Pension Confusion

[Mike G]

I'll admit from the off I have an embarrassing lack of understanding as to how our various pension schemes work so I'm just trying to get my head around the absolute basics of the subject.

I was an opg and enrolled in the RM pension from 2000 to 2021, since leaving the business in Jan 2021 I've received no further pension illustrations at all.

Im not even sure how many different RM pensions I'm in from 2000 to 2021! Two? Three?

When I was receiving illustrations I'd get 2 separate ones a year with 2 separate sets of figures on, seemingly from 2 entirely separate pension providers/administrators... one with squirrels on and another more formal looking one from RMSPS.

I've never understood what the 2 separate statements represented, let's say the squirrel one gave a figure of £3k a year and the RMSPS one a figure of £4k a year does that mean my total RM pension was set to be £7k a year?

I have just registered with the RMSPS Portal and looking at my personal 'retirement illustrator' or transfer value it now only shows one figure for what my predicted annual pension or transfer value will be.

Is this one figure that's illustrated on the RMSPS portal now my total combined pension entitlements from all contributions made to the different schemes between 2000 to 2021? Or is there still a separate administrator/provider for another entirely separate pension?

I'm amazed any average person can make any sense at all of our various pension schemes!

[RobertT]

I'll admit from the off I have an embarrassing lack of understanding as to how our various pension schemes work so I'm just trying to get my head around the absolute basics of the subject.

You're not the only one, RM pensions are stupidly complicated.

I was an opg and enrolled in the RM pension from 2000 to 2021, since leaving the business in Jan 2021 I've received no further pension illustrations at all.

You should be getting deferred member statements from both RMPP and RMSPS.
I suggest you get in touch with both.

Im not even sure how many different RM pensions I'm in from 2000 to 2021! Two? Three?

You'll be in section C and have around 10 years of NRA60 benefits(2000-2010), 8 years of NRA65(2010-2018) and 3 years of Cash Balance or DBCBS, which is a lump sum to be taken predominantly with NRA65 benefits.

When I was receiving illustrations I'd get 2 separate ones a year with 2 separate sets of figures on, seemingly from 2 entirely separate pension providers/administrators... one with squirrels on and another more formal looking one from RMSPS.

The one from RMSPS is for pension accrued up to 2012. The other one is from the RMPP which is from 2012 onwards.

I've never understood what the 2 separate statements represented, let's say the squirrel one gave a figure of £3k a year and the RMSPS one a figure of £4k a year does that mean my total RM pension was set to be £7k a year?

Each of those statements will have NRA60 and NRA65 figures on them, or they might be called Age60/Age65 – they're the same!
Simply add up your NRA60 figures to work out how much pension you'll get at 60, and the same for NRA65.

I have just registered with the RMSPS Portal and looking at my personal 'retirement illustrator' or transfer value it now only shows one figure for what my predicted annual pension or transfer value will be.

Is this one figure that's illustrated on the RMSPS portal now my total combined pension entitlements from all contributions made to the different schemes between 2000 to 2021? Or is there still a separate administrator/provider for another entirely separate pension?

Those figures relate to just your RMSPS benefits, so include all NRA60 and the first 2 years of NRA65.
Your RMPP figures relate to 2012 onwards.

I'm amazed any average person can make any sense at all of our various pension schemes!

There are people on this forum who've consulted IFA's about our pensions, and even they didn't understand them!

There's lots more details are on the schemes websites:

https://www.royalmailpensionplan.co.uk/
https://www.royalmailsps.co.uk/

[Mike G]

Thank you very much for the reply Robert T

I've seen many of your contributions on here and you really are an incredible help.

I still don't fully follow much of what you've said in your reply but will further digest it and look at the links you've provided.

So just to confirm, you're saying that any illustrated figure I'm seeing on the RMSPS portal is still only part of my pension entitlement and I have another entirely separate pension entitlement somewhere with RMPP? (I'm guessing RMPP were the statements with squirrels on?)

Honestly you really should get whatever qualifications are needed and set yourself up as a pension advisor specifically for RM pension members.
I'd gladly pay for your services and I'm sure there are many thousands of posties the same... as you say even regular IFA's don't understand the intricacies and complexities of all the numerous RM pensions!

[RobertT]

I would advise reading as much as you can about RM pensions, and keep reading until you understand them better. It might take a while, but I'm sure you'll get there!

The media library on the RMPP website has a few videos that might help, as well as the 'guide to benefits'.

Yes, you do have more pension on top of what's on the RMSPS website, and it's from the RMPP(the squirrels).

[BenacreNick]

Outstanding RobertT..