Two questions

[paulp]

I started paying into my rm pension 38 years ago do I stop paying after 40 years also if I went down to 24 hours from 39 would this make a big difference to my lump sum and pension

[RobertT]

The maximum number of years you can currently build up via the RMPP is 45.

In 2014 there were changes made that meant from then on our pensions increased with inflation each year rather than with wages. So what you’ve already accrued should be fine, but if you reduced your hours, the pension you build up from then onwards will obviously be less.

Also bear in mind that the RMPP is expected to close in 2018, so assuming that happens your maximum pension from that scheme will be based on your length of service then.
Afterwards you’ll probably be building up a pot of money via the RM Defined Contribution Plan instead which will have no limit to how many years you can pay into it. I say probably because the exact arrangements have yet to be decided.

[paulp]

Thankyou

[cloherty1976]

The maximum number of years you can currently build up via the RMPP is 45.

In 2014 there were changes made that meant from then on our pensions increased with inflation each year rather than with wages. So what you’ve already accrued should be fine, but if you reduced your hours, the pension you build up from then onwards will obviously be less.

Also bear in mind that the RMPP is expected to close in 2018, so assuming that happens your maximum pension from that scheme will be based on your length of service then.
Afterwards you’ll probably be building up a pot of money via the RM Defined Contribution Plan instead which will have no limit to how many years you can pay into it. I say probably because the exact arrangements have yet to be decided.

My understanding was the pension before 2008 was still 40 years and then the after 2008 was 45 years. Maybe I am wrong but that's what I was expecting?

[RobertT]

My understanding was the pension before 2008 was still 40 years and then the after 2008 was 45 years. Maybe I am wrong but that's what I was expecting?

Taken from page 5 of the ‘guide to benefits’ on the pensions website:

The maximum combined pension you can get is equal to that calculated using a maximum of 45 years’ reckonable service. If you complete 45 years’ reckonable service, you will not build up any further pension blocks but, provided you continue in reckonable service, all your pension blocks would continue to be revalued up to the last renewal date before you take your benefits or leave reckonable service.

As I said, in practice if the RMPP closes in 2018 the maximum length of service via the RMPP will be whatever you’ve accrued up until then. So for the majority of members the 45 year rule probably won’t be relevant anyway. After that we'll probably be in the RMDCP which is totally different type of pension scheme.

[heapsy]

Ultimately the real issue regarding pensions is the return. If we continue investing in gilts and bonds then the returns will be poor. The government needs to step in and change this for the good of ALL pension schemes. Over in Canada the Ontario State Teachers Pension fund has managed to buy our National Lottery. Unless schemes in this country can also invest money like this then most will end up working until they drop. Unless that is, people get their heads around the need to save and invest themselves. Yes, I know, before anybody says it, that's easier said than done. However, I would say, "where is your all inclusive holiday coming from when you retire?" Unfortunately, too many are uncomfortable with that question, as they only see as far as next week.

[RobertT]

As far as I know there's nothing really stopping any pension scheme from investing in whatever they want. The reason that gilts are mainly used these days is because they are supposed to offer fairly low but stable returns compared to equities, etc. But obviously the returns have been too low in recent times.