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Pension Opting In
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Skinns21
- Posts: 1
- Joined: 21 Aug 2018, 15:28
- Gender: Male
Pension Opting In
If I wish to opt into the Royal Mail Pension Scheme can you tell me what the process is and how long will it take?
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RobertT
- EX ROYAL MAIL
- Posts: 6645
- Joined: 09 Sep 2007, 14:26
- Gender: Male
Pension Opting In
Assuming you're not already in any other RM pension scheme,you will be joining the RM Defined Contribution Plan. I haven't got a clue how long it takes to be honest, perhaps someone else does? But I wouldn't have thought it would take more than a few weeks.
All the info you need about it will be on the RMDCP website.
The general rule of company pensions is always join up, and always pay in at least as much as it takes to get the maximum employer contributions, otherwise you're giving away a lot of free money.
All pensions qualify for tax relief, which means each £100 gross going into your pension, only actually costs you £80 with the government giving you another £20.
But some including RM, also run Salary Sacrifice arrangements, which means you also get 'National Insurance relief'. So a £100 gross contribution only costs £68. RM call it PSE.
Plus you have RM contributions too – upto a maximum of 10% of pensionable pay.
All the info you need about it will be on the RMDCP website.
The general rule of company pensions is always join up, and always pay in at least as much as it takes to get the maximum employer contributions, otherwise you're giving away a lot of free money.
All pensions qualify for tax relief, which means each £100 gross going into your pension, only actually costs you £80 with the government giving you another £20.
But some including RM, also run Salary Sacrifice arrangements, which means you also get 'National Insurance relief'. So a £100 gross contribution only costs £68. RM call it PSE.
Plus you have RM contributions too – upto a maximum of 10% of pensionable pay.
Links to all RM pension related websites are here