NRA 65......Be careful

[Hawkey99]

I assume that your AVC money can be added to both of these amount from the RMPP and PMSPS

NRA RMPP Standard Benefit £3125 x 20 = £62500
NRA RMSPS Standard Benefit £1041 x 20= £20820
Total £83320

AVC £20,000
DBCBS £15,000

Combined total £118,320

Tax free lump sum £29583

Tax to be paid on £5413

Does that sound about right ?

[Hawkey99]

Also could you add your just your Bonus plan AVC to your DBCBS to your NRA 65 and just transfer your Flexiplan to another provider.. ?

[RobertT]

I assume that your AVC money can be added to both of these amount from the RMPP and PMSPS

NRA RMPP Standard Benefit £3125 x 20 = £62500
NRA RMSPS Standard Benefit £1041 x 20= £20820
Total £83320

AVC £20,000
DBCBS £15,000

Combined total £118,320

Tax free lump sum £29583

Tax to be paid on £5413

Does that sound about right ?

I'm not sure what you mean by 'NRA RMPP/RMSPS standard benefit'?

Do you actually mean:
NRA65 pension = £3,125
NRA65 supplement = £1.041

Or are you just using your RMPP illustration figures, which obviously relate to just 2012-2018 benefits. Meaning you have another 2 years(2010-2012) worth of NRA65 benefits via the RMSPS.

Or are you thinking of something else?

If your figures are correct, then they sound about right. But the way I understand things is that any excess you take as a lump sum from AVC's or DBCBS is treated as a UFPLS, so you won't pay quite as much tax as you think.

Also could you add your just your Bonus plan AVC to your DBCBS to your NRA 65 and just transfer your Flexiplan to another provider.. ?

Flexiplan and Bonusplan can be used separately, so going by a question you asked the PSC a few weeks ago, which you shared in this thread, then it's a yes! It also confirms the UFPLS treatment of any excess.

[Hawkey99]

Hi Robert,

Slightly different question. They said I could take both but as Im going to have to much in combined lump sums I wondered if I could just take one, The Bonus plan and transfer the Flexiplan to another provider.

Re my earlier figures

NRA RMPP Standard Benefit £3125 x 20 = £62500
NRA RMSPS Standard Benefit £1041 x 20= £20820

These are the 2 parts of my NRA 65 excluding supplement. The RMPP one being run by Royal Mail and the other an estimate of the RMSPS held by Capita if the 75/25 you have mentioned is correct...

[RobertT]

Hi Robert,
Slightly different question. They said I could take both but as Im going to have to much in combined lump sums I wondered if I could just take one, The Bonus plan and transfer the Flexiplan to another provider.

Yes you can, but you have to make the transfer as a separate transaction to taking your NRA65 benefits. That could be either before or afterwards.

Re my earlier figures

NRA RMPP Standard Benefit £3125 x 20 = £62500
NRA RMSPS Standard Benefit £1041 x 20= £20820

These are the 2 parts of my NRA 65 excluding supplement. The RMPP one being run by Royal Mail and the other an estimate of the RMSPS held by Capita if the 75/25 you have mentioned is correct...

It's obviously a 75/25 split as 6 years of your NRA65 are with the RMPP and the other 2 are with RMSPS.

I might add when working out the pot value, the supplement needs to be included aswell, as per the info in the plan guide.

[stephen500]

As Robert said i have taken my NRA 60.

So just to be clear do we think that the NRA 65 is divided as below

NRA 65 Pension

RMPP hold 60% of your NRA 65 Pension
RMSPS hold 40% of your NRA 65 Pension

I inserted a table above (it is also below( of a real person who has a Section C pension. If you are section C. Use that table and play around with it using ratios. Insert your starting pension figure at the top and then use ratios to find all your other figures. Everyone one who entered CSDB at the start has had the same service in that scheme and ratios should give you reasonably correct figures. If you are section B , get back to me as it is slightly different as are the option numbers and letters

[Hawkey99]

Yes Stephen. I have copied it. Many thanks.

Such a tricky subject.......

[Hawkey99]

So this is what I think the final plan is

Take maximum NRA 65 Approx £4000
Take AVC Bonus plan all tax free £2000
Take DBCBS all tax free approx £15,000 (approx)

This leave my Flexiplan which I believe I can either leave in place or move to another provider.

Then join the RMDC Scheme to continue utilising tax allowances until I retire which should be 2-3 years.

Sounds like a plan.......

[freespeech]

As Robert said i have taken my NRA 60.

So just to be clear do we think that the NRA 65 is divided as below

NRA 65 Pension

RMPP hold 60% of your NRA 65 Pension
RMSPS hold 40% of your NRA 65 Pension

I inserted a table above (it is also below( of a real person who has a Section C pension. If you are section C. Use that table and play around with it using ratios. Insert your starting pension figure at the top and then use ratios to find all your other figures. Everyone one who entered CSDB at the start has had the same service in that scheme and ratios should give you reasonably correct figures. If you are section B , get back to me as it is slightly different as are the option numbers and letters

I can see this as a pic but not as a spreadsheet to download. Where can I find it?

[Hawkey99]

Interestingly if I take my NRA 65 lump Sum it would take over 24.5 years to make up the difference in pension reduction.

Standard Benefit £3125

Pension £2456 plus £16,375 lump sum....

£3125-£2456= £669

£669 x 24.5 years = £16390

Sounds like a good rate....

[RobertT]

As Robert said i have taken my NRA 60.

So just to be clear do we think that the NRA 65 is divided as below

NRA 65 Pension

RMPP hold 60% of your NRA 65 Pension
RMSPS hold 40% of your NRA 65 Pension

I inserted a table above (it is also below( of a real person who has a Section C pension. If you are section C. Use that table and play around with it using ratios. Insert your starting pension figure at the top and then use ratios to find all your other figures. Everyone one who entered CSDB at the start has had the same service in that scheme and ratios should give you reasonably correct figures. If you are section B , get back to me as it is slightly different as are the option numbers and letters

I can see this as a pic but not as a spreadsheet to download. Where can I find it?

So just save it to your computer or print it off.

[RobertT]

So this is what I think the final plan is

Take maximum NRA 65 Approx £4000
Take AVC Bonus plan all tax free £2000
Take DBCBS all tax free approx £15,000 (approx)

This leave my Flexiplan which I believe I can either leave in place or move to another provider.

Then join the RMDC Scheme to continue utilising tax allowances until I retire which should be 2-3 years.

Sounds like a plan........

Are you taking your NRA65 early and factoring in the early payment reductions?
Have you included the supplement in your 'pot value' calculations?
How does what you propose compare to taking your benefits at NRA?
Is it more tax efficient to take the Flexiplan with your NRA65 or transfer out?
Have you factored in the CDC scheme and the fact that we'll all be enrolled into that, with existing schemes closing. Bearing in mind there are no definite timescales to CDC implementation.

[celtic1967]

Royal Mail pension is ridiculously complex.

[hazzeem025]

Royal Mail pension is ridiculously complex.

It's an absolute farce. How about our shite employer just makes it as easy as possible for us to understand our pension illustrations, instead of requiring us to have a degree to work it out! The cynic in me just thinks they make it this complicated to save paying out the maximum!

[Hertsman001]

IM quite good when it comes to Isa and pensions as in normal . I have a pension with another large company which is easy to understand . Can go on their website and put in any date I like and it will tell me within reason what I would get . The Royal pension is a nightmare to get your head around. IM waiting for the latest statements to arrive as IM 60 next year and plan on leaving then,but just taking the NRA60. I wonder if I will be any the wiser once I get them LOL.