pension

Post by kh » 05 Oct 2020, 16:23

can anyone tell me how you would work out my pension

Post by **freespeech** » 05 Oct 2020, 16:49

kh wrote:can anyone tell me how you would work out my pension

You should be receiving statements within the next week or two (some have received them already). Suggest you just wait.

Post by **RobertT** » 05 Oct 2020, 19:35

kh wrote:can anyone tell me how you would work out my pension

I'm happy to help, but you'll have to be more specific.
RM pensions are a minefield at the best of times, what exactly are you having trouble with?

Post by kh » 05 Oct 2020, 22:56

RobertT wrote:
kh wrote:can anyone tell me how you would work out my pension
I'm happy to help, but you'll have to be more specific.
RM pensions are a minefield at the best of times, what exactly are you having trouble with?

thanks robert t it was just to work out how much i would get im thinking about taking it next year when im 55 i had 23 years in royal mail

Post by **RobertT** » 06 Oct 2020, 08:44

It's a subject that's been covered many times on this forum!

It sounds as if you're in section C, so for NRA60 benefits:

Take your 'current value of annual pension' figures from your RMSPS statement and multiply by 20, then subtract 25% for taking it 5 years early, then divide by 20 to get revised annual pension. For example with NRA60 benefits of £8,000 per year:

8,000 x 20 = 160,000 – 25% = 120,000 = 6,000

Do the same with your NRA65 benefits which are split between your RMSPS and RMPP statements, taking it account the reduction will be 50% if taking them at age 55.
Your DBCBS balance will also be payable as a lump sum, some of which may be taxable depending on the amounts involved. In practice section C members are much less likely to pay tax due to them not getting a lump sum as standard, as A/B members do.

The above method should provide a ballpark guide to how much to expect, but you can get quotes from both the RMSPS and RMPP that will provide more accurate figures.

See the RMPP website in general and the plan guide in particular for more info: https://www.royalmailpensionplan.co.uk/" onclick="window.open(this.href);return false;

grchpo · Post by **grchpo** » 06 Oct 2020, 18:38

Today i received my RMSPS statement. My annual pension will be about £3,500. Is this right for 20 years full time or am I reading this wrong somehow

Post by **RobertT** » 06 Oct 2020, 18:51

grchpo wrote:Today i received my RMSPS statement. My annual pension will be about £3,500. Is this right for 20 years full time or am I reading this wrong somehow

Your RMSPS statement relates to the pension you accrued up to 31st March 2012, which includes all your NRA60 benefits aswell as the first 2 years of your NRA65.

The 'current value of annual pension' figures in the green boxes are the important ones!

We should be getting our RMPP statements in the next week or two, which will include the remainder of our NRA65 benefits and the DBCBS.

grchpo · Post by **grchpo** » 06 Oct 2020, 19:28

If £3,500 is my yearly pension how do i work out how much lump sum I can get, help please

Post by **RobertT** » 07 Oct 2020, 05:29

grchpo wrote:If £3,500 is my yearly pension how do i work out how much lump sum I can get, help please

Use the same method as in my post above. You can take 25% of your total pot value as tax free cash.
Remember to also include the DBCBS with your NRA65 calculations, aswell as any AVCs.