Spouse benefits section B RMPP

[stephen500]

Currently as a section B member my wife will currently recieve 50% of my pension when I pass away. I am presuming that even under the new proposals that the pension I have accumulated up to 2018 that she will still get that 50%. I note that under the proposed new scheme she would get 50% there. But I am not sure what to make of the transitional arrangements , is 50 % dependents pension attach to this on death. So to cut a ramble short. Do I retain the 50% for my wife on my death from my pre 2018 RMPP scheme. And does that flow through to transitional arrangements . Thanks if any one has answers to this.

[RobertT]

The transitional arrangements are still part of the RMPP, all you will be doing is building up more lump sum entitlement from that. So yes, your wife will still get 50% of your RMPP benefits.

[stephen500]

The transitional arrangements are still part of the RMPP, all you will be doing is building up more lump sum entitlement from that. So yes, your wife will still get 50% of your RMPP benefits.

Thank you so much for your replies. I appreciate your help and information.

[stephen500]

The transitional arrangements are still part of the RMPP, all you will be doing is building up more lump sum entitlement from that. So yes, your wife will still get 50% of your RMPP benefits.

Robert T, Have you any idea why in the proposed agreement page 12, that they state that pension arrangements and choices will become more complicated. In particular NRA 65 payable on retirement will become more complicated? Why?

[RobertT]

Robert T, Have you any idea why in the proposed agreement page 12, that they state that pension arrangements and choices will become more complicated. In particular NRA 65 payable on retirement will become more complicated? Why?

Presumably because there will be the addition of the transitional DB Cash Balance also with an NRA of 65, giving members slightly different choices to now. Although really only the same choices that those with AVC's already have!

[stephen500]

Robert T. This is my plan. Retire at 60 (in 2021)taking NRA 60 and 65, with max available lump sum. Hopefully that will be reasonably simple! Note: personally I see this transitional Arrangement becoming permanent, or certainly no change from this "temp " fix as current gov fixated with brexit, unless there is a change of gov.

[RobertT]

Robert T. This is my plan. Retire at 60 (in 2021)taking NRA 60 and 65, with max available lump sum. Hopefully that will be reasonably simple!

It should be simple, but because we will have another NRA65 pot from the DB Cash Balance scheme that will also have to be factored into your plans. Plus the CDC pension with an NRA of 67, assuming that happens.

Note: personally I see this transitional Arrangement becoming permanent, or certainly no change from this "temp " fix as current gov fixated with brexit, unless there is a change of gov.

There’s not much difference between the transitional scheme and RM’s original Cash Balance proposal. And I agree with you, I think we’ll be stuck with it for longer than many people think.

[stephen500]

Robert T. If the new Cdc scheme does make it in before I retire in early 2021, I shall take that at 60 with a reduction, depending on the figures. It would be prob two years money at most and perhaps the scheme may not be running

[baldrick]

I always thought that spouse only gets the 50% pension if the RM pensioner dies within 5 years of retiring. Is that wrong?

[RobertT]

I always thought that spouse only gets the 50% pension if the RM pensioner dies within 5 years of retiring. Is that wrong?

I do think that is wrong!

There are quite a few variations on what a spouse would get depending on whether it’s NRA60 or NRA65. But I think it’s the lump sum that won’t be paid if you die after 5+ years of retirement, rather than the pension.

The 'guide to death benefits' on the pensions website will tell you more.

[stephen500]

I always thought that spouse only gets the 50% pension if the RM pensioner dies within 5 years of retiring. Is that wrong?

If I die within 5 years of taking NRA 60/65 my spouse will get a lump sum = to what I would have received for both pensions. She then would get my full pension for 91 days, followed by a pension = to half of both my pensions for life.
See screen shot. It splits the benefits into lump sums (which she only gets within five years) and then talks about pension payable. No where does it say this benefit will stop.
Else where it does talk about children's pensions being time limited, till they come of age, 18 or 23 if still in full time education or training . (see page 5)
On page 5 it does not say spouses pensions are time limited.
https://www.royalmailpensionplan.co.uk/ ... .08.12.pdf page 11
I double checked: see beyond doubt slide below
https://www.royalmailpensionplan.co.uk/ ... er-you-die

[baldrick]

OK, thanks for clarifying that stephen500.

[stephen500]

OK, thanks for clarifying that stephen500.

I just confirmed with pension hotline that my wife gets 50% pension regardless of when I die...even if I make it to 80 (section B)