So which is best of the worst schemes.

Hawkey99 · Post by **Hawkey99** » 18 Feb 2018, 17:56

I assume of you have a large amount in your AVCs and are in section C that the best of the poor options would be the new RMDCP.

Any thoughts ??

heapsy · Post by **heapsy** » 18 Feb 2018, 18:58

Hawkey99 wrote:I assume of you have a large amount in your AVCs and are in section C that the best of the poor options would be the new RMDCP.

Any thoughts ??

If that's the DC scheme then yes, for me at least. I can see in a few years time, with the CDC scheme, we will be here again, discussing yet another new scheme, as we are only 10 years after the last one. I understand pensions quite well, but tbh the whole thing is getting ridiculous.

Hawkey99 · Post by **Hawkey99** » 18 Feb 2018, 19:21

Yes I think it is the DC scheme with plenty of acronyms..........

I am really interested in pension and am slowly learning a little bit but my goodness this lark is a minefield.......

The other question is will the new scheme ever get implemented.

Cheers

Post by **nataddick** » 18 Feb 2018, 20:39

For the transitional period, in my view, you need to look at the definitions of ‘pensionable’ pay for both DC and DBCBC which are very different, and work through the combined employer/employee contribution rates for each scheme.

Then, compare the DC investment choices/potential returns to the guaranteed DBCBC option. The length of the transition period to CDC is, of course, an unknown but I work on one year at a time ! It may never ever materialise.

I have done this and for me the DBCBS option is the preferred option, given both the link to RMPP and the higher employer contribution rate of 13.6%. It will provide an additional cash pot to ‘top-up’ my overall pension pot that comprises RMPP benefits, plus AVC’s from both Flexiplan and Bonusplan.

As I understand it, a new Pensions booklet giving a lot more detail will follow around the end of the month and so I will reserve my final judgement until I am receipt of it.

Will we be allowed to opt for DC, post CDC implementation,is still an unknown but will surely be revealed in the impending tome. Given a choice, I will opt for DC and transfer the accumulated fund into my existing SIPP and then maximise the flexible options that it provides. For me, the decision is about retaining some form of control over my finances rather than rely on a new, innovative option that provides absolutely no guarantees, rather than a Wage in Retirement.

jetblack · Post by **jetblack** » 18 Feb 2018, 21:06

nataddick wrote: Given a choice, I will opt for DC and transfer the accumulated fund into my existing SIPP and then maximise the flexible options that it provides. For me, the decision is about retaining some form of control over my finances rather than rely on a new, innovative option that provides absolutely no guarantees, rather than a Wage in Retirement.

A fair plan - and agreed.

So after all the to-ing and fro-ing and independant actuarial advice, after all the promise of a new DB scheme (WinRS), even after the 89% vote- even after all that, we end up here - that the least worst option may well be the original DC scheme - which itself is crap - so much so that its only real benefit is its ability to allow a transfer out of it.

What a waste of everyones time.

Poor job CWU, poor job.

You have to hand it to them though, an absoultely stonkingingly good job from RMG

Post by **stephen500** » 19 Feb 2018, 10:56

nataddick wrote:For the transitional period, in my view, you need to look at the definitions of ‘pensionable’ pay for both DC and DBCBC which are very different, and work through the combined employer/employee contribution rates for each scheme.

Then, compare the DC investment choices/potential returns to the guaranteed DBCBC option. The length of the transition period to CDC is, of course, an unknown but I work on one year at a time ! It may never ever materialise.

I have done this and for me the DBCBS option is the preferred option, given both the link to RMPP and the higher employer contribution rate of 13.6%. It will provide an additional cash pot to ‘top-up’ my overall pension pot that comprises RMPP benefits, plus AVC’s from both Flexiplan and Bonusplan.

As I understand it, a new Pensions booklet giving a lot more detail will follow around the end of the month and so I will reserve my final judgement until I am receipt of it.

Will we be allowed to opt for DC, post CDC implementation,is still an unknown but will surely be revealed in the impending tome. Given a choice, I will opt for DC and transfer the accumulated fund into my existing SIPP and then maximise the flexible options that it provides. For me, the decision is about retaining some form of control over my finances rather than rely on a new, innovative option that provides absolutely no guarantees, rather than a Wage in Retirement.

With just under 3 years to go, as a section B member, it is also the DBCB scheme (Temp option) which I hope will remain temp till I leave in early 2021

fishtank · Post by **fishtank** » 19 Feb 2018, 14:26

Once in the transitional scheme I suspect your goose is cooked. I could be wrong but it's difficult to see how members could be convinced to join the CDC if there was an individual DC available. Once you take away what will need to go into the DB lump sum scheme contributions going in to both the CDC and DC will be around the same so the only real difference without getting into investment strategies will be the lump sum scheme itself.

It's not a very good lump sum scheme, especially if you've only 10 years to go and only get 25% of that meagre lump sum tax free.

fishtank · Post by **fishtank** » 19 Feb 2018, 14:47

What surprised me was how many younger members want to stay in the DC scheme, I think the biggest issue was the level of contributions but most of them seem happy with 10% and 6%. I think it's a reflection of their wish to have some kind of control over their futures. Some of them have seen decent gains lately with their investment pot and are wary of giving that up for an untried and unproven collective scheme even if it might bring better returns. Might is a big word.

Royal Mail may have a fight on its hands getting members to sign up but of course it will use the old trick of active opt out, if you don't actively opt out you're in and staying in.

heapsy · Post by **heapsy** » 19 Feb 2018, 16:20

fishtank wrote:What surprised me was how many younger members want to stay in the DC scheme, I think the biggest issue was the level of contributions but most of them seem happy with 10% and 6%. I think it's a reflection of their wish to have some kind of control over their futures. Some of them have seen decent gains lately with their investment pot and are wary of giving that up for an untried and unproven collective scheme even if it might bring better returns. Might is a big word.

Royal Mail may have a fight on its hands getting members to sign up but of course it will use the old trick of active opt out, if you don't actively opt out you're in and staying in.

Or it could just be like it is in our office "I'm not arsed, I wont be here when I get to 65 anyway".