Opting out of pension

[thelastpost]

Ive been with royal mail for 30 years and have decided to stop paying into the pension plan however before I send my letter off to HR I would like to some advice. Does me opting out of the pension plan make any difference to redundancy money I might get offered in the future .

[macphee1]

Ive been with royal mail for 30 years and have decided to stop paying into the pension plan however before I send my letter off to HR I would like to some advice. Does me opting out of the pension plan make any difference to redundancy money I might get offered in the future .

Do not opt out. Have you taken financial advice. You would be giving up free money from Royal Mail.

[thelastpost]

Have made my own mind up about this, in todays climate a 30 years (protected) pension is not too bad
just want to know that if i opt out it does not effect any redundancy payments i might get offered in the future

[oralrural]

]Have made my own mind up about this, in todays climate a 30 years (protected) pension is not too bad
just want to know that if i opt out it does not effect any redundancy payments i might get offered in the future.

Drawing both of my pensions after 20 years.
Started another one in Febuary with Zurich,i put in 5% and Royal Mail put in 7% thats better than a savings account.

Draw your pension i was told because something is going to happen and it won't be good

[baldrick]

just want to know that if i opt out it does not effect any redundancy payments i might get offered in the future

Under current MTSF2 arrangements, no it would not affect any VR payments you might get offered in the future.

You would actually get more if you have already taken your RM pension and completely come out of all RM pension schemes.

If you are under 55 you would get the maximum 104 weeks VR payment with 30 years service (if you are over 46), and your pension frozen.
If you were over 55 and still in any RM pension schemes you would get your accrued pension, slightly enhanced + 26 weeks VR payment.

If you have taken your RM pension and come out of all RM pension schemes, you would get the maximum 104 weeks VR payment, with 30 years service.

This is the current MTSF2 arrangement as I understand it, but I am not an expert, so you should check this with a CWU Rep who has had training on MTSF, or RM pensions section.
Also RM might change MTSF, or any future privatised company might change it, or scrap it completely, so the arrangements could change in the future.

[genesis]

So, if your 56 ,you might decide not to take your pension until 60, which would mean you would only have 26 weeks vr , but if your 55 you would get 2 years vr .
Why is this?

[baldrick]

So, if your 56 ,you might decide not to take your pension until 60, which would mean you would only have 26 weeks vr , but if your 55 you would get 2 years vr .
Why is this?

If you took your pension at 60 you would still get 104 weeks VR if you had over 30 years service, if you take VR after taking your pension.That is what I did.
You get 26 weeks vr, if you are taking Early Voluntary Retirement, ie taking your pension and redundancy at the same time.

[barrowc]

The reason for the smaller redundancy payment if you take your pension at the same time is because your pension gets enhanced - see page 21 of the MTSF 2010 agreement at http://www.royalmailchat.co.uk/communit ... 36&t=33667

[genesis]

Thanks ,lets hope that mtsf remains then ,but didnt it end in april?

[dav1524]

Thanks ,lets hope that mtsf remains then ,but didnt it end in april?

I think i heard somewhere it was extended till april 2014.

[sandradarlo]

1 am 60 in june and want evr but I have 2 pensions 1 im drawing the other 1 still paying into do any 1 know if I need to cash the second 1 in to get the 2 years pay and if I stay in it will I only get the 26 weeks , need help before I decide what to do.

[baldrick]

1 am 60 in june and want evr but I have 2 pensions 1 im drawing the other 1 still paying into do any 1 know if I need to cash the second 1 in to get the 2 years pay and if I stay in it will I only get the 26 weeks , need help before I decide what to do.

If you are still paying into an RM pension you will get 26 weeks VR payment with a slightly enhanced pension.
If you are not paying into any RM pension you would get 104 weeks VR payment - if you have at least 20 years service.