VR.

[RobertT]

Yes, your pension will just go up with inflation each year until you take it.

[casp21]

Thanks again Robert for all your help. Still trying to sort out all the in's and out's of getting the VR sorted. Do you think that I would have to pay pension contributions on my VR as well as the tax and NI contributions (after the 30K obviously).

[RobertT]

Thanks again Robert for all your help. Still trying to sort out all the in's and out's of getting the VR sorted. Do you think that I would have to pay pension contributions on my VR as well as the tax and NI contributions (after the 30K obviously).

VR payments aren't pensionable.

[casp21]

Great, more money this side.

[N1-22postman]

Thanks again Robert for all your help. Still trying to sort out all the in's and out's of getting the VR sorted. Do you think that I would have to pay pension contributions on my VR as well as the tax and NI contributions (after the 30K obviously).

National Insurance contributions are not payable on any of your redundancy lump sum.
You will pay income tax on the amount over £30K. In my case HMRC took almost twice as much tax on the amount over £30K as they should have because of the way PAYE works and I will have to claim this overpaid tax back after the end of this 2014-2015 tax year.
I have now retired and receiving my NRA60 pension and because 2014-2015 will be my last year of having earned income I will be putting some of my redundancy money (the amount over £30K counts as earned income) into a personal pension this week and getting HMRC to add 20%. As I am over 55,under the new pension rules from 6th April 2015 I will be able to withdraw this money as and when I like.

[casp21]

Thanks for the reply. I am going to put a lump sum into my pension also as I am only 50 and don't need it for another ten years, so an IVA can built up, also I think it will save most of it being taxed at 40% after the first 30k that ins't taxed, saves the tax man getting his paws on it.

[RobertT]

National Insurance contributions are not payable on any of your redundancy lump sum.
You will pay income tax on the amount over £30K. In my case HMRC took almost twice as much tax on the amount over £30K as they should have because of the way PAYE works and I will have to claim this overpaid tax back after the end of this 2014-2015 tax year.
I have now retired and receiving my NRA60 pension and because 2014-2015 will be my last year of having earned income I will be putting some of my redundancy money (the amount over £30K counts as earned income) into a personal pension this week and getting HMRC to add 20%. As I am over 55,under the new pension rules from 6th April 2015 I will be able to withdraw this money as and when I like.

Entirely the best thing to do with your VR money, especially anything over the £30k. Although your RM pension and what you take out of your personal pension will count as earned income also, apart from any tax free element. So unless your total income is less than the personal tax allowance(£10,600 from April 2015) you will have to pay tax on anything over that amount.

[N1-22postman]

Thanks Robert - My NRA60 pension of £9500 will be my only income next tax year and I plan to withdraw £1100 tax free from my new personal pension next tax year to use up my personal tax allowance of £10600.

[arnold cheshire]

Thanks Robert - My NRA60 pension of £9500 will be my only income next tax year and I plan to withdraw £1100 tax free from my new personal pension next tax year to use up my personal tax allowance of £10600.

thats a good pension is that 9500 a year or 9500 lump sum ?

[N1-22postman]

Sorry for late reply - £9,500 pension a year.This is my NRA 60 part which I took 4 years ago when I was 60.I will take my NRA 65 part when I am 65.I was lucky to get VR and retire at 63 after 37 years in the job.I stopped paying into the pension at 62 because I wanted the maximum lump sum VR = 104 weeks pay and not (the 26 weeks and some extra pension) which I was originally offered.I was greatly helped by this forum which told me to come out of the pension scheme and request another VR offer.

[arnold cheshire]

Sorry for late reply - £9,500 pension a year.This is my NRA 60 part which I took 4 years ago when I was 60.I will take my NRA 65 part when I am 65.I was lucky to get VR and retire at 63 after 37 years in the job.I stopped paying into the pension at 62 because I wanted the maximum lump sum VR = 104 weeks pay and not (the 26 weeks and some extra pension) which I was originally offered.I was greatly helped by this forum which told me to come out of the pension scheme and request another VR offer.

nice pension £9500 a year lovely