https://www.myroyalmail.com/news/2016/0 ... ion-change" onclick="window.open(this.href);return false;
From today, active members of the Royal Mail Pension Plan (RMPP) will receive a letter about a Government change to pensions.
On 6 April 2016, the Government is introducing a new, single tier State Pension.
At the moment, members of the RMPP pay less in National Insurance contributions (NICs) because they don’t earn the Additional State Pension. This is called contracting-out.
The current State Pension is made up of two parts: the basic State Pension and the Additional State Pension. RMPP members are contracted-out of the Additional State Pension. This is because the benefits they earn through the RMPP are expected to be higher than those they would otherwise have earned in the Additional State Pension.
In return for not building up Additional State Pension, the Government allows RMPP members and Royal Mail to pay National Insurance contributions (NICs) at a lower rate.
What does this mean for me?
With the new single tier State Pension, contracting-out will end. As a result, active RMPP members will need to pay an extra 1.4% NICs on relevant earnings from 6 April. Royal Mail will have to pay an extra 3.4% NICs on relevant earnings. These extra NICs go towards the new State Pension.
If you are taking part in Pension Salary Exchange (PSE) this should reduce some of the impact of the increase in NICs that you and Royal Mail will have to pay. If you opted-out of PSE when it was introduced in summer 2015, you can opt back in.
Please call HR Services on 0845 60 60 603 (Monday to Friday, 8.30am to 5pm, excluding bank holidays) or email advicecentrePAY@royalmail.com to ask for an opt-in form.
More details
For more information, read your letter and visit http://www.gov.uk/contracted-out" onclick="window.open(this.href);return false;
This change does not affect members of the Royal Mail Defined Contribution Plan as they are already paying the higher level of NICs.
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Government pension change:RMPP members will be affected by the end of contracting out
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Government pension change:RMPP members will be affected by the end of contracting out
I Wrote-During Covid-Which is still relevant now
It's good to get these types of threads, the ridiculous my manager said bollox, so we can reassure ourselves that while the world is falling apart, Royal Mail managers are still being the low-life C***S they have always been.
My BFF Clash
The daily grind of having to argue your case with an intellectual pigmy of a line manager is physically and emotionally draining.
It's good to get these types of threads, the ridiculous my manager said bollox, so we can reassure ourselves that while the world is falling apart, Royal Mail managers are still being the low-life C***S they have always been.
My BFF Clash
The daily grind of having to argue your case with an intellectual pigmy of a line manager is physically and emotionally draining.