Change to standard level rmdcp member

mrtell · Post by **mrtell** » 06 Mar 2019, 20:24

Not very good with understanding pensions.
I was a full-time postman but decided to buy down my hours to 24 and then decided to also take both my pensions, I have just turned 58.
I was then informed that I would automatically be enrolled into another pension paying 3%and the business paying 2%, now I am told it's going to rise to me paying 5% and the business paying 3%.
But I am informed I am able to change to a standard level RMDCP member where I could pay 4% and the business pays 8%.
Do I take that literally,
I change from paying 5% and they pay 3% total 8%...to me paying 4% and them paying 8% total 12% or am I missing something.
If so sounds like a no brained.
Thanks in anticipation

Post by **Navalron** » 07 Mar 2019, 03:23

The first one, I think, is the new deal pension that all employers must offer staff earning over £11,770 per year and that's why most employ part timers so the staff don't qualify. But RM are quite generous compared to most private employers out there. I'm lucky as I'm in the civil service pension scheme which is 20% of my salary and although not as generous as it once was I get an add on from disability from the Royal Navy also plus £229 per month on top of my salary up to pension age of 67. Yes it is a bit of a nightmare but there is plenty of information on line but it's just getting your head around the different schemes. I've also got a small one from Hoover plc which was a DB scheme and that's just going into the pension protection scheme and I've been given the option to take 75% or there's about now. Minefield doesn't come into it, oh and my Royal Navy bump up when I reach 60. Or is it 65? Maybe TBT could let me know as he was a grill cream boy, lol,

Post by **RobertT** » 07 Mar 2019, 04:11

mrtell wrote:Not very good with understanding pensions.
I was a full-time postman but decided to buy down my hours to 24 and then decided to also take both my pensions, I have just turned 58.
I was then informed that I would automatically be enrolled into another pension paying 3%and the business paying 2%, now I am told it's going to rise to me paying 5% and the business paying 3%.
But I am informed I am able to change to a standard level RMDCP member where I could pay 4% and the business pays 8%.
Do I take that literally,
I change from paying 5% and they pay 3% total 8%...to me paying 4% and them paying 8% total 12% or am I missing something.
If so sounds like a no brained.
Thanks in anticipation

The current rates for those auto-enrolled into the RMDCP are:
Employee: 3% / Employer: 2%

From 6th April 2019 those are going up to:
Employee: 5% / Employer: 3%

You can also choose to increase contributions up to a maximum of:
Employee: 6% / Employer: 10%

See these links for further info:
Improvements made from April 2018
RMDCP plan guide

The contributions into the RMDCP are based on basic pay for full timers, and basic pay plus any overtime up to full time hours for part timers. See the glossary section of the plan guide for more info.

There is no earnings limit for the RMDCP as Navalron suggests!

mrtell · Post by **mrtell** » 07 Mar 2019, 08:14

Thanks for the reply.
So to clarify,
it would be beneficial for me to change to standard level RMDCP member.
Only paying 4% and business paying 8% rather than me paying 5% and business paying 3%.
Justs sounds to obvious to be honest lol.
Thanks

broughts · Post by **broughts** » 07 Mar 2019, 09:39

How do u put up your pension to 6% in April?

Post by **RobertT** » 07 Mar 2019, 14:58

mrtell wrote:Thanks for the reply.
So to clarify,
it would be beneficial for me to change to standard level RMDCP member.
Only paying 4% and business paying 8% rather than me paying 5% and business paying 3%.
Justs sounds to obvious to be honest lol.
Thanks

Unless I'm missing something, it is an obvious thing to do.

Although I was under the impression that RMDCP members who weren't already a standard member and paying the maximum 6% / 10%, were automatically put on that rate after 12 months, which would be even better.

It would then up to them to choose a lower rate if they wanted to.

The 'improvements made from 2018' link I provided, seems to back that up.

Post by **RobertT** » 07 Mar 2019, 14:59

broughts wrote:How do u put up your pension to 6% in April?

Assuming you're in the RMDCP and not already paying in the maximum employee rate of 6% and you fit the qualifying criteria, then you can increase it at any time.
See the links I provided above for more info.

mrtell · Post by **mrtell** » 07 Mar 2019, 19:00

Thanks for the reply, I did follow the link and it does say what you said,
but for some reason I have been told if I want to change to a standard member I need to fill in a "choices form" from the RMDCP website at Zurich.co.uk.
Thanks again

Post by **Navalron** » 09 Mar 2019, 14:36

RobertT wrote:
mrtell wrote:Not very good with understanding pensions.
I was a full-time postman but decided to buy down my hours to 24 and then decided to also take both my pensions, I have just turned 58.
I was then informed that I would automatically be enrolled into another pension paying 3%and the business paying 2%, now I am told it's going to rise to me paying 5% and the business paying 3%.
But I am informed I am able to change to a standard level RMDCP member where I could pay 4% and the business pays 8%.
Do I take that literally,
I change from paying 5% and they pay 3% total 8%...to me paying 4% and them paying 8% total 12% or am I missing something.
If so sounds like a no brained.
Thanks in anticipation
The current rates for those auto-enrolled into the RMDCP are:
Employee: 3% / Employer: 2%

From 6th April 2019 those are going up to:
Employee: 5% / Employer: 3%

You can also choose to increase contributions up to a maximum of:
Employee: 6% / Employer: 10%

See these links for further info:
Improvements made from April 2018
RMDCP plan guide

The contributions into the RMDCP are based on basic pay for full timers, and basic pay plus any overtime up to full time hours for part timers. See the glossary section of the plan guide for more info.

There is no earnings limit for the RMDCP as Navalron suggests!

I wasn't talking about RM pensions. I'm talking about the new workplace pension that all employers must have in place.

Post by **RobertT** » 09 Mar 2019, 16:17

Navalron wrote:
RobertT wrote: There is no earnings limit for the RMDCP as Navalron suggests!
I wasn't talking about RM pensions. I'm talking about the new workplace pension that all employers must have in place.

I realise that! However your post was no help in answering the OP's query.

The employee earning limit for a company to offer them an auto-enrolment pension is actually £10,000 per year.

RM do offer an auto-enrolment pension – it's the 'entry level' of the RMDCP! But they don't enforce the £10k earnings rule.