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

[stephen500]

My Life time allowance signed form was received at the Pension service centre this morning.
So to recap for the time line.
Application made 1st June 2020.
Received estimates from RMSPS and RMPP (without DBCBS quote yet)
Signed off that I wanted both NRA 60 and 65 pensions.
Stage 2 - received LTA form to sign.
Returned on Sat 11th July 2020.
Received at pension centre - 13th July

signed for LTA return letter.jpg

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I am guessing the next stage is to give me options for my RMPP pension with DBCBS - I think there are 6 options.
Then I return those and they get in contact with RMSPS and both send me more forms and RMSPS require identification documents (originals)
This part is an educated guess.
I will keep you up to date.

[Steve_claret]

I am guessing the next stage is to give me options for my RMPP pension with DBCBS - I think there are 6 options.
Then I return those and they get in contact with RMSPS and both send me more forms and RMSPS require identification documents (originals)
This part is an educated guess.
I will keep you up to date.

Stephen, I didn't have to send any form of ID to RMSPS (Capita). They can do all of their checks electronically now.
The only form of ID I had to submit was a photocopy of my passport to the RMPP (PSC).
Now that you have returned the LTA form to the PSC you should next receive the RMPP option pack.
Return that swiftly back to the PSC as Capita will not send the RMSPS option pack until the PSC contact them to say they have received your RMPP options.
You appear to be on the home straight now.

[stephen500]

I am guessing the next stage is to give me options for my RMPP pension with DBCBS - I think there are 6 options.
Then I return those and they get in contact with RMSPS and both send me more forms and RMSPS require identification documents (originals)
This part is an educated guess.
I will keep you up to date.

Stephen, I didn't have to send any form of ID to RMSPS (Capita). They can do all of their checks electronically now.
The only form of ID I had to submit was a photocopy of my passport to the RMPP (PSC).
Now that you have returned the LTA form to the PSC you should next receive the RMPP option pack.
Return that swiftly back to the PSC as Capita will not send the RMSPS option pack until the PSC contact them to say they have received your RMPP options.
You appear to be on the home straight now.

Steve, I hope that the method you cite (electronic) is available.
Although my colleague at work has just had to send his original documents off to RMSPS and certficates to RMPP.
Birth/marriage/divorces certificate along with a passport or driving license?

[david3595]

I did not need to send any ID to RMSPS. Only a copy of my driving license to RMPP

[TheStrangler]

I did not need to send any ID to RMSPS. Only a copy of my driving license to RMPP

Same here, capita all done electronically.

[TheStrangler]

Today received life time allowance forms.
Note that when the form says "other" pensions, rather than just the RMPP, it DOES mean the RMSPS and you have to include the amounts, provided by Capita (cabinet office) sent with the NRA 60.
You also have to tell them about any "trivial" pensions you have.
All of this should not take you above your LTA for pensions.
(Diary)

After reading your quote above I emailed rmpp (pension activations).
I didn't include details of the rmsps on my LTA form as the wording suggested to me any pensions other than rm and I don't have any.
I was told "there is no requirement to include your RMSPS details on your completed LTA form".
Appears one of us has been mis-informed!

[stephen500]

Today received life time allowance forms.
Note that when the form says "other" pensions, rather than just the RMPP, it DOES mean the RMSPS and you have to include the amounts, provided by Capita (cabinet office) sent with the NRA 60.
You also have to tell them about any "trivial" pensions you have.
All of this should not take you above your LTA for pensions.
(Diary)

After reading your quote above I emailed rmpp (pension activations).
I didn't include details of the rmsps on my LTA form as the wording suggested to me any pensions other than rm and I don't have any.
I was told "there is no requirement to include your RMSPS details on your completed LTA form".
Appears one of us has been mis-informed!

Sorry but I just rang RMPP just now (08:30 14/7/2020) and the customer service advisor told me, you were mis-informed and I was correct that the RMSPS figures must be declared as it is a completely different company and they have no access any more to their records. So you may want to ring up again and double check.

[TheStrangler]

Ok thanks I'll do that.

[stephen500]

Friday 24/7/20 I have received my almost final RMSPS and RMPP benefits choice letter with figures including the DBCBS.
I have to return my RMPP by 14th August 2020 and my RMSPS as soon as possible.
According to the letter:
Failure to return the forms within 8 weeks of that date, would see my pension suspended and may lead to paying tax on the lump sum, if I had not taken the benefits within 12 months of that date.
Here is the RMPP (Royal Mail pension plan) first (NRA65) 6 years worth. Next I will post the RMSPS abd DBCBS (NRA60 and Part NRA65 4 years worth)

RMPP pension with DBCBS 1.jpg

RMPP pension with DBCBS 2.jpg

RMPP pension with DBCBS 3.jpg

See next page for RMPP figures with DBCBS

[stephen500]

RMPP figures with DBCBS

RMPP pension with DBCBS 4.jpg

[stephen500]

RMSPS final figures

Rmsps retirement B 1.jpg

Rmsps retirement B 2.jpg

Rmsps retirement B 3.jpg

Continued

[stephen500]

RMSPS continued

Rmsps retirement B 5.jpg

Rmsps retirement B 4.jpg

I was told by RMSPS that in filling out my LTA I did not have to put down my RMPP pension being drawn on the same day, as they have access to those figures.
Whereas for RMPP I had to fill in the RMSPS figures as they don't have access to their data base.
Plus for RMSPS I have to fill in a banking mandate, because the only thing they don't have access to is the banking data of RMPP members!
But RMPP do not need my banking details as long as they pay into the account my wages are paid into.
Plus RMSPS do not require at this stage (and may not require them at all) any certificates, birth or marriage, as they access the electoral register and other data bases to confirm identities.
Right figures: next page, with explainations

[stephen500]

Figures RMSPS and RMPP

Rmsps retirement B 3.jpg

Rmsps retirement B 5.jpg

RMPP pension with DBCBS 4.jpg

RMSPS For NRA 60 I am taking option 2 - Max LS with reduced pension of around 15%
For NRA65 I am also taking option 2 - Max LS with reduction of around 26% (of yearly pension) for taking it five years and two months early.
RMPP (NRA 65)I am taking option 2A (which I consider to be the most tax efficent way of taking my DBCBS)
The NRA65 is reduced by 26% for five years and 2 months early payment.
The reduction on my DBCBS appears to be just around 3% per year or 8% in total for 2 years and 7 months.
-----------------------------------------
Yearly pensions: RMSPS NRA 60 £9577.33
RMSPS NRA 65 £519.54
RMPP NRA 65 £1751.82 (option 2A) unreduced using DBCBS to allow max use of DBCBS
Total yearly pensions: £11848.69
Lump sums and DBCBS
RMSPS NRA 60 £63,848.87
RMSPS NRA65 £3,463.59
RMPP NRA 65 £5767.35
RMPP NRA65 £5911.44 (This is from DBCBS to top up to max LS without reducing yearly pension)
RMPP NRA65 £7865.37 Excess DBCBS, know as "Uncrystallised funds pension lump sum (UFPLS)" 25% is tax free and 75% is taxed at your tax rate
Total LS £86,856.82
Minus tax £1179 20% of 75% of £7865.37
Total LS £85,677.82
My provisonal DBCBS fund is worth £13776.81 after early payment for taking 5 years and 2 months early.
For 2018 I earned £5750 DBCBS
2019 £5750 DBCBS
2020 £3441 DBCBS 7 months Apr till end of Oct
Total DBCBS £14941
If I take £13776 from £14941 it comes to around 1.4% reduction for 5 years and 2 months, that is presuming that my DBCBS monies have been taken to Nov 2020 and nothing more is to be added? Making it even a smaller reduction?
Which means the lump sums are around £11,000 more than I estimated. My yearly pensions were right, almost to the penny.
The DBCBS threw me out for the Lump sums.

[RobertT]

Have you added on the 3.7% increase on the first years worth of DBCBS, or factored in the 2019 pay rise, meaning the second years DBCBS was higher then the first?

[stephen500]

Have you added on the 3.7% increase on the first years worth of DBCBS, or factored in the 2019 pay rise, meaning the second years DBCBS was higher then the first?

I presume these may be there as these are from the almost final benefit options I have been given.
Th £5750 is shown on my 2019 statement, we haven't had a 2020 one yet and the 2020 to 2021 (7 months) .
But the figures I have given are from the benefit options I have been given up to 1st Nov 2020, subject to revision.
They say they will give me a more up to date version, just before payment.