Royal Mail pension news and discussion.Please note the advise given in this forum is unofficial, please use the links we have for a more detailed response or see an independent financial adviser.
foxyjarvis wrote:Heapsy, you do include delivery supplement, otherwise I'd be dropping out of PSE. I gain from this but it does seem unfair that people living in London getting £100 more in basic pay are able to supplement that by an extra £32 by putting it in an AVC.
Right, well that's me being told something different. I was told you didn't include it. Every time you ring pensions you get a different story. Might give them a bell this week and try to clarify.
Did you find the answer to this - i receive a processing supplement so will give them a ring to see if i can get an answer to this question.
Will try and ring them on my day off. Had a couple of issues with close family to deal with, then the sudden death of a colleague to get my head around.
foxyjarvis wrote:Heapsy, you do include delivery supplement, otherwise I'd be dropping out of PSE. I gain from this but it does seem unfair that people living in London getting £100 more in basic pay are able to supplement that by an extra £32 by putting it in an AVC.
Right, well that's me being told something different. I was told you didn't include it. Every time you ring pensions you get a different story. Might give them a bell this week and try to clarify.
Did you find the answer to this - i receive a processing supplement so will give them a ring to see if i can get an answer to this question.
Will try and ring them on my day off. Had a couple of issues with close family to deal with, then the sudden death of a colleague to get my head around.
Sorry to hear about your colleague and of course condolences to their family.
foxyjarvis wrote:Heapsy, you do include delivery supplement, otherwise I'd be dropping out of PSE. I gain from this but it does seem unfair that people living in London getting £100 more in basic pay are able to supplement that by an extra £32 by putting it in an AVC.
Right, well that's me being told something different. I was told you didn't include it. Every time you ring pensions you get a different story. Might give them a bell this week and try to clarify.
Did you find the answer to this - i receive a processing supplement so will give them a ring to see if i can get an answer to this question.
Will try and ring them on my day off. Had a couple of issues with close family to deal with, then the sudden death of a colleague to get my head around.
Sorry to hear about your colleague and of course condolences to their family.
Just spoken to someone in pensions. Getting a letter through the post within the next few days explaining how the AVC contributions, staying within PSE is worked out. Will post a reply ASAP.
heapsy wrote:
Just spoken to someone in pensions. Getting a letter through the post within the next few days explaining how the AVC contributions, staying within PSE is worked out. Will post a reply ASAP.
Hawkey99 wrote:Also heard today that Add plan will cease but other AVCs will continue.
When I did contact pensions, I was told that nothing has been decided yet. Also, that the person I spoke to told me he had seen the accounts and and the pension fund wasn't short of money.
Hawkey99 wrote:Also heard today that Add plan will cease but other AVCs will continue.
When I did contact pensions, I was told that nothing has been decided yet. Also, that the person I spoke to told me he had seen the accounts and and the pension fund wasn't short of money.
The two sides are still talking and what we've been told so far are just proposals. But I would assume we’ll hear fairly soon what the pension/AVC situation will be post April 2018, pending any possible alterations due to IA!
Right, I'm back as promised with an update from pensions. As ever they don't make it easy or straightforward to understand, so here goes. Two checks are made to ensure that a member can take part in PSE. 1 A members wages must not fall below £10,000 pa. approx £193 per week. 2 That the national minimum wage has been met. The NMW for 2017 is £7.50. Based on a 39 hour week, pay from April 2017 must be at least £292.50. This gives £7.50 exactly when divided by 39.
They do give an example Gross pay £504.89
Minus
RMPP contribution £ 25.62
Addplan £ 38.43
Bonusplan £ 2.88
Flexiplan £ 198.00
Total £ 264.93
Balance £ 239.96 divided by 39 hours =£6.15
In the above example, deduction have taken the member below the NMW of £7.50
Not, in my opinion, the clearest of examples. Basically, if you take all your AVC deductions regardless of which plan they go into, from your GROSS pay, you need to have at least £7.50 per hour worked, after those deductions, as your NET, or take home pay. So in other words, the higher your GROSS pay / hours worked, the greater the contribution you can make to AVCs.
Remember to use your contracted hours, not overtime hours. Also, make sure that your AVCs, when added to your pension, are not more than 25% of the total, otherwise, it will be taxed.
Hope that helps.
Thanks for that Heapsy. I'm putting too much into the Flexiplan (I also do Addplan and Bonusplan) to get PSE at the minute - but I think I might lower it a bit to qualify. Lets say £10 less going into AVC's but maybe a gain of £12 or £13 in takehome pay. I could stick it in an ISA or Bitcoin or something and be £3 up straight from the off.
heapsy wrote:Right, I'm back as promised with an update from pensions. As ever they don't make it easy or straightforward to understand, so here goes. Two checks are made to ensure that a member can take part in PSE. 1 A members wages must not fall below £10,000 pa. approx £193 per week. 2 That the national minimum wage has been met. The NMW for 2017 is £7.50. Based on a 39 hour week, pay from April 2017 must be at least £292.50. This gives £7.50 exactly when divided by 39.
They do give an example Gross pay £504.89
Minus
RMPP contribution £ 25.62
Addplan £ 38.43
Bonusplan £ 2.88
Flexiplan £ 198.00
Total £ 264.93
Balance £ 239.96 divided by 39 hours =£6.15
In the above example, deduction have taken the member below the NMW of £7.50
Not, in my opinion, the clearest of examples. Basically, if you take all your AVC deductions regardless of which plan they go into, from your GROSS pay, you need to have at least £7.50 per hour worked, after those deductions, as your NET, or take home pay. So in other words, the higher your GROSS pay / hours worked, the greater the contribution you can make to AVCs.
Remember to use your contracted hours, not overtime hours. Also, make sure that your AVCs, when added to your pension, are not more than 25% of the total, otherwise, it will be taxed.
Hope that helps.
Ok thanks for getting back - wish pensions would make things simpler and clearer to understand .
heapsy wrote:Right, I'm back as promised with an update from pensions. As ever they don't make it easy or straightforward to understand, so here goes. Two checks are made to ensure that a member can take part in PSE. 1 A members wages must not fall below £10,000 pa. approx £193 per week. 2 That the national minimum wage has been met. The NMW for 2017 is £7.50. Based on a 39 hour week, pay from April 2017 must be at least £292.50. This gives £7.50 exactly when divided by 39.
They do give an example Gross pay £504.89
Minus
RMPP contribution £ 25.62
Addplan £ 38.43
Bonusplan £ 2.88
Flexiplan £ 198.00
Total £ 264.93
Balance £ 239.96 divided by 39 hours =£6.15
In the above example, deduction have taken the member below the NMW of £7.50
Not, in my opinion, the clearest of examples. Basically, if you take all your AVC deductions regardless of which plan they go into, from your GROSS pay, you need to have at least £7.50 per hour worked, after those deductions, as your NET, or take home pay. So in other words, the higher your GROSS pay / hours worked, the greater the contribution you can make to AVCs.
Remember to use your contracted hours, not overtime hours. Also, make sure that your AVCs, when added to your pension, are not more than 25% of the total, otherwise, it will be taxed.
Hope that helps.
Ok thanks for getting back - wish pensions would make things simpler and clearer to understand .
Me too. This looks like an actual payslip details. The numbers are so random it has to be. For the record, I'm 39 hour. £412.30. £14.68 + £9.28 delivery supplements. £21.69 RMPP section C. I pay the following AVCs. £56 Flexi Growth. £35 Flexi Balanced. £25 Flexi Cautious. £2.88 Bonus Plan Lifestyle. Total £118.88 and remain eligible for PSE.
jetblack wrote:Thanks for that Heapsy. I'm putting too much into the Flexiplan (I also do Addplan and Bonusplan) to get PSE at the minute - but I think I might lower it a bit to qualify. Lets say £10 less going into AVC's but maybe a gain of £12 or £13 in take home pay. I could stick it in an ISA or Bitcoin or something and be £3 up straight from the off.
Looking at my last pension statement, and checking my AVC account so far, I may actually have to reduce my AVC contributions at some point, if RM leave the arrangement as it is. Otherwise, I may actually accrue more in AVCs than would be permitted, in terms of it making up 25% of my total pot.
I have three weeks of contributions which took me out of PSE, so had the same problem. This came about because the pension office are very vague about what is or isn't allowed in terms of contribution levels. It really does depend on who you talk to.
I also have a stocks and shares ISA which is doing well, so may put more contributions into that. Currently I am paying into 7 funds, but have my eye on 2 more that I have been studying carefully.
Last edited by heapsy on 03 Sep 2017, 16:23, edited 1 time in total.
jetblack wrote:Thanks for that Heapsy. I'm putting too much into the Flexiplan (I also do Addplan and Bonusplan) to get PSE at the minute - but I think I might lower it a bit to qualify. Lets say £10 less going into AVC's but maybe a gain of £12 or £13 in take home pay. I could stick it in an ISA or Bitcoin or something and be £3 up straight from the off.
Looking at my last pension statement, and checking my AVC account so far, I may actually have to reduce my AVC contributions at some point, if RM leave the arrangement as it is. Otherwise, I may actually accrue more in AVCs than would be permitted, in terms of it making up 25% of my total pot.
I have three weeks of contributions which took me out of PSE, so had the same problem. This came about because the pension office are very vague about what is or isn't allowed in terms of contribution levels. It really does depend on who you talk to.
I also have a stocks and shares ISA which is doing well, so my put more contributions into that. Currently I am paying into 7 funds, but have my eye on 2 more that I have been studying carefully.
I think this will be the case for me but I'm going to carry on then let's say for instance I had 40k too much!I would then transfer that amount out into a drawdown fund and retire 4 years earlier taking 10k a year tax free as it's below your personal allowance....
jetblack wrote:Thanks for that Heapsy. I'm putting too much into the Flexiplan (I also do Addplan and Bonusplan) to get PSE at the minute - but I think I might lower it a bit to qualify. Lets say £10 less going into AVC's but maybe a gain of £12 or £13 in take home pay. I could stick it in an ISA or Bitcoin or something and be £3 up straight from the off.
Looking at my last pension statement, and checking my AVC account so far, I may actually have to reduce my AVC contributions at some point, if RM leave the arrangement as it is. Otherwise, I may actually accrue more in AVCs than would be permitted, in terms of it making up 25% of my total pot.
I have three weeks of contributions which took me out of PSE, so had the same problem. This came about because the pension office are very vague about what is or isn't allowed in terms of contribution levels. It really does depend on who you talk to.
I also have a stocks and shares ISA which is doing well, so my put more contributions into that. Currently I am paying into 7 funds, but have my eye on 2 more that I have been studying carefully.
I think this will be the case for me but I'm going to carry on then let's say for instance I had 40k too much!I would then transfer that amount out into a drawdown fund and retire 4 years earlier taking 10k a year tax free as it's below your personal allowance....
Again thanks for all the info - i have had more concise and clear help from all of you than pensions !
It seems to me that pensions go out of their way to be obscure and vague in what should be easily available to all employees - in a simple and concise manner.
A lot of people are now investing in Vanguard Life strategy funds. These range from 20% equity 80% bonds to 100% equity depending on your risk appetite.
I am invested a bit in these. They are a very low cost fund as they are passively managed and do not have an active fund manager. They track equity markets.
Looks like the ballon will go up tomorrow. Surely there has to be a compromise before its to late.
