Pension increase...Is this right ?

Hawkey99 · Post by **Hawkey99** » 19 Apr 2020, 19:37

I took my NRA 60 in October last year. I am a section C member.

The Royal Mail Pension Plan part of my pension was £371.20 and the notification says it has increased to £375.65. Does that seem correct ??

Obviously this is a very small amount but my main concern is if its wrong my other part of my pension, the Royal Mail Stuatory Pension Scheme might also be wrong. I believe this one is run by Capita so ofcourse I haven't been advised of any annual increase.

Do the above figures look right and are they not linked to RPI as I took my pension mid year.?

Has anybody received anything regarding pension increase in their RMSPS yet ?

Many thanks

FAB · Post by **FAB** » 20 Apr 2020, 08:14

The increase seems correct. The full RPI increase this year is 2.4%. But as you don't have a full year of receiving the pension it is pro rata. Which for roughly 5 months is 1.2%. Which gives you your figure. The RMSPS letter is due either late April or May according to the Capita web site. But if you adjust your existing RMSPS amount by 1.2% will give you a good idea of what you should get.

Hawkey99 · Post by **Hawkey99** » 20 Apr 2020, 19:15

Thank you very much Fab.

BeamishStout · Post by **BeamishStout** » 21 Apr 2020, 09:14

Hawkey99 wrote: Has anybody received anything regarding pension increase in their RMSPS yet ?

Many thanks

No but received notification re RMPP at end of March/Early April (as is usually the case). Judging by previous years, RMSPS sent me the notification probably at the end of April when the indexation was applied (probably on the back of payslip with increased amount if I recall). I didn't expect them to be as efficient as Pond Street and had to work out what the new RMSPS amount is likely to be for HMRC purposes for this tax year. So nothing changes there. Hopefully I have got the calculation right so as to avoid any income tax liability for 2020-2021 tax year.

As I am coming up to my 3rd year on my RM pensions, the increase stated by RMPP was in line with the 2.4% inflation figure used in the calculation so nothing unexpected in the figures I have received to date.

Post by **windermeredave** » 21 Apr 2020, 18:02

The government run scheme should rise by Septembers inflation figure which was 1.7%.

Post by **RobertT** » 21 Apr 2020, 18:13

windermeredave wrote:The government run scheme should rise by Septembers inflation figure which was 1.7%.

Sections A/B pensions increase by CPI when in payment, which was 1.7%.
Section C increases by RPI, which was 2.4%, so FAB's maths look about right to me.