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Pension buyout

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.
markballentine
Posts: 1
Joined: 04 Feb 2018, 15:10
Gender: Male

Pension buyout

Post by markballentine »

Does Royal Mail still offer to buyout your whole pension. I phoned Capita yesterday and they had never heard of it. I am C scheme.
RobertT
EX ROYAL MAIL
Posts: 6645
Joined: 09 Sep 2007, 14:26
Gender: Male

Pension buyout

Post by RobertT »

A buy out is when the pension scheme basically hands over your benefits to an insurance company, who then pays out an annuity on the same terms as you would have got had you stayed with the pension scheme.
It only usually takes place if the pension scheme is being wound up and usually applies to all members.

There is the possibility of getting a CETV and transferring that to a DC pension, but that is only allowed for your RMPP(post 2012) benefits. But unless you're getting a particularly high value(a multiple of x30+), is generally regarded as bad move.
There is info on the RMPP website about getting a CETV.

You can transfer your RMSPS(pre 2012) benefits to another DB scheme, but not to a DC scheme. Details on the RMSPS website.
Links to all RM pension related websites are here