Pension how many years

[charlton111]

Hi,how many years do you pay into royal mail pension scheme ,I'm coming up to 36 years ,I think it used to be 40 years but not sure ?

[RobertT]

Taken from the plan guide:

The maximum combined pension in respect of service up to 31 March 2018 is equal to that calculated using a maximum of 45 years’ pensionable service. If you completed more than 45 years’ pensionable service you would not have built up any further pension blocks but, provided you continue in pensionable service, all your pension blocks will continue to be revalued up to the last renewal date before you take your benefits or leave pensionable service.

From 1st April 2018, you've been building up a lump sum via the DBCBS, which doesn't count towards that 45 year limit. Anybody still employed who already had 45 years will have restarted their contributions into the DBCBS from that date, unless they chose to opt out.

As far as I know, there will be no limit to how many years you can be a member of the planned CDC scheme.

[westy23]

Morning all and RobertT
When I take my 65 pension at nra next year and if I decide to carry on working will
I still be contributing/building up my DBCBS fund?
As I get older everything seems more confusing regarding pensions.

[RobertT]

Morning all and RobertT

Morning!

When I take my 65 pension at nra next year and if I decide to carry on working will
I still be contributing/building up my DBCBS fund?

I believe the answer to that is no! This is taken from the Pension Review booklet we got earlier this year:

For current members of RMPP, DBCBS benefits cannot be taken separately to other RMPP benefits – DBCBS benefits have to be taken with Age 60 or Age 65 benefits (to link with RMPP and RMSPS benefits). Current RMPP members taking Age 60 benefits will be able to take part or all of their DBCBS benefits (depending on how much tax-free lump sum they can take at that point) with their Age 60 benefits and can then continue contributing towards further DBCBS benefits until Age 65 benefits are taken.

As I get older everything seems more confusing regarding pensions.

There was a time we were all in one final salary scheme, albeit with different sections(A, B & C). But with all the changes we've seen over the last 10-11 years, things have become a lot more complicated.

[rogersh]

I opted to stay in the DC scheme in which I had this assurance.
"I can confirm that as long as you work for Royal Mail you are eligible to pay into the plan."

I assumed when/if CDC scheme is implemented the DC scheme would no longer exist & I would automatically be enrolled in the new CDC scheme.
If so,will I still be able to pay into CDC if I remain with RM after NRA ? . Is age 67 the NRA for CDC ?

[RobertT]

I opted to stay in the DC scheme in which I had this assurance.
"I can confirm that as long as you work for Royal Mail you are eligible to pay into the plan."

That is true of the RMDCP!

I don't think there's anything stopping a Section A, B or C RMPP member continuing to pay into the DBCBS after 65 if they choose to. But as the DBCBS has to be taken with either/or NRA60 & NRA65 pensions and as there's no benefit from deferring after NRA, there would be no point.

Ex RMDCP members who are now paying into the DBCBS via section F of the RMPP, have an NRA of 65 for that. But as it's just a pot of money not attached to any other benefits, I see no reason why they couldn't continue to pay into it past 65 if they stay in RM employment.

I assumed when/if CDC scheme is implemented the DC scheme would no longer exist & I would automatically be enrolled in the new CDC scheme.

Going by the literature, that seems to be the case.

If so,will I still be able to pay into CDC if I remain with RM after NRA ?

Because of the nature of CDC, I would say yes. But as CDC currently doesn't exist in any form in the UK, we obviously don't know what the specifics are going to be.

Is age 67 the NRA for CDC ?

That is the plan.

[rogersh]

Many thanks Robert for the clarification of your response.