Pension Supplement Confusion

Kwackerman · Post by **Kwackerman** » 15 Mar 2019, 12:56

Hi Everyone,

I contacted the pensions helpline earlier to clarify a few things regarding taking my pension at 55 ( I am a deferred section C member who took VR and left the business in January 2012) and the answers I received are at odds with information I have received and have seen on this forum.

I asked the helpline employee what actual NRA 60 figure is used to deduct the 25% (50% for the NRA65) if I take it early and she told me the Pension Supplement, paid until I reach state pension age, which is paid only if you are not employed by Royal Mail is not paid out until I reach 60. It is not included in the calculations when you take the pension early BUT she went on to say that it will be paid when I reach 60 even if I take my pension early at 55.

Does this information sound correct ?

Anyone on here who has taken their pension early able to confirm this is correct?

Also, I asked her to confirm what the Pension Increase Amount is that is added to my statement every year. She confirmed this is the annual increase to my pension ie. the amount it increases in value due to RPI. I found this a bit surprising because my NRA 60 pension of approx 8.5K seems to be increasing in value by nearly 1k per year which is surely considerably more than any RPI annual increase?

Does this information also sound correct?

I welcome any information you can supply me.

Cheers

Andy

shergar7 · Post by **shergar7** » 16 Mar 2019, 11:48

hi, seems to be a lot of confusion about this, i took early retirement in january aged 57 , section c member, only took aged 60 benefits and left 65 deferred, i haven't received any supplement in first 2 months payment, on the estimate i recieved in december, it didn't show a supplement as part of the payment, yet on same letter it says i get a supplement of 40 pound a month if i left royal mail ! I'm sick of ringing helpline up and getting different responses off different people, the last person said i don't get it till im 60 , so sounds like you had the same person i had, i will ring again after next payment at end of month. if you hear anything different pleases respond , good luck

lordthornber · Post by **lordthornber** » 18 Mar 2019, 17:39

I've just re read my actuarially reduced figures which I received last week.

The figures and options are simple to understand. I have made my choice based on THE FIGURES IN BLACK & WHITE.

When I receive my first payment at the end of May, why, apart from a few quid difference for not being a full month should it be any different?

I don't think Capita are going to be in the habit of offering applicants an option of say a £300 a month payment and then AFTERWARDS saying, 'ahh, hang on a minute you don't get the supplement until you are 60' are they?

If it is the case, then it makes a complete mockery and makes no sense of the options they offer us.

TheStrangler · Post by **TheStrangler** » 27 Sep 2019, 11:12

Id also like an answer to this as I was led to believe you get the supplement as soon as you leave Royal mail so theoretically from age of 55 upwards.
I assume that'd be reduced from if you took it for example a year before you got your state pension?

lordthornber · Post by **lordthornber** » 27 Sep 2019, 15:46

I can confirm that I received the amounts quoted on the document I received. I took mine at 55, the supplement is payable until you reach your state pension age. Absolutely 100% simple to follow figures on the document.

david3595 · Post by **david3595** » 27 Sep 2019, 16:57

I phoned Pension Centre today to ask if I took my NRA 60 at 55 and continued working would my Pension Supplement be paid in full at 60 ( Supplement figures quoted on last statement dated March 18 + RPI increase ) if I left the Business at 60 or is it reduced as I would have taken my NRA 60 earlier. Could not get a definitive answer, was told as long as I’m employed the Supplement will rise by RPI. To add confusion I was told the Pension Supplement is not paid until 60 even if I retired between 56 and 59

Pension C member.

Post by **RobertT** » 27 Sep 2019, 18:53

The plan guide states:

If your Normal Retiring Age in relation to benefits being taken is before your State Pension age, and you choose to take your Age60 pension or Age65 pension and leave the Company before State Pension age, you will also receive a pension supplement that is payable until you reach State Pension age.

lordthornber · Post by **lordthornber** » 28 Sep 2019, 14:17

I took my Section C benefits in May, aged 55. I was already retired. No reduction in Pension supplement and it ceases at State pension age, in my case 67. So, 12 years of payment. What happens if you're working I've no idea.

heapsy · Post by **heapsy** » 28 Sep 2019, 21:46

lordthornber wrote:I took my Section C benefits in May, aged 55. I was already retired. No reduction in Pension supplement and it ceases at State pension age, in my case 67. So, 12 years of payment. What happens if you're working I've no idea.

If you are still working then you don't get it. It only kicks in when you retire, and lasts until your state pension age. If you rejoin RM, then the supplement ceases.