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Ft to Pt pension suffer?

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.
reedy
Posts: 51
Joined: 09 Sep 2007, 19:41

Ft to Pt pension suffer?

Post by reedy »

Hi a friend of mine is 57 years old with 33 years service.He is currently ft but looking to go onto a pt 25 hr duty. Would this affect his pension much as id hate for the sake of 3 years him suffering a greatly reduced pension by going pt or will it hardly have any effect?
RobertT
EX ROYAL MAIL
Posts: 6645
Joined: 09 Sep 2007, 14:26
Gender: Male

Ft to Pt pension suffer?

Post by RobertT »

We don't yet know exactly how things will change from 1st April, but RM's original plans were for section B final salary pension to still be based on pay, but section C would go up by inflation. Both are currently based on pay!

So assuming that is still the case, then your mates final salary(up to 2008) section B pension would be reduced if he went part time.

But it would also depend on when he actually takes his pension, because that is worked out as either the best year in the last three, or the best 3 consecutive years in the last 10. See the plan guide for more info.
Links to all RM pension related websites are here