pension virgin

[anthonyok]

Hi !
Been with royal mail since july 2007, currently no pension,
If i apply now will i have to have the latest pension plan or would i be entitled to an early more beneficial one ?Can anyone point me in the right direction,b.t.w. i am 35 hr week contract.
thanks in advance
Ant

[TrueBlueTerrier]

Hi !
Been with royal mail since july 2007, currently no pension,
If i apply now will i have to have the latest pension plan or would i be entitled to an early more beneficial one ?Can anyone point me in the right direction,b.t.w. i am 35 hr week contract.
thanks in advance
Ant

The royal mail pension plan has its own web page - http://www.royalmailpensionplan.co.uk/" onclick="window.open(this.href);return false; - might be worth reading through that but my feeling is that you would only qualify for the plan starting Apr 2008 as AFAIR no pension was available from Apr 07 to Apr 08 when they started a new one for anyone starting after 1 apr 07.

They should have contact details on there as well if you have any technical questions.

PS Have you thought about AVCs as this would help make your pension pot better.

[delboy]

About to leave royal mail and paid in the pension for about a year any one know what will happen to the money I have paid in?

[Lincox]

As you have been in scheme for less than 2 years, I believe that they will pay you back what you have contributed less a deduction for income tax, as you will have benefited from tax relief on the contributions you have made. You may also be able to transfer the funds to another employers pension scheme or to a private pension plan, but in view of the small amount involved this may not be worth while. Contact Pensions Dept to get the full lowdown on this.

[heapsy]

Hi !
Been with royal mail since july 2007, currently no pension,
If i apply now will i have to have the latest pension plan or would i be entitled to an early more beneficial one ?Can anyone point me in the right direction,b.t.w. i am 35 hr week contract.
thanks in advance
Ant

You would now be entered into the now less generous scheme started April 2008 This has a retirement date of 65. Depending on you point of view, (and giving you an honest oppinion) I would consider diversification. A conventional pension has limitations. Currently you may only take 25% of your pension pot as a tax free lump sum. Accessing your pension is now delayed until you are at least 55, and this may change further in future years.You don't say wether or not you have any other pension from a previous employer or indeed a persoanl pension. You could put some money into a cash ISA giving you a greater diversification of asset classes. PM me if you want to know a little more. I would be glad to explain in more detail how I am building my pension.

[naughton]

IF YOU TAKE VR ,WHAT HAPPENS TO YOUR DC PENSION IF YOUVE PAID IN LESS THAN 2 YEARS -CHEERS

[heapsy]

IF YOU TAKE VR ,WHAT HAPPENS TO YOUR DC PENSION IF YOUVE PAID IN LESS THAN 2 YEARS -CHEERS

You can either leave it where it is until you reach 65 (you already get a supplement on top of your FS pension until you reach 65) then draw it. Alternatively you could draw the DC element of your pension at the same time, but take a 5% reduction on the amount you accrued. You will have to do the maths and see if it to your benefit to take it early or leave it until 65. It really depends on your age and how much you could draw in that time. Sorry, but you didn't give your age at present.

[naughton]

age 53

[heapsy]

age 53

EVR for anyone younger than 55 hasn't come in yet. It's in the deal thats on the table now. In future, if the deal goes through, EVR will apply to those with seniority, the 55 years old rule will be scrapped.

[naughton]

when it does come in-what happens to my DC contributions----cheers

[heapsy]

when it does come in-what happens to my DC contributions----cheers

All benefits built up are safe. If say for example, you took EVR, you would have the choice, with the 2nd and 3rd pots( ie the DC elements of your pension) whether you took them then or deferred them until 65. As it stands, you could take the FS part of the pension, plus pot 2, the DC part built up since 31.03.08 until 31.03.10, WITHOUT losing a penny. The 3rd pot you could leave until 65 and get what was in that pot in FULL. Or you could take it with a reduction of 5%. It woul almost certainly be worth taking the 3rd pot when you take the EVR, even tho you lose 5%. This is because you lose 5% of only a very small element of your pension, plus, at 53 you will draw it for 10 years before you even reached 65. (55 is the minimum age you can draw the pension) If you do leave, remember that you need other employment, or some form of income to fund your lifestyle until you reachh 55.

[naughton]

thankyou