Pension quote

[TheStrangler]

When the pension quote gives you figures such as the large pension & no lump sum, then the max lump sum and reduced pension, do these figures include all of the various pension schemes I'm in eg. final salary, etc.. ? Been in rm 25 years.

[RobertT]

I assume you've been given figures for taking both your NRA60 and NRA65 benefits?

In which case your NRA60 includes all pension accrued up to 31st March 2010 and your NRA65 is everything from 1st April 2010 to 31st March 2018.
You also have the DBCBS, which will be included in your NRA65 benefits, but may not be actually on your quote?

A 5% per year reduction will have been applied for each year you take your benefits before NRA.

[TheStrangler]

Yes that's correct Robert. nra 60, nra 65 and the total of the two combined.
Still a bit of a mystery about the pension supplement (mentioned elsewhere) as to whether its paid to anyone aged 55+ or if you have to be 60.
I just thought you had to be 55+ and have left the business but apparently someone was told otherwise when they phoned the pension helpline!
They don't provide figure for this on the pension quote either , not sure why that's the case..

[mr hil.]

Pension supplement
An additional amount of pension
calculated as follows:
• For your pensionable service up to
and including 31 March 2008, 1/60th of
the lower earnings deduction over the
period during which final pensionable
pay is calculated (with an additional
pro-rata amount for part years)

• For your pensionable service on
and after 1 April 2008, the sum of the
supplement blocks that have built up
for your pensionable service between
1 April 2008 and 31 March 2018. The
supplement block for each Plan Year
is calculated at the renewal date as
1/60th of the lower earnings deduction
(reduced appropriately for any period
that you worked part time or if you had
any periods of non-reckonable service
during the Plan Year concerned).

So it looks like you get 1/60th of the LED amount, per year of service up to 2018....ish

Also online it states...

If you joined the Plan on or after 1 April 1987, you’ll get an extra amount of pension each year. This is called the Pension Supplement and you will receive it if you take your Age60 or Age65 benefits before you reach your State Pension age. It is only paid if you are not employed by Royal Mail Group and it will stop when you reach your State Pension age. See the ‘Guide to your pension benefits’ for more details.

See here for a table of LEL values from the GOVhttps://assets.publishing.service.gov.u ... ble-a4.pdf

[RobertT]

The pension supplement applies to section C which has been in existence since 1987, although it was originally called POPS. The definition of how it's worked out has featured in the various plan guides we've been sent over the years, so how it's worked out shouldn't really be a major surprise to anyone.

The LED did used to rise each year along with the government figure, but that link was removed by RM around 1999/2000 if I remember correctly(I have some paperwork somewhere which will confirm). So the above link is irrelevant as far as RM pensions are concerned.

The governments LEL is the amount you have to earn each week before your pay is assessed for National Insurance purposes, so it can affect how much state pension you accrue for example. That figure is currently £118 per week, although you have to earn £166 before you actually start paying NIC's.