Breaking - RMPP RMSPS - update on tax- 18 1st June application for winter payment 2020, diary time line

[stephen500]

Update 19,
Tax updates - See page 10 of this thread
First RMSPS/RMPP monthly pension payments showing as pending in my bank, due on Monday 30th Nov 2020.
So I have almost come to the end of my pension journey.
A journey, which for me has gone very well with no delays at all.
For me, it appears that applying 6 months early (it should have been five months) was the key, along with returning all papers as quick as I could.
I have told RMSPS that I was very impressed with their service and next time I ring RMPP I shall tell them the same.
The next time you will hear from me is as I get my tax sorted out after leaving the business and I will let you know how I get on with the excess cash balance scheme and reclaiming any excess tax that I may pay and how easy it was to get the £750 advice money which will be due.
Good luck with your pension applications.
I will resign next week with a leaving date of 11th Dec, having taken a weeks leave owed to me.
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All Lump sums received to time.
Note Excess DBCBS is held back for a pensions pay revision from pay roll.
It should be paid within 12 weeks of pension commencement, for me that is the end of January.
75% taxed at my tax rate and 25% tax free. I say taxed at my tax rate, but as HRMC told me, RMPP may apply a week one, which means I may overpay by around £900 ie some at 40% when I shouldn't pay at that rate.
I can get that back by filling in form P53z (for small lump sums).
The next target is the end of the month, 30th November, when I should receive my first monthly payments from RMSPS and RMPP taxed.
However as soon as I can arrange my resignation and take leave I am owed, I will seek a rebate and have my tax code adjusted.
Oh and I then need to chase up the £750 I will be due for pension advice (as I will be leaving within 13 weeks of taking my pension (NRA 65 for pension advice purposes) and before the new scheme comes in.
I will prob miss out on two things, my 2nd 40 year milestone in January 2021 (service 1977 -1980, 1981 - 2020 8 month break for vol service!) and monies that go with it and my Christmas bonus.
But I guess I will get my stamps.
So, so far all is going well and to time.
Although a colleague had his delayed by a week, as they forgot to process the paperwork on their desk!
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Final confirmation letter received today from RMSPS about three weeks after the RMPP one.
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Rmpp and Rmsps all confirm all systems are go for the retirement date I set.
Once all payments, except the excess DBCBS payments have been made (this can take up to 12 weeks after Retirement date, forming part of revision of my payments to see if they are correct) I will then be tendering my resignation from RM.
So the next time you hear from me on this thread, I hope to be a happy pensioner, about to spend a whole week in the German Christmas markets.
So far every thing has gone to plan. I recomend applying 5 months before your time, I don't know if you can do that, if you are taking at your actual NRA date. But I actually appiled 6 months before I want payment and so far that has paid off, with less stress.
Having said that, I am yet to actually receive monies, so praise for RMPP and RMSPS is reserved for now...let's see.
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Breaking news : statement from RMPP confirming benefits -
- I have a confirmation of Lump sum to be paid on 2nd Nov 2020 and a 1st pension payment on the 30th Nov 2020.
It also states that 1st RMSPS payment may be paid on a different date to the 1st RMPP payment.
Interesting thing to note - My excess DBCBS (known as "Uncrystallised fund pension lump sum (UFPLS) will be paid at the "revision process",
The revision process is after payment and can take up to 12 weeks, when they check your pay details and pension payments and may any needed adjustments.
At this time the excess DBCBS is paid - For me that is an additional £7800 (appox) minus tax on 75% of that amount (around £1100 at a 20% rate)
So my final RMPP payment can be up to 12 weeks after my pension payment
Has any one else received their pension with the excess DBCBS and in reality how long did you take to get this amount.
See page 6 of this thread to see the latest letter,
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Breaking news : Final choices letters received at Darlington and Sheffield - So 1st June application, now it is 28th July - Pension Due 1st Nov 2020
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Breaking news: 27/7/20 Final choices letters sent by Royal Mail special delivery using my Christmas stamps- Now in the hands of my friends and colleagues to make sure they get to their destination!
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Breaking news: Almost final benefit choices received for both RMSPS and RMPP including DBCBS (received Fri 24/7/20)
See page 5 of this thread for details (or as soon as I can put them on there!)

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Breaking news: Just received Life time allowance forms to be returned by the 24th July 2020
See end of thread for some of the forms
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Breaking news: Well just keeping up the diary and every one in the loop.
I received this e mail from RMPP in response to the copy I had sent them of the RMSPS e mail I have had.
See latest on the thread as I can't post any more pics here (see 4th page of the thread)
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Breaking news: Received communication (e mail from) RMSPS. I will share every thing with you, as this is my diary as to my process till my pension and how it goes, along with the whole time line, so you can see what happens and when. Btw feel free to share good news stories as to your pension process. We will all feel a lot better if we know the majority receive their pension to time.

pension C.jpg

Breaking news: Spoke to pensions and they acknowledge receipt of "Anenx B" and told me I should receive my next paper work (they have to send some things off to Capita first, which I think they have done) within the next 3 weeks - So I will ring again on the 20th July)
Breaking news: letter received at pension centre today, now I wait for my NRA 65 with DBCBS quote and NRA60 forms

pension.jpg

update return of letter asking to take my NRA60 and 65 will be sent today!

there.jpg

More updates see end of thread -Ditto
Scroll to page 3 for detailed figures and slides of quotes received for RMSPS and RMPP pensions, but not incl DBCBS for now, till sent off and returned.
I started this thread with the sole intention of it being a diary of the daily (?) events of my applications and the responses I received and time lines.
It has has been skewed a little.
But diary highlights so far.
1) I applied on the 1st June 2020
2) RMSPS (capita) replied on the 10th June and RMPP on the 15th.
3) For the initial application process, you have to go through RMPP if you have not left the business.
4) Once you start the process, as an employee, you must not leave the business, until you have finished the process and are in receipt of pension.
I was told by the helpline, that would be on receipt of the "lump sum" and it appears to me to be after the pension payment date you request, but I shall be checking in Nov (again)
5) The helpline, were very helpful, with time.
So far so good.
I will send off my actual request to take my pensions and cease contributions on Sat. I will use recorded delivery.
6) My actual pensions I appear to have predicted the amounts correctly, lump sums appear to be much more than I thought.
7) Some unknowns to me, 40% of CSDB is handled by RMSPS, when I thought it was just 20%.
8) So your NRA60/65 handled by RMSPS is pension and lump sums are bigger than I thought
9) So NRA65 (RMPP) is much smaller. Bearing in mind my orginial was £3744, it became £1751.82 (Bear in mind 40% to RMSPS and 26% loss for 5 yrs 2 months early)
10) there is dispute over how much loss to take for DBCBS, taking it early. Operator 1 said I was nearly right and it was 24.8% for 5 years, operator 2, said about 0.5% per year, at around 2.5 to 3% for taking early. We will see.
As said scroll to page 3 to see the actual estimate letters I have received, compared to my illustrations.
The Illustrations are not really fit for purpose, as that is not how they are paid.
More later.
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update on Day one of my application:
It is 10:34 am on 1st June, I have been on hold with the RMPP for 11 mins so far "all of our advisors are busy on calls, please hold whilst we connect you to the next available advisor".
This is the RMPP, I haven't even rang Capita (Royal Mail statutory scheme plan yet).
This may be a long journey, I am applying 6 months before I want it and 8 months before my 60th birthday
Updates to follow:
Breaking news:
It took me 21 mins and 29 seconds from ringing RMPP to being told my quote was on the way for payment in Nov 2020.
I asked if my quote would take me up to Nov 2020, as it is some way off. The advisor, said it would, although personally I wonder if it will.
I told him I wanted to take my NRA60 and NRA65 (combined with my DBCBS)
I asked if I needed to ring Capita for the NRA65, he said no.
He then advised me the quote would take between 3 and 4 weeks.
(So I will be in contact, if I have not received it by 29 June 2020)
I got a reference number of him.
After I finished the call I tried ringing Capita (Royal Mail statutory pension scheme) to check to see if I had to apply for my NRA60 through them.
After pushing all the appropriate buttons it advised me to ring 0114 214 4545 which is the Royal Mail pension plan, so the advisor at the RMPP was correct and I only needed to contact the RMPP to get the ball rolling for all my pensions NRA60 and NRA65 (combined with my DBCBS).
For your info contact details are:
RMPP Royal mail pension plan . Pension service centre PO Box 5863 Pond Street, Sheffield, S98 6AD
0114 241 45 45
e mail Pensions.helpline@royalmail.com
RMSPS Royal Mail Statutory pension scheme (run by Capita)
Po Box 551 Darlington, DL1 9TX
0333 222 0078
e mail enquires@rmsps.co.uk
You need your DOB
NI or pension number
So my journey has started. I will update you as soon as I get my quote and have to wait until 29th June 2020 to ring back if I don't receive it by then.
The advisor thought I stood a very good chance of getting it by Nov 2020. So let's see if he is right!
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I know many of my friends on this forum and at work have struggled to get their pensions on time (NRA60 and NRA65)
On the 1st of June, I shall be applying for all my pensions (NRA60/65 and DBCBS) to be paid in Nov 2020.
I will post each letter or e mail I send or a transcript (roughly) of my phone calls.
Join me, on my physical and mental rollercoster, as I seek to navigate the application for my pension and have a look at the forms I have to fill in to get it.
Let's look at the time line as it actually is, not the 17 weeks Capita and RMPP advertise.
Let's see if I manage to get it by the end of November.
It should be plenty of notice, I wonder if I will have much of the little hair, I have at the end of the exercise.
Updates to follow on the 1st of June, keep it peeled.

[Celtic warrior]

Hope it's all smooth sailing for you.
I also hope they don't use the CV 19 as an excuse for delay, best of luck.

[Steve_claret]

Stephen, I finally got my RMSPS NRA60 PCLS paid last week and got 70% of my pension arrears (7 weeks worth) paid on the last day of April. They hold 30% of your arrears back for tax purposes. My first proper pension payment will now be paid at the end of May along with the remainder of the 30% not taken by the taxman. I know for a fact that the instruction from our PSC to start the NRA60 ball rolling was sent to Capita on November 19th so from then until I got my lump sum paid was 23 weeks in total. I hope things go smoother for you than they have been for me as I was literally tearing my hair out with Capita at times especially when they fob you off on the phone or even totally ignore your emails. It has been a thoroughly unpleasant experience and one that has been extremely stressful at times.

[TheStrangler]

Applied mid April.
Just sent id to Psc (you don't need to physically post this).
Now they contact capita so I guess this is where the fun begins..
My payment date is mid June but the chances of that seem minimal from what others are saying on here.
Only difference for me is I won't get too concerned if it takes a bit longer as I originally applied thinking I'd be lucky to see it by Christmas!

[stephen500]

Stephen, I finally got my RMSPS NRA60 PCLS paid last week and got 70% of my pension arrears (7 weeks worth) paid on the last day of April. They hold 30% of your arrears back for tax purposes. My first proper pension payment will now be paid at the end of May along with the remainder of the 30% not taken by the taxman. I know for a fact that the instruction from our PSC to start the NRA60 ball rolling was sent to Capita on November 19th so from then until I got my lump sum paid was 23 weeks in total. I hope things go smoother for you than they have been for me as I was literally tearing my hair out with Capita at times especially when they fob you off on the phone or even totally ignore your emails. It has been a thoroughly unpleasant experience and one that has been extremely stressful at times.

I will be applying 21 weeks before I want it. So I might just make it.

[Steve_claret]

I believe that I was one of the joint members who was caught up in the handover of RMSPS work from the PSC to Capita in November 2019. Hopefully this backlog has now been cleared but with CV19 who knows what state they are in at the moment.

[stephen500]

Update on Day one of my application:
It is 10:34 am on 1st June, I have been on hold with the RMPP for 11 mins so far "all of our advisors are busy on calls, please hold whilst we connect you to the next available advisor".
This is the RMPP, I haven't even rang Capita (Royal Mail statutory scheme plan yet).
This may be a long journey, I am applying 6 months before I want it and 8 months before my 60th birthday
Updates to follow:
Breaking news:
It took me 21 mins and 29 seconds from ringing RMPP to being told my quote was on the way for payment in Nov 2020.
I asked if my quote would take me up to Nov 2020, as it is some way off. The advisor, said it would, although personally I wonder if it will.
I told him I wanted to take my NRA60 and NRA65 (combined with my DBCBS)
I asked if I needed to ring Capita for the NRA65, he said no.
He then advised me the quote would take between 3 and 4 weeks.
(So I will be in contact, if I have not received it by 29 June 2020)
I got a reference number of him.
After I finished the call I tried ringing Capita (Royal Mail statutory pension scheme) to check to see if I had to apply for my NRA60 through them.
After pushing all the appropriate buttons it advised me to ring 0114 214 4545 which is the Royal Mail pension plan, so the advisor at the RMPP was correct and I only needed to contact the RMPP to get the ball rolling for all my pensions NRA60 and NRA65 (combined with my DBCBS).
For your info contact details are:
RMPP Royal mail pension plan . Pension service centre PO Box 5863 Pond Street, Sheffield, S98 6AD
0114 241 45 45
e mail Pensions.helpline@royalmail.com
RMSPS Royal Mail Statutory pension scheme (run by Capita)
Po Box 551 Darlington, DL1 9TX
0333 222 0078
e mail enquires@rmsps.co.uk
You need your DOB
NI or pension number
So my journey has started. I will update you as soon as I get my quote and have to wait until 29th June 2020 to ring back if I don't receive it by then.
The advisor thought I stood a very good chance of getting it by Nov 2020. So let's see if he is right!

[TheStrangler]

Received paperwork from capita last week, believe it or not before the rmpp paperwork which arrived today!
One thing I can tell anyone interested is the DBCBS fund was just over 10k and no mention I can find of any reductions.
From the options at first glance, 2a would appear the best in terms of maxing the lump sums tax free?
One thing I will have to explore is why the pension supplement figures are zero in all options in rmpp figures.
I would of thought as capita figures listed these separately for both nra60 and 65 that there would be similar figures also on the rmpp figures for NRA60 and 65!
Only thing I can think of is pension supplement is only applicable up to 2012 (?) which is the part capita runs?
Anyone have any ideas on this?
It also mentions "uncrystallised fund pension lump sum" (for dbcbs) as a separate option though as that involves tax I can't see how that could be a good choice?
Mentions that you can use the remaining 75% of the dbcbs to buy an annuity, though from the little I've heard these are not a good option at present?

[stephen500]

Received paperwork from capita last week, believe it or not before the rmpp paperwork which arrived today!
One thing I can tell anyone interested is the DBCBS fund was just over 10k and no mention I can find of any reductions.
From the options at first glance, 2a would appear the best in terms of maxing the lump sums tax free?
One thing I will have to explore is why the pension supplement figures are zero in all options in rmpp figures.
I would of thought as capita figures listed these separately for both nra60 and 65 that there would be similar figures also on the rmpp figures for NRA60 and 65!
Only thing I can think of is either pension supplement is only applicable up to 2012 (?) which is the part capita runs?
Anyone have any ideas on this?
It also mentions "uncrystallised fund pension lump sum" as a separate option though as that involves tax I can't see how that could be a good choice?
Mentions that you can use the remaining 75% of the dbcbs to buy an annuity, though from the little I've heard these are not a good option at present?

This is a friends options, he chose option 2a for NRA65, which to me appears the best, option 3 and 3B for me I would be mad to take.
I think as I am section B there is no pension supp for me or my friend.
It appears you have to pay tax on the EXCESS DBCBS figure at your tax rate (mine will be 20%)

final friends option NRA65.jpg

[TheStrangler]

Thanks Stephen, as your plan (from what I remember) is based on now to state pension age 2a would appear to be best for both of us although I'm in pension plan C.
I'd be amazed if you didn't get yours in time for November!
I applied for mine thinking I'd have 5 or 6 month wait based on people's experiences on here.
Only difference I can think is you have avcs? Not that it's by any means an excuse for such a long wait (potentially).

[stephen500]

Thanks Stephen, as your plan (from what I remember) is based on now to state pension age 2a would appear to be best for both of us although I'm in pension plan C.
I'd be amazed if you didn't get yours in time for November!
I applied for mine thinking I'd have 5 or 6 month wait based on people's experiences on here.
Only difference I can think is you have avcs? Not that it's by any means an excuse for such a long wait (potentially).

Glad I don't have any avc's, another friend who had those had to wait 2 months past his NRA 65 to get his pension, all to do with them disinvesting them ready for payment (I think).
Due payment in Feb, got it in May.
As said I don't have any avcs.
Trick for me for November payment is timing, I don't want it before or after! Spot on November is my request!

[TheStrangler]

Yes I can understand that, I just didn't want to risk any more drama!
Have just rang rmpp and apparently (for those interested) "the bulk of pension supplement is paid by capita" so expect nothing, or very little, from rmpp should you leave the company!

[david3595]

Good luck Stephen 500 I hope it all goes smoothly and on time with your Pensions. I received my AVC’s along with my lump sum on same day even though I was originally told they would not be paid until 3 weeks later. Possibly they got fed up with me ringing non stop and emailing Jon Lewis as it was delayed and thought get rid of him by paying AVC upfront. Although I took my NRA60 at 55 and continue working I was quoted a Pension Supplement payable immediately of approximately £1500 per annum until I reach state pension age of 67 if I was to leave the Business .

[Steve_claret]

This is a friends options, he chose option 2a for NRA65, which to me appears the best, option 3 and 3B for me I would be mad to take.
I think as I am section B there is no pension supp for me or my friend.
It appears you have to pay tax on the EXCESS DBCBS figure at your tax rate (mine will be 20%)

Just curious as to why you have discounted option 3B Stephen? Looks like the better use of the DBCBS to fund all of the lumpsum and increase the annual pension. Opting for this would also mean there would be no excess DBCBS to pay 20% tax on as well. I know pensions are a personal thing but I think that's the one I would have gone for in that example.

[stephen500]

This is a friends options, he chose option 2a for NRA65, which to me appears the best, option 3 and 3B for me I would be mad to take.
I think as I am section B there is no pension supp for me or my friend.
It appears you have to pay tax on the EXCESS DBCBS figure at your tax rate (mine will be 20%)

Just curious as to why you have discounted option 3B Stephen? Looks like the better use of the DBCBS to fund all of the lumpsum and increase the annual pension. Opting for this would also mean there would be no excess DBCBS to pay 20% tax on as well. I know pensions are a personal thing but I think that's the one I would have gone for in that example.

Because it would take 27 years to make up the loss of Lump sum.
From the example I showed (a friend)
Option 2 B
tax free lump sum incl DBCBS £16005.60
Excess DBCBS after 20% tax £2968
Total lump sums £18973.60
Pension £2400.84
option 3B
Tax free lump sum DBCBS £12513.11
Pension £2633.93
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So take £2400.84 from £2633.93 shows an annual diff of £233.09
The difference in lump sums means you are £6460.49 worse off (£18973.60 -£12513.11)
So divide £6460.49 by £233.09 means you have to live for 27 years to make up for the loss of lump sum.
Robert T I think agreed with me a loss of nearly 30 times is very poor.
On my friends quote, option 2 b =£742 tax and for that he is £1798 better off if he lives for 20 years (£233.09 x 20 =£4661.80 ) Extra lump sum 2b v 3B £6460.49 minus £4661.50 = better off by £1798.