Pension help

martyswan · Post by **martyswan** » 10 Nov 2019, 12:57

Hi turning 55 soon, I know I can take my 25% lump some. But what happens to the rest of my pension? Any help would be great
Thanks

Post by **RobertT** » 10 Nov 2019, 13:13

It depends which scheme you're in!

If you have NRA60 and NRA65 benefits(you joined RM and/or the pension scheme before 1/4/08), then if you take your lump sum then you have to take your pension aswell. Both pension and lump sum will be reduced by around 5% per year before NRA.

If you're in the RM defined contribution plan(joined RM after 1/4/08) you can take 25% and leave the rest invested and continue to pay in.

martyswan · Post by **martyswan** » 10 Nov 2019, 13:33

Hi I joined in 98 and left this year so I'm in both.

Post by **RobertT** » 10 Nov 2019, 13:59

I'm not sure you read my post correctly!

If you joined in 1998 and left this year with no breaks in service during that time, I would expect you to have NRA60 and NRA65 benefits via the RM Pension Plan.

NRA60 relates to service before 1st April 2010, NRA65 is from 1st April 2010 to 31st March 2018.

You won't have benefits in the RMDCP aswell, unless you opted out of the RMPP, or had a break in RM service some time between 1st April 2008 and 31st March 2018, and then subsequently joined the RMDCP afterwards.

31st March 2008 was the cut off date for new entrants joining the RMPP, everyone after that date only had the option of the RMDCP.

martyswan · Post by **martyswan** » 10 Nov 2019, 14:40

My apologies mate, yes I'm in NRA 60 and 65, I just wondered if I take my 25% do you sort out the rest of the pension yourself or is it done automatically? Thanks

Post by **RobertT** » 10 Nov 2019, 15:08

If you want to take your pension anytime other than at NRA, you will have to contact the pensions dept/s for a quote. If you're leaving it until NRA, they should contact you 3-4 months beforehand.

Your quote will tell you how much lump sum and how much yearly pension you'll receive. But bear in mind the reductions for taking it at age 55 - your NRA60 will be reduced by 25% and your NRA65 by 50%.

To make things difficult, your RM pension benefits are split between those administered by Capita and RM's in house Pension Service Centre. So will have to contact both, as this LTB explains: https://www.royalmailchat.co.uk/communi ... 27&t=93020" onclick="window.open(this.href);return false;

For more info see the two pension websites:

https://www.royalmailpensionplan.co.uk/" onclick="window.open(this.href);return false;
https://www.royalmailsps.co.uk/" onclick="window.open(this.href);return false;

martyswan · Post by **martyswan** » 10 Nov 2019, 15:45

Thank you mate much appreciated

maisymoo04 · Post by **maisymoo04** » 17 Nov 2019, 07:29

Morning just a quick one on pensions , am I right thinking overtime contributes towards your pension when you come to retire ? Had a few people saying yes it does and other saying only the last few years of your retirement date ??? This cant be right can it

Post by **Steve_claret** » 19 Nov 2019, 09:21

maisymoo04 wrote:Morning just a quick one on pensions , am I right thinking overtime contributes towards your pension when you come to retire ? Had a few people saying yes it does and other saying only the last few years of your retirement date ??? This cant be right can it

Pension contributions are based on your basic salary so overtime is not pensionable and so does not increase your pension. Sounds like some of the people you are asking still think we are in a Final Salary scheme by mentioning "the last few years".

neilgg · Post by **neilgg** » 19 Nov 2019, 18:24

If you are part time and in the DC Scheme then any earnings in respect of overtime up to 38 hours a week are pensionable. So RM will make a contribution based on these earnings.

maisymoo04 · Post by **maisymoo04** » 22 Nov 2019, 19:31

Thanks ste and neil