NRA 67

TheTrolleyMan · Post by **TheTrolleyMan** » 01 Feb 2018, 20:16

ABSOLUTE DISGRACE

crazyclacy · Post by **crazyclacy** » 04 Feb 2018, 09:32

Shocking bud
And it's a gamble what you get back as well.

Post by **RobertT** » 04 Feb 2018, 11:14

That's an NRA of 67 on a scheme that might not even be introduced!

heapsy · Post by **heapsy** » 04 Feb 2018, 16:17

One of the reasons I'm voting no.

Post by **Aquarius** » 04 Feb 2018, 16:31

To be honest the more i read about this new scheme the more hesitant i am - simply looks like DC/AVC's with a few more bell's and whistles on.

I am in the RM DB Section C like most of us - i accept that this will close - i don't have a choice in that.

I would have liked to have had options - DC scheme with similar levels of RM contributions or this new scheme.

Post by **RobertT** » 04 Feb 2018, 16:46

I agree dandydon!

When RM first announced the Cash Balance plans a few months ago, they did give current RMPP members the choice of having a DC scheme, with the same employer contributions, instead. Stating that: ‘For some members this could be a better option. It will depend on a range of factors, such as your age’.

Surely that is still the case?

Post by **Aquarius** » 04 Feb 2018, 17:06

RobertT wrote:I agree dandydon!

When RM first announced the Cash Balance plans a few months ago, they did give current RMPP members the choice of having a DC scheme, with the same employer contributions, instead. Stating that: ‘For some members this could be a better option. It will depend on a range of factors, such as your age’.

Surely that is still the case?

I hope so !!

It really is amazing that with only a few weeks until the RMPP closes and we have this uncertainty

AVC's - don't know yet

New scheme or DC scheme choice - don't know yet.

Robert i bow humbly to your far superior knowledge on these matters - but i think a lot of members are going to be in for a shock.

Post by **nataddick** » 04 Feb 2018, 17:10

dandydon/Robert - I agree !

The latest Q&A update on the myroyalmail.com website makes a reference to a DC option but does not mention the crucial employer’s contribution rate. My preferred option would be DC at 13.6% with my own fund selection. Let’s hope it still exists !

‘13. Why are you defaulting members into the Defined Benefit Cash Balance Scheme?

We believe that the Defined Benefit Cash Balance Scheme will be the best option for the majority of RMPP members. RMPP members will have the choice to opt into the Defined Contribution scheme if they wish. Members will receive a letter and booklet from the Company in the coming weeks, explaining more about our agreement on pensions.’

https://www.myroyalmail.com/news/2018/0 ... nswered%20" onclick="window.open(this.href);return false;

Post by **RobertT** » 04 Feb 2018, 18:48

My reading of that and info in the agreement, is from 1st April 2018 we will get the choice of:

1. The DBCB scheme, that offers certain guarantees as long as we take the money at the NRA’s of either 60 or 65. With combined contributions of 19.6% of pay, minus the LED for section C members ; or

2. The current DC scheme, which offers no guarantees but has the flexibility to access the pot from 55+. With combined maximum contributions of 16% of pay, without the LED reduction. So a lower percentage of a higher amount, but less in actual money terms.

As for the CDC scheme, personally I find it quite hard to get a grip of it! It’s a totally different concept to anything I’ve come across in my 20+ years of being interested in pensions.
I don’t want to be too pessimistic, but I don’t think the required legislation/regulation will be granted any time soon.
So I plan to cross that bridge when or if I need to.

NWpostie · Post by **NWpostie** » 04 Feb 2018, 19:09

In the meantime we will default to DC scheme until such time we have the required legislation in place.

I have my doubts about the new scheme.

TheTrolleyMan · Post by **TheTrolleyMan** » 04 Feb 2018, 19:28

Too many schemes , ifs , what's and maybes ! It's gonna be a NO vote from me !

fishtank · Post by **fishtank** » 04 Feb 2018, 20:12

I think I would rather take my chances with an individual DC even at 10%+6% than get involved in what looks more like a ponzi scheme than anything else.

If I'm going to be poor in retirement I would rather know now when I have an opportunity to do something about it than go to the bank one day and find my pension is £60 for the month because there's not enough full-time staff left in royal mail to support the scheme.

Post by **nataddick** » 04 Feb 2018, 20:54

My wife works for a high street bank and they have recently changed her DC scheme to a Master Trust arrangement which has significantly lowered her annual charges, yet retained freedom of fund choice and accessibility afforded under the new pension freedoms. Did the CWU even consider this option which I thnk would have delivered a preferred outcome for all members, given the closure of RMPP. Really not happy with CDC option and the vague commitment by both sides.

We have a 4 Pillars deal that, depending on your own perspective, each has a different weighting rather than just 25% each. For me, being closer to retirement and not involved in delivery, I would weight the pension pillar at around 50%. The 4 Pillars strategy has not produced a viable pension solution and, if asked to vote on the overall agreement right now, I am waivering on the side of NO.

heapsy · Post by **heapsy** » 04 Feb 2018, 21:33

fishtank wrote:I think I would rather take my chances with an individual DC even at 10%+6% than get involved in what looks more like a ponzi scheme than anything else.

If I'm going to be poor in retirement I would rather know now when I have an opportunity to do something about it than go to the bank one day and find my pension is £60 for the month because there's not enough full-time staff left in royal mail to support the scheme.

Me too. When you are retired there is nothing you can do if things change suddenly. As you say regarding the number of employees, as they drop, it will be harder to sustain the scheme for the future. Better to have some certainty, as with the DC scheme.

Post by **stephen500** » 05 Feb 2018, 10:08

You can take it any time above 55 but with the standard reduction. If you decided to take it at 65, you may lose prob 10%.