Both Pensions

Post by **mudmonster** » 02 Aug 2018, 11:59

Hello,Anybody out there who can answer this question,when I retired at 55 on IHR ,I was informed by RM pensions that I had to take both the 60 and the 65 part of my pension why could I have not left the 65 part in to claim at a later date?Oh and by the way inform the tax man you have the two pensions from RM coming in as they are not lumped together(Seperate Tax Codes)
Mud

Post by **RobertT** » 02 Aug 2018, 14:24

Did you get 'IHR with lump sum' or IHR with immediate payment of pension'?

If it was the former and you chose to take your pension aswell, then you should have been given the choice of taking just one or both of your pensions.

If it was the latter, then both NRA60 and NRA65 are paid out together with no reductions, see the relevant guide in the library section of the pensions website. Therefore by deferring you'd be depriving yourself of a probably quite a large amount of money.

Good advice about the separate pensions and tax codes.

Post by **mudmonster** » 02 Aug 2018, 18:44

Hello RobertT,Thanks for the info it was the former,IHR with lump sum and was told I had to take both 60 and 65 pension at the same time.
Mud

Post by **RobertT** » 02 Aug 2018, 19:18

Interesting.......

All the literature says it's one or the other!

If it's IHR with lump sum then you get your 34 weeks pay plus PILON, and then you can also chose to take your pension/s after you've left, but you'll be hit with the 5% per year reductions.

Or, if it's IHR with pension you get full unreduced pension, in which case if you're section B you'll get a lump sum as standard, or section C you can give up some pension to get a lump sum. But you have to take both NRA60 & NRA65.

Although it's also possible to get full early pension for health reasons after you've left RM under normal circumstances, but that's not relevant here.

So was your pension reduced for early payment?
Or are you saying you got IHR with lump sum AND a full unreduced pension.
Or was the lump sum actually from your pension rather than from IHR?

Post by **mudmonster** » 03 Aug 2018, 12:05

Hello Robert T,It was IHR with a lumpsum ,34 weeks with I think 12 week pile on /and 25% reduction on the 60 pension and 50% on the 65 pension
does that sound about right
Mud

BeamishStout · Post by **BeamishStout** » 03 Aug 2018, 17:23

mudmonster wrote:Oh and by the way inform the tax man you have the two pensions from RM coming in as they are not lumped together(Seperate Tax Codes)
Mud

If you have access to your tax account details via https://www.gov.uk/personal-tax-account you can see all sources of taxable income for a particular tax year. You will see for each of your pensions how HMRC have allocated allowances i.e. the tax coding applied to each part of your current taxable income and how much has been paid gross and net of employments that have ceased in the tax year. In my case I had 2 'employments' that have ceased in this current tax year (one of then being Royal Mail) and 3 'private pensions' of which 2 were from Royal Mail (itemised as RMPP and RMSPS). Contacted HMRC via phone today as it is only now that I am in a position to state that my future pension payments are both predictable and stable. The main reason for this being RM's review after 12 weeks into taking your pension. Also my pension supplement (and backdated amount) has now finally come into pension (in spite of leaving the business in early May).

So yes inform HMRC ASAP but perhaps more importantly create your online tax account via the above link if you have not yet done so (quite easy to do). At least that way you have all your details re pension payments for the remainder of the tax year and tax payments to hand for the time you call HMRC on the phone for queries relating to coding/tax payment. It is a good idea to do anyway irrespective of pension status.

I expect to now receive a good refund of tax at the end of August and payments/any tax deductions thereafter being stable. Otherwise another phone call to HMRC in early Septemeber. BTW ringing just after 8am is a good time to call

Post by **fly-catchers** » 03 Aug 2018, 21:43

BeamishStout wrote: The main reason for this being RM's review after 12 weeks into taking your pension. Also my pension supplement (and backdated amount) has now finally come into pension (in spite of leaving the business in early May).

Did the revision increase the pension as hoped for?

BeamishStout · Post by **BeamishStout** » 03 Aug 2018, 22:35

fly-catchers wrote:
BeamishStout wrote: The main reason for this being RM's review after 12 weeks into taking your pension. Also my pension supplement (and backdated amount) has now finally come into pension (in spite of leaving the business in early May).
Did the revision increase the pension as hoped for?

Pension/Supplement increased by £66.82/£2.54 per year compared with estimated figures given to me approx 4 weeks before taking all pensions (RMPP and RMSPS). Did not expect more TBH. Pension Supplement though was never quite as much as I anticipated (see https://www.royalmailchat.co.uk/communi ... 27&t=79099). It seems that whatever I thought the calculation was, it ended up being less than originally anticipated

Post by **RobertT** » 05 Aug 2018, 07:38

mudmonster wrote:Hello Robert T,It was IHR with a lumpsum ,34 weeks with I think 12 week pile on /and 25% reduction on the 60 pension and 50% on the 65 pension
does that sound about right
Mud

If you had IHR with lump sum, then it was your decision to also take your pension.

But if you were told you had to take both NRA60 & NRA65 at 55, then I don't think that was right! I think you should have been given the choice of whether you took 1 or both of them!

My advice is to get in touch with the trustees and see what they have to say. Their contact details are on the pensions website.