Pension opt-in

[Walter sobchak]

How do I start paying into the pension scheme??

[RobertT]

You can currently join the RM Defined Contribution Plan!

They should automatically opt you in after 3 months of RM employment. Although I believe you can opt in at any time.

Full info is here: https://www.scottishwidows.co.uk/save/royalmaildcplan/

Opting in and contact info can be found in the plan guide via the above link.

[Walter sobchak]

You can currently join the RM Defined Contribution Plan!

They should automatically opt you in after 3 months of RM employment. Although I believe you can opt in at any time.

Full info is here: https://www.scottishwidows.co.uk/save/royalmaildcplan/

Opting in and contact info can be found in the plan guide via the above link.

I was paying into a pension scheme for 10 years then took a 1 year career break and after being back at work for 2 years I’ve only just noticed that I’m not paying into one?

What should it say on your payslip?

[RobertT]

Depending on which scheme you're actually in, it'll probably say either:

PSE ADJ RMDCP; or
PSE ADJ RMPP DBCBS C

You'll also presumably be getting annual statements from which ever scheme you're in?

[Walter sobchak]

Depending on which scheme you're actually in, it'll probably say either:

PSE ADJ RMDCP; or
PSE ADJ RMPP DBCBS C

You'll also presumably be getting annual statements from which ever scheme you're in?

Haha!!! Panic over.

I’m a moron. I have the PSE ADJ RMPP DBCBS C.

I was expecting to see it in the “deductions” column instead of the “payments” column.

I guess I should pay more attention to my payslips in future. Thanks anyway for your help and everyone else’s help.

[BenacreNick]

It used to be in the deductions column, then a loop-hole was found and it changed about 3 or 4 years ago.

[RobertT]

That 'loophole' is salary sacrifice, which RM call Pension Salary Exchange(PSE).

It's actually been around since around 2000 I think, although it wasn't introduced by RM until 2015.

The company uses it as a way to counteract the increase in NIC's for both employees and employers, with DB pension schemes that were contracted out of the state second pension. That increase happened in April 2016 when contracting out ended.

It basically means that RM are paying our pension contributions(inc AVC's) instead of us, and so our pay for National Insurance purposes is effectively lower. Meaning a saving for both them and us.

Personally I've never really understood why RM didn't introduce it earlier!

We only benefit from PSE if our hourly rate is above the minimum wage once pension contributions are factored in. As we're losing money by striking, we may well be losing the benefit of PSE aswell. Although that will depend on the individual to some degree.
If we're benefiting from it, pension contributions are in the left hand column. If we're not, they're in the right.

[BenacreNick]

Thanks for the clarification RobertT.

I didn't realise it was 7 years ago.

[NWpostie]

That 'loophole' is salary sacrifice, which RM call Pension Salary Exchange(PSE).

It's actually been around since around 2000 I think, although it wasn't introduced by RM until 2015.

The company uses it as a way to counteract the increase in NIC's for both employees and employers, with DB pension schemes that were contracted out of the state second pension. That increase happened in April 2016 when contracting out ended.

It basically means that RM are paying our pension contributions(inc AVC's) instead of us, and so our pay for National Insurance purposes is effectively lower. Meaning a saving for both them and us.

Personally I've never really understood why RM didn't introduce it earlier!

We only benefit from PSE if our hourly rate is above the minimum wage once pension contributions are factored in. As we're losing money by striking, we may well be losing the benefit of PSE aswell. Although that will depend on the individual to some degree.
If we're benefiting from it, pension contributions are in the left hand column. If we're not, they're in the right.

That's what happened to me as I was paying the max allowed and since I lost a days pay I dropped out of PSE, still the money is being invested in my flexiplan as my future is more important than the here and now.

[qwerty2]

Didn't know the pension was with Scottish widows

[RobertT]

Didn't know the pension was with Scottish widows

The RM Defined Contribution Plan is, which anyone who's joined the company since 1st April 2008 will be in.