Impact of new pension agreement for previous POPS scheme

Fishtoft4 · Post by **Fishtoft4** » 13 Dec 2017, 15:53

Looking at the impact on any previous member of the POPS scheme relating to the proposed new agreement reference the change to including the first £4000 of your salary as now pensionable could any answer the following:-

If someone is due to retire at 60 between now and when the current scheme is due to cease March 2018 would they still benefit from this addition to the above and any other increases?

This has been agreed in principle however, is has not been voted on or approved by parliament, which of these takes president?

Would it be beneficial to perhaps not draw on this pension until this is decided as it will impact greatly on your pension payment for life?

Any information on this matter would be much appreciated to anyone who is affected by this situation.

Thank you

Post by **RobertT** » 13 Dec 2017, 17:05

Fishtoft4 wrote:Looking at the impact on any previous member of the POPS scheme relating to the proposed new agreement reference the change to including the first £4000 of your salary as now pensionable could any answer the following:-

If someone is due to retire at 60 between now and when the current scheme is due to cease March 2018 would they still benefit from this addition to the above and any other increases?

The changes from 1st April 2018 whatever they turn out to be, only apply to those employed after that date.

The proposed removal of the Lower Earnings Deduction, which is actually £3,328, for Section C(ex POPS) would mean a higher accrual rate/higher contribution rate for current employees.

Anyone who has left RM or already taken their pension before 1st April 2018 will not be affected in any way.

This has been agreed in principle however, is has not been voted on or approved by parliament, which of these takes president?

Nothing has been agreed, all we have so far is suggestions on what might happen. It will only become fact once the RM & CWU have come to an agreement and if the government pass legislation to enable any new CDC scheme to be implemented. Neither is guaranteed!

Would it be beneficial to perhaps not draw on this pension until this is decided as it will impact greatly on your pension payment for life?

It will only affect pension accrued after 1st April 2018. It won’t mean the pension you’ve already built up will be any different.

Fishtoft4 · Post by **Fishtoft4** » 13 Dec 2017, 17:30

Hi Robert

Thank you very much for your swift response its certainly much appreciated. Well its out of my hands now or anyone retiring prior to any agreement.

Take care

BeamishStout · Post by **BeamishStout** » 14 Dec 2017, 16:37

As I intend retiring in April 2018 the only thing of any slight significance for me personally which will be whether the final settlement consolidates any final 2017 pay award to April 2017. If that happened it would make only a slight difference to my NRA60 pension (as that uses my final pensionable pay). RM would rather give us the equivalent lump sum and only start any consolidation in 2018! But either way I am not going to gain much or lose very much.