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2017 Benefit Illustration

Royal Mail pension news and discussion.Please note the advise given in this forum is unofficial, please use the links we have for a more detailed response or see an independent financial adviser.
FAB
Posts: 234
Joined: 06 May 2017, 22:57
Gender: Male

2017 Benefit Illustration

Post by FAB »

See in that recent Your News letter from the RMPP that they say they will no longer be showing the estimated benefits at 60 or 65. I can understand them not showing the 65 part. But surely even with the closure the 60 part will largely go unchanged. Apart from being locked into the 2017/18 wage for the Final Salary part.
RobertT
EX ROYAL MAIL
Posts: 6645
Joined: 09 Sep 2007, 14:26
Gender: Male

2017 Benefit Illustration

Post by RobertT »

The DC proposal booklet said that Section B members would continue to have the final salary element of their pension linked to pay. While for Section C members it would be increased with inflation.
And as discussions are still ongoing and there is currently nothing 100% decided, they probably have to be careful how much info they include.

Personally I’ve never understood why the statements include the NRA60 pension and the total pension, but leave it to you to work out the accrued NRA65 pension to date yourself. OK it’s simple to do, but surely it wouldn’t be too hard to include another box on the statement saying your NRA65 pension is worth £x today?

Going forward I would hope the annual statements will be easier to understand, with the scheme being closed to future accruals.
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Lefantum
Posts: 29
Joined: 07 Jun 2007, 12:15

2017 Benefit Illustration

Post by Lefantum »

Very Confusing. I was led to believe our NRA60 was linked to final salary when we decide to take it. Now i see Roberts post. Saying Fixed at 2017/18 Final salary year. Looking forward into the future and Royal Mails intention to take away all Pensionable allowances. I guess having our final salary pensionable pay fixed at 2017/18 pensionable pay is probably the best option. If you work nights and have legacy or ex PHG pensionable payments.