DC pension and avc's

[ihatedogs]

If I start paying avc's on top of my current pension payments do I get tax relief as I do with my dc payments?

[heapsy]

Yes. And you also get PSE up to certain limits.

[ihatedogs]

thank you. done a bit more research into it and I`m going to pull out of the partnership/matching share scheme and up my pension contributions to match the 10% RM put in.

[Dindin]

thank you. done a bit more research into it and I`m going to pull out of the partnership/matching share scheme and up my pension contributions to match the 10% RM put in.

how do you sign up to Avcs?

[ihatedogs]

thank you. done a bit more research into it and I`m going to pull out of the partnership/matching share scheme and up my pension contributions to match the 10% RM put in.

how do you sign up to Avcs?

https://www.scottishwidows.co.uk/save/royalmaildcplan/" onclick="window.open(this.href);return false;

That's the website for the DC pension mate, you can mess about with calculations on there to see how increasing your contributions will affect your pension.
08000928263 is the DC plan phone number where they will take instructions over the phone.

[RobertT]

And if you're in the RMPP and currently paying into the DBCBS, the website to look at is:
https://www.royalmailpensionplan.co.uk/ ... n-benefits" onclick="window.open(this.href);return false;

[Dindin]

thank you. done a bit more research into it and I`m going to pull out of the partnership/matching share scheme and up my pension contributions to match the 10% RM put in.

how do you sign up to Avcs?

thanks dogs

https://www.scottishwidows.co.uk/save/royalmaildcplan/" onclick="window.open(this.href);return false;

That's the website for the DC pension mate, you can mess about with calculations on there to see how increasing your contributions will affect your pension.
08000928263 is the DC plan phone number where they will take instructions over the phone.

[Dindin]

And if you're in the RMPP and currently paying into the DBCBS, the website to look at is: thanks Robert T
https://www.royalmailpensionplan.co.uk/ ... n-benefits" onclick="window.open(this.href);return false;

[Dindin]

And if you're in the RMPP and currently paying into the DBCBS, the website to look at is:
https://www.royalmailpensionplan.co.uk/ ... n-benefits" onclick="window.open(this.href);return false;

Thanks Robert T

[Steve_claret]

And if you're in the RMPP and currently paying into the DBCBS, the website to look at is:
https://www.royalmailpensionplan.co.uk/ ... n-benefits" onclick="window.open(this.href);return false;

Thanks Robert.
Quick question - I am due to receive my NRA60 pension in March (if Capita get their finger out) but carrying on working and so was thinking about starting a flexiplan AVC to build up my 65 pension lump sum. I am assuming that doing this will attract PSE and therefore tax relief? Not looking forward to paying basic rate tax on the monthly pension payments but was hoping that by doing this it will soften the blow a little. Thanks.

[RobertT]

And if you're in the RMPP and currently paying into the DBCBS, the website to look at is:
https://www.royalmailpensionplan.co.uk/ ... n-benefits" onclick="window.open(this.href);return false;

Thanks Robert.
Quick question - I am due to receive my NRA60 pension in March (if Capita get their finger out) but carrying on working and so was thinking about starting a flexiplan AVC to build up my 65 pension lump sum. I am assuming that doing this will attract PSE and therefore tax relief? Not looking forward to paying basic rate tax on the monthly pension payments but was hoping that by doing this it will soften the blow a little. Thanks.

You get tax relief on all pension payments, which means that each £1 gross only actually costs you £0.80. But RM employees also have the benefit of salary sacrifice(PSE), which is effectively National Insurance relief. Meaning another £0.12 per £1 is paid by the government instead of you.

So in total each £1 only actually costs you £0.68, and your money is increasing by 47% before any interest or investment growth is added on. You'd be a fool to not take advantage!

If you're in section C then I'd pay into Bonusplan to get an additional contribution from RM aswell as Flexiplan. It all adds up!

Your plan is a good one! You might be paying tax with one hand but you'll be getting some back with the other.

[Steve_claret]

Thanks again Robert.
I'm section B so I believe only Flexiplan is open to me.
I need to ring the PSE people and check how much I can pay in without falling out of PSE.

[RobertT]

I'm not sure whether they'll give you that sort of advice or not, but there is an easy way of working out the maximum to stay within PSE limits:

Basic RM hourly pay – hourly minimum wage x hours worked.

So for a full timer, that would look something like:

11.62 – 8.21 = 3.41 x 38 = 129.58

That's the gross amount, so your take home pay would only reduce by about £88. Although personally I wouldn't go above around £120(gross) / £81(net) to be on the safe side.

[mrcurve]

The minimum wage will change to £8.72 on the 1st April, so worth checking if your quite close to the maximum within pse

[Steve_claret]

Good advice as usual. Thanks guys.