RMDCP Benefits Statement Question

itinerant · Post by **itinerant** » 22 Aug 2018, 18:43

I have just received my first pensions statement (I joined RM last year and am currently on the 1% contribution rate but will be going to the 6% when I hit 12 months service in a few months (with RM then paying 10%).

There is a section on the statement which states "over the next 12 months you're due to get another £744.67 paid into your lifetime savings, £297.87 of that will come from the company, £446.80 of it from you but because you get tax relief saving of £89.36 only reduces your take home pay by £357.44"

What I am struggling to get my head around is how I would be paying in more than RM if we are both paying 1% in until 12 months service and RM is then paying a higher percentage than me after 12 months (ie RM are always paying the same or higher contribution). I am a part-timer on a 30 hour contract (not that this should make any difference to the question).

Anyone know why this may be before I give RM a call?

Post by **RobertT** » 22 Aug 2018, 19:15

It doesn't sound right at all to me and it's quite difficult to work out unless we know the exact time frame of changeover from the 1% rate to 6%/10%.

But if there's £744 in total going in, then I would expect RM's contribution to be more like £446 and yours to be £297(or around £203 after tax relief & PSE).

itinerant · Post by **itinerant** » 22 Aug 2018, 19:23

Thanks for your response RobertT. Yes I am sure it is incorrect.

I will hit my 12 months service on 15/11. As another section of the statement, which shows the current pot value, states "as at March 2018" I was not sure when the 12 month forecast period was based on (I just knew that the RM contribution should have been higher than mine whatever the future period!) and so I have not had a go at trying to reconcile the figures to the penny.

Post by **RobertT** » 22 Aug 2018, 19:33

The normal thing would be for any future projections to be from statement date. So the £744(assuming that's correct) will be total contributions from March 2018 to March 2019, or about 4 months at the higher rates.

itinerant · Post by **itinerant** » 22 Aug 2018, 19:47

Thanks.

I think the £744 figure looks low (even for the 4 months alone at the higher contribution rates). I will give RM a call tomorrow.

Post by **rogersh** » 23 Aug 2018, 16:34

My RMDCP statement says; Over the next 12 months, you're due to get another £1769.39 paid into your lifetime savings, £1105.87 of that will come from the company. £663.52 of it from you.

I pay 6%. 20 hours. Hope this might help as a comparison.

Post by **Navalron** » 23 Aug 2018, 19:20

That is a pitiful amount of money from RM. No wonder they want everyone part time. So if you stayed on those hours ,for say 30 years service you would only have got £34 per grand from this mob. I know they have no money ( ahem) but can pay the big shareholders mega money from your sweat and lapsing. Modernisation is just a byword for, we are starting you and your can't do a thing about it.pathetic.

JKSmudge · Post by **JKSmudge** » 23 Aug 2018, 22:13

Don't worry, in a few years time you will be making up for it due to the wonderful pension scheme we have been promised ( and 90% believed ).

Post by **rogersh** » 24 Aug 2018, 07:17

JKSmudge wrote:Don't worry, in a few years time you will be making up for it due to the wonderful pension scheme we have been promised ( and 90% believed ).

I know you are being ironic but I only have a few years anyway & by the time CDC materialises I don't think the contributions will give me a wage in retirement in any case.

itinerant · Post by **itinerant** » 27 Aug 2018, 04:10

RobertT thanks for your feedback - i have sent you a pm.