Pension clawback

[gaza0523@]

Does anyone know if pension clawback affects our royal mail pension .Clawback is when the government just top up the company pension until it gets to what they pay people
Or if you get more than the government pension the government reduces their contribution accordingly
I'm guessing only someone with 30years service and also now retired can answer this question

[RobertT]

Section C of the RMPP has a sort of clawback arrangement, also known as the pension supplement. This is paid from taking your pension until you reach state pension age. Although if you stay in RM employment or leave and then are re-employed, then you will not get the supplement at all.

But all the info on this is in the relevant literature/annual statements, etc so shouldn't come as a surprise to anybody.

Sections A/B members do not have a supplement nor will any kind of clawback occur, as far as I’m aware.

[stodgy88]

HELLO, I AM ALREADY TAKING MY ROYAL MAIL PENSION ,I HAVE BEEN WITH THE FIRM FOR 30 YEARS,IF I LEFT WITH EVR ,HOW WOULD MY PENSION BE AFFECTED,IM 58 THANKS.

[RobertT]

HELLO, I AM ALREADY TAKING MY ROYAL MAIL PENSION ,I HAVE BEEN WITH THE FIRM FOR 30 YEARS,IF I LEFT WITH EVR ,HOW WOULD MY PENSION BE AFFECTED,IM 58 THANKS.

Did you take all of your pension? Or just the NRA60 part?

If you took all of your RMPP you wouldn’t be offered EVR anyway as you’re already getting your pension. But you might still get offered VR, if so, your pension wouldn't be affected.

[stodgy88]

Thanks for reply ,taken all pension,whats the difference in monetary terms between EVR and VR ,thanks.

[stodgy88]

VR – is a payout of up to 104 weeks pay depending on age and service and is offered to the under 55’s or to people who aren’t in any of the RM pension schemes.
EVR is getting you RMPP early without any reduction plus a small enhancement and 26 weeks pay. It’s offered to the over 55’s because that’s the earliest age your pension will be accessible, except for ill health reasons. from a earlier post thanks.

[RobertT]

Yes, except under the terms of the new MTSF agreement which came into force in October, the maximum cost to the business of either EVR or VR must not exceed 2 years pay. So in practice EVR probably won’t be an option for most long serving posties anyway, just VR.

[fly-catchers]

Yes, except under the terms of the new MTSF agreement which came into force in October, the maximum cost to the business of either EVR or VR must not exceed 2 years pay. So in practice EVR probably won’t be an option for most long serving posties anyway, just VR.

Does this mean that the enhanced pension quote with supplement added to the 6 month compensation package must be now no more than your pre-tax annual salary over two years? And does the salary figure include the two supplements we get?

[RobertT]

Does this mean that the enhanced pension quote with supplement added to the 6 month compensation package must be now no more than your pre-tax annual salary over two years?

Yes.

Here's the important bit of the new MTSF agreement:

Voluntary Redundancy Cap
It has not been possible to persuade the business to further extend the suspension of the cap. With effect from 1st October this year the suspension will be lifted. This does not affect redundancy terms based on the multiplier but will limit the ability of members of the Royal Mail Pension Plan (RMPP) to receive immediate payment of enhanced pension to circumstances in which the total cost to the business does not exceed the equivalent of two year’s pensionable pay.
Where the combined redundancy and pension cost would exceed the equivalent of two years pensionable pay, cash compensation of 104 weeks pensionable pay will be offered instead.

And does the salary figure include the two supplements we get?

I’m not sure to be honest, but I don’t think so. Perhaps someone else could answer that.

[stodgy88]

If redundancy is offered to part time staff at some point,does seniority take preference or can the company decide who gets chosen i.e EVR before VR. .

[RobertT]

If redundancy is offered to part time staff at some point,does seniority take preference or can the company decide who gets chosen i.e EVR before VR. .

If office circumstances decree that part timers are considered for EVR/VR, it should be on a seniority basis. Whether EVR or VR is offered to any individual will depend on their age and cost to the business.

[stodgy88]

thanks.