Would the supplement be enough to leave ?

[Wullie10]

Interesting to see a lot of postmen will be reaching the 60 year mark soon and will get about £1,500 a year if they leave Royal Mail. Will that be enough to persuade people to quit ? It's not a fortune by any means but added to a wage elsewhere for a job that's say five or four days a week with no stress could be the decider for me. I'd hate the feeling of missing out whilst continuing in a job that's clearly going to get a lot worse over the next few years.

[RobertT]

The amount of pension supplement section C members get will depend on their length of service, as it's worked out as 1/60th of the Lower Earnings Deduction for each year of scheme membership. Bearing in mind the RMPP closed to future accrual in 2018.

Someone joining on the first possible date for section C, 1st April 1987, will have 31 years of pension aswell as supplement.
But someone joining on the last possible date, 31st March 2008, will only have 10 years.

Anyone considering leaving would have to factor in all of their pension provision. But taking their RM pension(& any others) and then getting a part time job to make up their money, makes perfect sense to me.

[heapsy]

For what it's worth. I intend to use my AVCs to part fund the gap between NRA60 and 67. This is in excess of £5k a year. The age I am due to receive my state pension and the age at which the new pension is due to pay out. (if I join it). I'm lucky in that I've invested on the stock markets and two other pensions and have money coming to me when mum passes. I know, this isn't the case with everyone. So I will trigger the supplement. It's somewhere between £1,200 and £1,300 for me. The job is getting harder and the mood may well change when the new deal and ways of working finally come in. I may or may not work again, not sure yet, but I wont be killing myself. Tbh I'm finding it a bit daunting considering starting in a new job. Better the devil you know and all that. But the way the job is going, and the way people are being treated tells me that 60 will be old enough.

[Wullie10]

Anyone fed up in the 50 year old range or younger should seriously think about topping up their pension or making alternatives. If only I added a small amount more into a private pension I started years ago I could have really packed in work altogether at 60. As it is I shall keep working but not at RM. I think yhe biggest problems with pensions in general is the constant changing of the goal posts by governments. It puts people off without doubt.

[Wullie10]

Thanks for the info Robert T. Very interesting

[iceman888]

Am i led to believe everyone entitled to this Pension supplement
I am asking for a mate who is retiring in a few weeks

[RobertT]

Am i led to believe everyone entitled to this Pension supplement
I am asking for a mate who is retiring in a few weeks

The pension supplement is part of the benefits of section C of the RMSPS/RMPP.

To be in section C, you'll have joined sometime between 1st April 1987 and 31st March 2008.

[iceman888]

Thanks Robert for your reply my mate joined in 1989 so the xtra pension supplement he will receive and savings will definitely help and after 34 years he can now put his feet up and enjoy retirement

[wdo1256]

The amount of pension supplement section C members get will depend on their length of service, as it's worked out as 1/60th of the Lower Earnings Deduction for each year of scheme membership. Bearing in mind the RMPP closed to future accrual in 2018.

Someone joining on the first possible date for section C, 1st April 1987, will have 31 years of pension aswell as supplement.
But someone joining on the last possible date, 31st March 2008, will only have 10 years.

Anyone considering leaving would have to factor in all of their pension provision. But taking their RM pension(& any others) and then getting a part time job to make up their money, makes perfect sense to me.

Hi Robert
Thanks for all your advice on the pension part of RMC it's so helpful to people.

I was under the impression that the pension supplement was only paid if you retired and didn't get another job. It acted as an extra payment until you reach State pension age.

[RobertT]

Hi Robert
Thanks for all your advice on the pension part of RMC it's so helpful to people.

I was under the impression that the pension supplement was only paid if you retired and didn't get another job. It acted as an extra payment until you reach State pension age.

The supplement is paid as long as you've left RM.
The RMPP website(https://www.royalmailpensionplan.co.uk/ ... -answered/) says the following:

If you joined the Plan on or after 1 April 1987, you’ll get an extra amount of pension each year. This is called the Pension Supplement and you will receive it if you take your Age60 or Age65 benefits before you reach your State Pension age. It is only paid if you are not employed by Royal Mail Group and it will stop when you reach your State Pension age.

While the RMSPS website(https://www.royalmailsps.co.uk/faqs) says this:

The pension supplement is payable to Section C members (those who joined between 1 April 1987 and 1 April 2008). It is paid if you retire before State Pension age and not in Royal Mail employment or if you retire early from Royal Mail, but before your State Pension age.

[realitybites]

So August 2008 rules me out which is a shame. Didn't even know this existed, wish I didn't now, so close.

[RobertT]

So August 2008 rules me out which is a shame. Didn't even know this existed, wish I didn't now, so close.

You'll presumably have originally joined the RMDCP via Scottish Widows(formerly Zurich), and you might have since chosen to join the DBCBS(section F) instead, sometime after April 2018?

Both are basically savings schemes with options, rather than actual pensions that specifically provide an income for life. Although that would be one option!

[realitybites]

Thanks, I know I should be more on top of this as in a few months I will be 60 but whatever the default options were I would have gone with. I never thought this day would arrive but here I am. I am seriously considering leaving very soon as it is all too much for me. I suppose they will contact me when needed?

[RobertT]

Thanks, I know I should be more on top of this as in a few months I will be 60 but whatever the default options were I would have gone with. I never thought this day would arrive but here I am. I am seriously considering leaving very soon as it is all too much for me. I suppose they will contact me when needed?

Personally I think you should take a little more interest if you're getting to the time you might be accessing your money. It'll give you a head start.

They won't necessarily contact you automatically, as they won't know when you want to access your cash!

There's a sticky with all the important pension websites, giving you lots of info info: viewtopic.php?f=27&t=22318&start=15

You'll need the RMDCP and the RMPP(section F) if you're also in that!

Plus, this will give you a good general idea of what you can do with your pot/s of cash: https://www.moneyhelper.org.uk/en/pensi ... on-schemes

[realitybites]

Thank you Robert, you are a fountain of information when it comes to pension related matters. I'll study yhose links you've provided to give me a better idea of what I should be doing. Hopefully it will get my arse into gear. Thanks again