Pension breakdowns just don't add up and whats this cash balance!

[markis]

My previous pension statement of 2019 has the following:
Final salary pension march 2019: £2,037 + CSDB pension blocks £3,075 which gives a total of £5,112
My Capita gives a basic annual pension of £2,121 for 60 + £495 for 65 add that to my RMPP which is £1,993 gives a total of £4,609 so I'm £503 down.
I have excluded all the pension supplements.
Then there is the cash balance fund which stands at £8,408 and increases each year by approx £4,000. What is not clear is do you get this as a lump sum with a pension on top, or do you take part of the cash balance and the rest as a lump sum ?

[RobertT]

Are you including all the figures from both statements?
Your benefits are made up as follows:

NRA60:

RMSPS:
Basic pension
Pension supplements
Pension increase amount

RMPP:
Final salary addition
Supplement addition

NRA65:

RMSPS:
Basic CSDB pension
CSDB supplement
Pension increase amount

RMPP:
Basic CSDB pension
CSDB supplement

The Cash Balance(DBCBS) is a lump sum which will mainly be paid out with your NRA65, with a relatively small amount with your NRA60. It's in addition to NRA60 and NRA65 pension benefits.

For more details, see the website: https://www.royalmailpensionplan.co.uk/" onclick="window.open(this.href);return false;

[mr hil.]

Wouldn't it be nice if the new CDC would allow us to transfer in our previous RM pensions so that we only have one pension to worry about. The only downsides would be the new NRA 67 and no guarantees that the figures would not go down.

[RobertT]

Wouldn't it be nice if the new CDC would allow us to transfer in our previous RM pensions so that we only have one pension to worry about. The only downsides would be the new NRA 67 and no guarantees that the figures would not go down.

That's two BIG downsides!

[max49]

Same problem here, my partner's "65" pension has "lost" value this year. He had £633 +£1,871 =£2,504 this year, in 2019 the total pension was £3,085 and in 2018 it was £2987. The "loss" obviously also affects the lump sum. I have asked other colleagues at work but very few are pension savvy and don't really know what their previous forecasts were.

[Hawkey99]

Exactly same as my wife max.

I will be contacting the pension centre.....

[NorthernBoy]

Exactly same as my wife max.

I will be contacting the pension centre.....

Same - My NRA65 is down £200 on last year (deferred member), NRA up slightly but less than 1.7%

I am convinced they have made mistakes on calculations this year, especially on the NRA65. Pensions centre will have had loads of emails asking these questions, as soon as anyone gets a response, please post info on here.

[mw7485]

I'm wondering if its the NRA 60 benefits that are causing the confusion. My 2019 statement had 3309 (inc supplement) for NRA 65. This year, I have 2774 (inc supplement) for NRA 65, but, I have a figure 0f 613 for NRA 60 (from Capita). Like all other section C members, I had no estimate of NRA 60 benefits last year. However, If I add the NRA 60 and NRA 65 together this year, the total amount comes out to about where I would expect it to for aged 65 - and this does kind of make sense since RM don't have visibility of our NRA 60 benefits.....

[markis]

Are you including all the figures from both statements?
Your benefits are made up as follows:

NRA60:

RMSPS:
Basic pension
Pension supplements
Pension increase amount

RMPP:
Final salary addition
Supplement addition

NRA65:

RMSPS:
Basic CSDB pension
CSDB supplement
Pension increase amount

RMPP:
Basic CSDB pension
CSDB supplement

The Cash Balance(DBCBS) is a lump sum which will mainly be paid out with your NRA65, with a relatively small amount with your NRA60. It's in addition to NRA60 and NRA65 pension benefits.

For more details, see the website: https://www.royalmailpensionplan.co.uk/" onclick="window.open(this.href);return false;

Yeah, they are from both statements, and exclude the pension supplements that are paid until you reach state pension age. One thing in the RMSPS statement from Capita on pg 4 where it has 'current value of benefits at April 2020 it has in the black box ny basic annual pension of £2,121.00 + annual pension supplement until state pension £416.64 + £568 Pension increase amount. What is the last figure for and how is it worked out that is the 'Pension increase amount'.

[RobertT]

I'm wondering if its the NRA 60 benefits that are causing the confusion. My 2019 statement had 3309 (inc supplement) for NRA 65. This year, I have 2774 (inc supplement) for NRA 65, but, I have a figure 0f 613 for NRA 60 (from Capita). Like all other section C members, I had no estimate of NRA 60 benefits last year. However, If I add the NRA 60 and NRA 65 together this year, the total amount comes out to about where I would expect it to for aged 65 - and this does kind of make sense since RM don't have visibility of our NRA 60 benefits.....

The 2019 statement didn't have NRA60 or NRA65 figures, it had final salary and CSDB figures.
You obviously know what's on your statement, but if this years total is more than last years, it sounds as if it might be correct after all?

[RobertT]

Are you including all the figures from both statements?
Your benefits are made up as follows:

NRA60:

RMSPS:
Basic pension
Pension supplements
Pension increase amount

RMPP:
Final salary addition
Supplement addition

NRA65:

RMSPS:
Basic CSDB pension
CSDB supplement
Pension increase amount

RMPP:
Basic CSDB pension
CSDB supplement

The Cash Balance(DBCBS) is a lump sum which will mainly be paid out with your NRA65, with a relatively small amount with your NRA60. It's in addition to NRA60 and NRA65 pension benefits.

For more details, see the website: https://www.royalmailpensionplan.co.uk/" onclick="window.open(this.href);return false;

Yeah, they are from both statements, and exclude the pension supplements that are paid until you reach state pension age. One thing in the RMSPS statement from Capita on pg 4 where it has 'current value of benefits at April 2020 it has in the black box ny basic annual pension of £2,121.00 + annual pension supplement until state pension £416.64 + £568 Pension increase amount. What is the last figure for and how is it worked out that is the 'Pension increase amount'.

The figures are just set out differently to previous years!

In the past, the annual inflationary increases were factored into the pensionable pay figure. This year the pensionable pay is what it was in 2008 and the annual increases are given as a separate figure – the pension increase amount.

Therefore the figures in the green boxes on the RMSPS statement are the important ones, as that's what your pension is worth on the statement date. if you don't want to include the supplement, as I assume you're not planning on leaving RM, then just subtract those amounts.