Dc scheme contributions to CDC scheme

[rogersh]

I have only 5 years with the DC scheme. (Age 62)
If the CDC scheme is eventually introduced what options will be provided?

Can/Will the contributions be transferred into the CDC scheme?
Will the contributions be frozen until I decide to draw out by choices offered by Zurich?

Also, will the CDC scheme be frozen at age 67 (As proposed for cash balance scheme)? - I assume this means Royal Mail would not contribute into your pension should you wish to work beyond 67.

[RobertT]

I have only 5 years with the DC scheme. (Age 62)
If the CDC scheme is eventually introduced what options will be provided?

So far we only have the mediators report to go by, but what’s actually introduced may be different. So no questions can currently be answered with any degree of certainty.

Can/Will the contributions be transferred into the CDC scheme?

The mediators CDC scheme proposals would suggest it will be a DB scheme and so probably incompatible with transfers from the DC scheme.

Will the contributions be frozen until I decide to draw out by choices offered by Zurich?

What you’ve already saved via your Zurich DC scheme will remain where it is and will continue to be subject to variations dependent on which fund/s it’s invested in.

There is also the option to transfer out to a personal pension or SIPP, etc should you want to do that. Or as you're over 55, you could access those funds.

Also, will the CDC scheme be frozen at age 67 (As proposed for cash balance scheme)? - I assume this means Royal Mail would not contribute into your pension should you wish to work beyond 67.

The proposal for the Cash Balance scheme was actually an NRA of 65, while the mediators report suggests an NRA of 67 for the CDC scheme.

You can choose to work after NRA and still be a member of both the RMPP and the RMDCP and still get RM contributions now. Although there is currently a limit of 45 years service for the RMPP and possibly for the RMDCP too? The Cash Balance proposals were to remove that 45 year limit!

With 5 years in and ages 62, I see no reason why you wouldn’t be able to pay into whatever pension scheme RM provides after whatever the NRA turns out to be, and still get contributions off them.

[rogersh]

Robert, Thanks for your response.
Like you say until the new scheme is implemented it is all unclear at present.

I did establish that as long as I worked for them RM would continue to pay pension contributions, DC scheme, at 9% (I pay 6%) the last offer was that RM would increase to 10% - now that will change as I assume the new scheme mean a higher % rate for the employer (this was not agreed - but will probably now be settled now.)

Even with the employer paying a higher rate I do not expect a "wage in retirement" - As possibly only 5 more years - For me it's a savings pot.