ANNOUNCEMENT : ALL OF ROYAL MAIL'S EMPLOYMENT POLICIES (AGREEMENTS) AT A GLANCE (Updated 2021)... HERE
ANNOUNCEMENT : PLEASE BE AWARE WE ARE NOT ON FACEBOOK AT ALL!
Commutation
-
deano12
- Posts: 16
- Joined: 11 Sep 2016, 22:55
- Gender: Male
Commutation
Does anyone know how much £1 gets in commutation? Thanks
-
RobertT
- EX ROYAL MAIL
- Posts: 6645
- Joined: 09 Sep 2007, 14:26
- Gender: Male
Commutation
I always thought the commutation rate was 1:20. So for each £1 of yearly pension you give up, you'll get £20 in tax free lump sum, up to a maximum of 25% of the total value of your 'pot'.
But some posts on these forums would suggest it's nearer 1:22.
Also, I seem to remember reading a section A/B plan guide a number of years ago, which suggested if you wanted to reduce your standard lump sum to get more pension, the rate was something like 24:1.
Anyone who's had a pension estimate, should be able to work out the commutation rate from the figures provided quite easily.
But some posts on these forums would suggest it's nearer 1:22.
Also, I seem to remember reading a section A/B plan guide a number of years ago, which suggested if you wanted to reduce your standard lump sum to get more pension, the rate was something like 24:1.
Anyone who's had a pension estimate, should be able to work out the commutation rate from the figures provided quite easily.
Links to all RM pension related websites are here
-
deano12
- Posts: 16
- Joined: 11 Sep 2016, 22:55
- Gender: Male
Commutation
Yeah. After much digging around l found a statement stating £22.04 for every pound. My max is £42.000, plus £12,212 for the trivial commutation from the RMPP