Medical retirement

TheStrangler · Post by **TheStrangler** » 25 Aug 2019, 11:27

If you are medically retired does that have any effect on your pension benefits (positive or negative)? I haven't touched my pension as yet.
Is there a formula for how much lump sum you'd get.

Post by **RobertT** » 25 Aug 2019, 11:42

Assuming you're in the RMPP and have NRA60 & NRA65 benefits, the way you work out the maximum lump sum is always the same – it's 25% of your 'total pot value'.
Take a look at page 12 of your plan guide for more info, it's available to view online here.
When you apply to take your pension, you will receive exact figures and a choice of options.

The fact you might have had a pay off via IHR (or VR) is irrelevant.

Yamr1 · Post by **Yamr1** » 25 Aug 2019, 12:37

Robert t
Its a daft question cause everyone has a diffrent amout of service,
But if you did 40 years in royalmail what would your average pot be....

Post by **RobertT** » 25 Aug 2019, 13:28

Yamr1 wrote:Robert t
Its a daft question cause everyone has a diffrent amout of service,
But if you did 40 years in royalmail what would your average pot be....

You've answered your own question – everyone is different!

Some might be full time for their whole service, while others may have periods of part time work.
Some will have pensionable allowances, others won't.
Some will have all their service in the final salary pension, while some will have a mixture of both FS and CARE.
Some will be paying into the DBCBS, others won't.
Some will be paying into the RMDCP and are just building up a pot of money, with options. The value of which will vary depending on investment choices.
Some might have taken their pension early and are no longer paying anything in at all.

In practice it doesn't matter what anybody else is doing or what the average value might be, because it's all relative.
Just concentrate on making the most of what you've got.