A question -Pension supplements - Section C - making sure you get them and lump sums -Timing

[stephen500]

For Robert T, please.
A question about the supplement (for others, I don't get them)
In order to get the supplement and the lump sum associated with each individual supplement, you have to leave the business.
Now there are different procedures for taking your pension, whilst in RM employ and if you have left.
So if you decide to leave and take your pension, how...
Do you tell the pension schemes that you are leaving and you wish to take your supplements and associated lump sums and how do they include them in your "final quote" if you haven't actually left yet, but plan too on payment of your pension, it's supplements and all the lump sums? Ie (25% tax free, traded for 25% of their pension).
If you leave first before taking your pension, you have to contact RMPP and RMSPS as seperate schemes, whereas if you are still in employment with RM, they contact RMPP.
I am thinking about timing and how they go about it and to make sure, they retain their supplements and associated lump sums.
Thanks.

[RobertT]

To be honest, I think you're asking the wrong person. You need someone who's been through the process, as I haven't. but your ideal person will have left RM and presumably won't be a regular on this forum?

But I would have thought you would have to tell the RMPP and RMSPS to ensure they know you're leaving.

I don't see why the final quote would be a major issue, as they would just factor the supplement in. The RMPP closed to future accrual in 2018, so we're not building up any more pension.
So it should be fairly straight forward, but then again this is RM pensions we're talking about.

I suppose there's also the scenario, that you tell them you're leaving, but don't.........

[stephen500]

To be honest, I think you're asking the wrong person. You need someone who's been through the process, as I haven't. but your ideal person will have left RM and presumably won't be a regular on this forum?

But I would have thought you would have to tell the RMPP and RMSPS to ensure they know you're leaving.

I don't see why the final quote would be a major issue, as they would just factor the supplement in. The RMPP closed to future accrual in 2018, so we're not building up any more pension.
So it should be fairly straight forward, but then again this is RM pensions we're talking about.

I suppose there's also the scenario, that you tell them you're leaving, but don't.........

I would have thought if you didn't leave, they would seek to recover the lump sums associated with the pension supplements you could no longer take.
Thanks.

[freespeech]

To be honest, I think you're asking the wrong person. You need someone who's been through the process, as I haven't. but your ideal person will have left RM and presumably won't be a regular on this forum?

But I would have thought you would have to tell the RMPP and RMSPS to ensure they know you're leaving.

I don't see why the final quote would be a major issue, as they would just factor the supplement in. The RMPP closed to future accrual in 2018, so we're not building up any more pension.
So it should be fairly straight forward, but then again this is RM pensions we're talking about.

I suppose there's also the scenario, that you tell them you're leaving, but don't.........

I would have thought if you didn't leave, they would seek to recover the lump sums associated with the pension supplements you could no longer take.
Thanks.

I've not been through the process but I have had the annual statements and a pension estimate within a week of each other (although they include payments to a year later). The odd thing is the estimates include a supplement for NRA60 and NRA65 in both RMPP and RMSPS but in my annual statement there is no supplement for NRA60 from RMPP. The supplements for NRA60 and NRA65 in the estimates are also unchanged regardless if max pension or max LS is chosen.

[stephen500]

To be honest, I think you're asking the wrong person. You need someone who's been through the process, as I haven't. but your ideal person will have left RM and presumably won't be a regular on this forum?

But I would have thought you would have to tell the RMPP and RMSPS to ensure they know you're leaving.

I don't see why the final quote would be a major issue, as they would just factor the supplement in. The RMPP closed to future accrual in 2018, so we're not building up any more pension.
So it should be fairly straight forward, but then again this is RM pensions we're talking about.

I suppose there's also the scenario, that you tell them you're leaving, but don't.........

I would have thought if you didn't leave, they would seek to recover the lump sums associated with the pension supplements you could no longer take.
Thanks.

I've not been through the process but I have had the annual statements and a pension estimate within a week of each other (although they include payments to a year later). The odd thing is the estimates include a supplement for NRA60 and NRA65 in both RMPP and RMSPS but in my annual statement there is no supplement for NRA60 from RMPP. The supplements for NRA60 and NRA65 in the estimates are also unchanged regardless if max pension or max LS is chosen.

So if a member chooses to give up 25% of their pension for a lump sum of say 25%, are you saying the pension supplement does not reduce by 25%.
So a member gets the gain of more lump sum ie supplement x 20 (25% of that) and no reduction in supplement? How would that work?

[freespeech]

To be honest, I think you're asking the wrong person. You need someone who's been through the process, as I haven't. but your ideal person will have left RM and presumably won't be a regular on this forum?

But I would have thought you would have to tell the RMPP and RMSPS to ensure they know you're leaving.

I don't see why the final quote would be a major issue, as they would just factor the supplement in. The RMPP closed to future accrual in 2018, so we're not building up any more pension.
So it should be fairly straight forward, but then again this is RM pensions we're talking about.

I suppose there's also the scenario, that you tell them you're leaving, but don't.........

I would have thought if you didn't leave, they would seek to recover the lump sums associated with the pension supplements you could no longer take.
Thanks.

I've not been through the process but I have had the annual statements and a pension estimate within a week of each other (although they include payments to a year later). The odd thing is the estimates include a supplement for NRA60 and NRA65 in both RMPP and RMSPS but in my annual statement there is no supplement for NRA60 from RMPP. The supplements for NRA60 and NRA65 in the estimates are also unchanged regardless if max pension or max LS is chosen.

So if a member chooses to give up 25% of their pension for a lump sum of say 25%, are you saying the pension supplement does not reduce by 25%.
So a member gets the gain of more lump sum ie supplement x 20 (25% of that) and no reduction in supplement? How would that work?

I don't know the answer for everyone but IN MY CASE the estimate I have received has exactly the same supplement amounts regardless of whether max pension or max lump sum is taken.

[heavy load]

Hi Stephen 500,
I am in the same boat.Have just phoned pension helpline to ask and have been told you have to leave the business before applying for pension to ensure you receive supplements(Scares me a bit)
Also told that one phone call to RMPP would suffice (I’m not confident)and they would still contact RMSPS.

[antcpfc]

Sorry to hijack the thread but which phone number do I ring to get the benefits I would receive if I take my pension but continue working?
Thanks.

[RobertT]

Sorry to hijack the thread but which phone number do I ring to get the benefits I would receive if I take my pension but continue working?
Thanks.

Assuming you're in the RMPP, the contact details are on the website: https://www.royalmailpensionplan.co.uk/" onclick="window.open(this.href);return false;
If you're in the RMDCP, then see the plan guide: https://adviser.scottishwidows.co.uk/as ... 0353sw.pdf" onclick="window.open(this.href);return false;

[stephen500]

Hi Stephen 500,
I am in the same boat.Have just phoned pension helpline to ask and have been told you have to leave the business before applying for pension to ensure you receive supplements(Scares me a bit)
Also told that one phone call to RMPP would suffice (I’m not confident)and they would still contact RMSPS.

A bit unclear with what you have said?
Do you mean you have to physically leave the Business (to get the supplement) before you apply for your pension, or you just need to inform them via a phone call, that you are going to leave as soon as you have your pension?
Asking for those who have a supplement projected.

[stephen500]

Robert T.
Could I ask a follow up question about the supplements for section C members.
I know you have told me that the supplements are paid if the member leaves the business.
I have a question regarding available lump sums for section C members.
1) Does the member include supplements in totalling up his/her pension pot.
2) Can the member take 25% of that pot, that INCLUDES the supplement as a tax free amount (up to 25%)
In otherwords does the member use the SUPPLEMENT, pension and pension increases x 20 to find his/her pot and up to his/her max 25% lump sum.
I have been led to believe on another thread, that the supplement does not decrease, if the member takes the max lump sum.
But does that mean that the supplement cannot be used for lump sum purposes?
Ie for lump sum purposes only the pension and pension increases (not the supplement) x 20 can be used to total up the pension pot to find the available 25% tax free amount.
I hope this question is clear!
Thanks.

[tractorboy2]

Robert T.
Could I ask a follow up question about the supplements for section C members.
I know you have told me that the supplements are paid if the member leaves the business.
I have a question regarding available lump sums for section C members.
1) Does the member include supplements in totalling up his/her pension pot.
2) Can the member take 25% of that pot, that INCLUDES the supplement as a tax free amount (up to 25%)
In otherwords does the member use the SUPPLEMENT, pension and pension increases x 20 to find his/her pot and up to his/her max 25% lump sum.
I have been led to believe on another thread, that the supplement does not decrease, if the member takes the max lump sum.
But does that mean that the supplement cannot be used for lump sum purposes?
Ie for lump sum purposes only the pension and pension increases (not the supplement) x 20 can be used to total up the pension pot to find the available 25% tax free amount.
I hope this question is clear!
Thanks.

You've probably made it clearer than I did on a different thread ( same question you ask )

[Hawkey99]

I took my NRA 60 pension and the pension supplement was not shown anywhere on my estimate and was not included my lump sum calculations.

I was included further down on the estimate showing me how much it was.

Hope this helps...