pension can we

hans solo · Post by **hans solo** » 05 Jan 2017, 20:16

freeze our pension and transfer it to private holders
can we stop paying into fund and or reduce our payments
thoughts because our once rosy pension aint going to be worth very much
also we will be paying into a fund which pays out higher pensions to members currently retired than what were going to receive madness

Post by **TrueBlueTerrier** » 05 Jan 2017, 20:26

hans solo wrote:can we stop paying into fund and or reduce our payments

Yes but by reducing your payments, Royal Mail will also reduce theirs as well. So your pension pot will be even smaller. My intention is to increase my payments to maximum.

hans solo wrote:thoughts because our once rosy pension aint going to be worth very much

Still more than you would get paying (by yourself) into a Private Pension scheme. You'd also lose the 10% RM will pay into the new one.

hans solo wrote:also we will be paying into a fund which pays out higher pensions to members currently retired than what were going to receive madness

Yes but if they reduced those pensions, then yours that you have built up already would be reduced as if you have been at RM a while and have entitlement to Pension A/B or C, those are the ones that would be affected under your plan.

So to round up, the Pension attack is wrong, but in my opinion it would be financial suicide to not pay into the new one, because however you dress it up withdrawing from a company pension scheme where you in effect get free money added by the Business, and changing to a private pension, you'd have to pay a lot more in to get the same pension, even the one after 2018.

Post by **RobertT** » 06 Jan 2017, 04:07

hans solo wrote:freeze our pension and transfer it to private holders

You can stop paying into the RMPP if you wish and you can transfer the pension you’ve built up from 2012 onwards into a private pension. But you’d be giving up valuable index linked pension in favour of another DC arrangement and therefore compounding the effects of the pension closure.
You cannot transfer pre 2012 pension(RMSPS) that is the bit the government is responsible for.

can we stop paying into fund and or reduce our payments

You can stop paying into the RMPP if you want but you can’t reduce payments – it’s either in or out! You don’t have to join the ‘new’ DC scheme or you could pay a reduced contribution if that’s what you want to do. But why refuse ‘free money’ from RM and why make your pension situation worse?

thoughts because our once rosy pension aint going to be worth very much

If you opt out or pay a reduced amount, it’ll worth even less!

also we will be paying into a fund which pays out higher pensions to members currently retired than what were going to receive madness

Come 2018 all contributions will be going into your own DC pot with your name on it, and you will be able to do a number of different things with that money from age 55 onwards. You will no longer be paying into the RMPP.