Pension/redundancy pay

[Melvyn Langston]

I'm thinking of taking my pension next year when I reach 60. I would like to carry on working and would like to know if I was to be made redundant at a future date,will I lose out on any redundancy pay by taking my pension? MGL

[baldrick]

No, you will be better off taking your pension before redundancy, at least under current MTSF terms.
If you take your pension at the same time as Voluntary Redundancy, you would get a VR payment of 26 weeks.
If you take all your pension and come out of all the RM pension schemes altogether and took Voluntary Redundancy later, you would get a VR payment of 26 weeks to 104 weeks, depending on your length of service.
Of course this would depend on MTSF terms still applying.

[windermeredave]

No, you will be better off taking your pension before redundancy, at least under current MTSF terms.
If you take your pension at the same time as Voluntary Redundancy, you would get a VR payment of 26 weeks.
If you take all your pension and come out of all the RM pension schemes altogether and took Voluntary Redundancy later, you would get a VR payment of 26 weeks to 104 weeks, depending on your length of service.
Of course this would depend on MTSF terms still applying.

I took my pension when I turned 60 two years ago, I no longer pay into the scheme, this November I will have completed 28 years service, if I was offered redundancy now how much would I be entitled to?

[baldrick]

I took my pension when I turned 60 two years ago, I no longer pay into the scheme, this November I will have completed 28 years service, if I was offered redundancy now how much would I be entitled to?

If you have come out of the RM pension schemes completely, including the new one they introduced in January (I can't remember the name), you should get the maximum 104 weeks VR payment under MTSF.

Edit: To get the maximum 104 weeks VR you have to be over 57 with 20 years service.

[stodgy88]

``im just in the workplace pension,would i receive the maximum 104 weeks pay-thanks

[baldrick]

``im just in the workplace pension,would i receive the maximum 104 weeks pay-thanks

No. If you are still in an RM pension you would get a slightly enhanced pension + 26 weeks VR payment.

To get the maximum 104 weeks VR, you have to have left the RM pension schemes, be at least 57, and have at least 20 years service.

[stodgy88]

i am not in royal mail defined contribution pension ,just the work place pension introduced by the government - i am just 56 and have worked for royal mail for 28 years.

[RobertT]

i am not in royal mail defined contribution pension ,just the work place pension introduced by the government - i am just 56 and have worked for royal mail for 28 years.

I think you'll find you are in the RM DC pension, it's just that you are probably only paying the minimum percentage of your pay based on auto-enrollment rules, which is only 1%.

Download the 'plan guide' for more info:
http://www.zurich.co.uk/royalmaildcplan ... y/test.htm" onclick="window.open(this.href);return false;

[cloherty1976]

RobertT I have the usual pension and have never touched this but I do have my avc which was closed and frozen a few years ago can't remember the name but it's one of the big companies. I remember we got a choice of 2 firms And I chose Zurich as my avc. I know I took the high risk option of 6. I get statements and they look good on both policies but does this affect me and maybe I should keep a better eye on them. I took the high risk option due to markets being low after recession and thought they would grow was my opinion and my plan was to move to a lower risk at a later date when markets recover. Sorry to waffle on..

[RobertT]

RobertT I have the usual pension and have never touched this but I do have my avc which was closed and frozen a few years ago can't remember the name but it's one of the big companies. I remember we got a choice of 2 firms And I chose Zurich as my avc.

In 2010 Zurich took over all the AVC’s from various other providers. There was no second choice – just Zurich.
More info here: http://royalmailpensionplan.co.uk/23/investment-options" onclick="window.open(this.href);return false;

I know I took the high risk option of 6. I get statements and they look good on both policies but does this affect me and maybe I should keep a better eye on them. I took the high risk option due to markets being low after recession and thought they would grow was my opinion and my plan was to move to a lower risk at a later date when markets recover. Sorry to waffle on..

Yes there’s 6 options, I assume your high risk option is the growth fund, which I have aswell!
A full list is here: http://royalmailpensionplan.co.uk/115/avc-documents" onclick="window.open(this.href);return false;

I’m not quite sure what you mean by ‘does this affect me’ but in my opinion AVC’s are a good way to provide more income in retirement because of the tax relief and extra RM contribution in Bonusplan(Section C only). RM also allow you the added benefit of combining your main pension with your AVC’s so you can take the tax free lump sum from AVC rather than the main scheme, therefore providing a higher indexed linked income for the rest of your life. A lot of salary based schemes don't allow this option.

[windermeredave]

I took my pension when I turned 60 two years ago, I no longer pay into the scheme, this November I will have completed 28 years service, if I was offered redundancy now how much would I be entitled to?

If you have come out of the RM pension schemes completely, including the new one they introduced in January (I can't remember the name), you should get the maximum 104 weeks VR payment under MTSF.

Edit: To get the maximum 104 weeks VR you have to be over 57 with 20 years service.

Blimey I tick all those boxes, here`s hoping

[stodgy88]

with all due respect ,i know i am not in the defined pension plan,only the one the government recently offered to all people in business,s over a certain size.

[RobertT]

with all due respect ,i know i am not in the defined pension plan,only the one the government recently offered to all people in business,s over a certain size.

From I think about 12 months ago RM had to offer all employees access to a pension under the governments auto-enrollment reforms (because they are over a certain size), and around January/February this year for new starters. It is run by RM using Zurich as it's 'platform'. With respect, you are in in RM DC plan, it's the only one you can be in as the government do not run any pension schemes other than the state pension I suppose.

More info here:
http://www.pensionsadvisoryservice.org. ... -enrolment" onclick="window.open(this.href);return false;

[cloherty1976]

Thanks RobertT I'll just leave it as it is then. I do it to save tax

[stodgy88]

i stand corrected,should have known better than to question your superior knowledge - 1-0,cheers