AVC Flexi plan and Bonus plan

[yorkmover123]

Due to take my NRA 60 pension in March 2023 on my 60th birthday. Received a letter for NRA benefits-Option 1 and NRA 60 benefits- option 2 . For estimate of my benefits when am 60 .

My bonus plan and Flexible plan not mentioned in the letter .
Will I receive separate communications from Capita in relation to my bonus plan and flexi plan or will I need to contact Royal Mail pension provider.

[RobertT]

AVC's and the DBCBS aren't included in your figures until you say you want to take your benefits. They'll then get back to you with updated figures.

It's something many of us on this forum have never understood!

If you do have any problems with AVC's, the RMPP in Sheffield is your point of call.

[yorkmover123]

Thanks for the info

[Hyrrokkin]

AVC's and the DBCBS aren't included in your figures until you say you want to take your benefits. They'll then get back to you with updated figures.

It's something many of us on this forum have never understood!

If you do have any problems with AVC's, the RMPP in Sheffield is your point of call.

Has anybody asked them why they do this ?
Or why they cannot give estimated figures (and make that clear they are estimated) so we can have general ballpark figures

I guess it is an admin issue between RMPP & Capita - down to time/cost...another reason why there should be only one Pension administrator

[freespeech]

It's a joke.....my AVC's and DBCBS total is £57k and to exclude that from the initial forecasts is unhelpful to say the least.

[RobertT]

They don't seem to be set up for dealing with AVC's at all, despite the fact that collectively we the members have a total of £141 million invested in them.

The DBCBS works in a fairly similar way to AVC's, and that total pot is worth about £1.5 Billion.
After nearly 5 years of existence, it now forms an integral part of our RMPP benefits!!!!

It is possible to come up with ballpark figures ourselves with a bit of simple maths. But anyone who's applied for their pension will know, there are a number of different options to choose from and we really should have official figures, even if they're estimated, from the word go!!!

The current situation of having two administrators is nothing more than a money saving exercise by the Cabinet Office! With Capita doing the RMSPS admin for £1.2 Million per year less than previously under the PSC.
It does absolutely nothing for us, the members. In fact it makes our pensions much more difficult to understand!

I think the RMSPS contract is up for renewal in 2024.

[Hyrrokkin]

They don't seem to be set up for dealing with AVC's at all, despite the fact that collectively we the members have a total of £141 million invested in them.

The DBCBS works in a fairly similar way to AVC's, and that total pot is worth about £1.5 Billion.
After nearly 5 years of existence, it now forms an integral part of our RMPP benefits!!!!

It is possible to come up with ballpark figures ourselves with a bit of simple maths. But anyone who's applied for their pension will know, there are a number of different options to choose from and we really should have official figures, even if they're estimated, from the word go!!!

The current situation of having two administrators is nothing more than a money saving exercise by the Cabinet Office! With Capita doing the RMSPS admin for £1.2 Million per year less than previously under the PSC.
It does absolutely nothing for us, the members. In fact it makes our pensions much more difficult to understand!

I think the RMSPS contract is up for renewal in 2024.

It is simply not good enough - people have a hard enough time understanding our pensions as it is
How many people have come on here to get advice from you RobertT because they they cannot trust/understand or even get the correct information from RM/Capita (you can bet there are many more that haven't)
The sums invested in AVC's/DBCBS are large and growing quickly - we pension members deserve better all round

[Wullie10]

I started to buy added years from 1989 as I expected a final salary pension..God knows how that will work out.

[mrcurve]

RMSPS should include your AVC's

But I wonder if some are excluded, due to the age of retirement selected.

check on the Money4life website

log in and go to the "My retirement savings" box, it might be 60,65,75 etc. of course this may be irrelevant but its easy to change if it is.

[RobertT]

I started to buy added years from 1989 as I expected a final salary pension..God knows how that will work out.

As far as I'm aware, the buying of added years via Addplan stopped in 2018.

[RobertT]

RMSPS should include your AVC's

But I wonder if some are excluded, due to the age of retirement selected.

check on the Money4life website

log in and go to the "My retirement savings" box, it might be 60,65,75 etc. of course this may be irrelevant but its easy to change if it is.

The age you select should have no bearing on whether your AVCs are included in your RM pension quotes.

The money4life website doesn't recognise that your savings are AVCs and can be taken as tax free cash along with NRA65/65 benefits.

[mrcurve]

I started to buy added years from 1989 as I expected a final salary pension..God knows how that will work out.

add plan is split between the 2 pensions, so its worth checking that its been included.

[mrcurve]

RMSPS should include your AVC's

But I wonder if some are excluded, due to the age of retirement selected.

check on the Money4life website

log in and go to the "My retirement savings" box, it might be 60,65,75 etc. of course this may be irrelevant but its easy to change if it is.

The age you select should have no bearing on whether your AVCs are included in your RM pension quotes.

The money4life website doesn't recognise that your savings are AVCs and can be taken as tax free cash along with NRA65/65 benefits.

when we compete the flexiplan application we select the retirement age we want, and this should be the one showing on the money4life website, It maybe relevent or not for the quotes.
I am fairly certain when you are due to take the 60, 65 pensions ,it includes the avc's, but if you are looking into taking one earlier it may be the reason its not on the estimates.

[RobertT]

Going by what yorkmover123 said in her first post, AVC's and the DBCBS aren't included in the initial quotes!
She is taking her pension at 60!

The annual paper statement we get from SW, does factor in our chosen retirement date and provides examples of how much our pots will be worth at that age and theoretically how much pension we'd get if we bought an annuity(income for life).
It's known as a Statutory Money Purchase Illustration(SMPI).

As most people use AVC's to fund the tax free lump sum alongside NRA60/65 benefits, the annuity info on the annual statements isn't really relevant.

[mrcurve]

Its capita (RMSPS) paperwork that will include the avc's, they are slower in sending out the forms, it may be because you need figures from RMPP.


when you do get the RMSPS you will need to complete part E

these are the questions they want answered

PERCENTAGE OF STANDARD LTA THAT THE TOTAL BENEFIT TAKEN REPRESENTS( TO 2 DIGITAL PLACES)

and TOTAL AMOUNT OF BENEFIT CRYSTALLISED AT THE DATE BENEFIT TAKE

they dont pass this info to each other and RMPP do not send it to you either, so you have to call them before you can complete Capita paperwork.

neither side tell you that you need this which is not helpful.