Ill health top up

[Dindin]

Is it possible to do twenty years payment into the pension get ihr and RM top you up to 50 years pension?

[heapsy]

No. I think RM might under certain circumstances, pay out at whatever age you are. The maximum pension you can get is now 45 years, used to be 40. At the moment, those in the old DB schemes can pay AVCs to build up more pension, which will provide a lump sum, but not buy more years. Why would you want to anyway?

[Hawkey99]

Is an Ill Health retirement payment tax free ?

[Dindin]

What I'm asking is. . you pay into your pension for 30 years become ill .get ihr . Then do RM top it up to 50 years? The ihr where you get to take your pension at say 47

[RobertT]

No, RM do not top up your pension if you get IHR!

There are 2 types of IHR:

A. 34 weeks pay tax free plus I think either 9 or 12 weeks PILON depending on service, which is taxable.

B. IHR with benefits, which I don't know much about to be honest, but I think you get the pension you've accrued unreduced, plus other benefits.
This thread might give you more detail.

You're only likely to get option B if your medical condition means you're deemed to no longer be able to work.

All members in sections A, B & C of the RMSPS/RMPP stopped accruing any more pension in 2018, so the number of years you had then is all you'll get via those particular schemes.
Although the RMPP website does seem to suggest that anyone still buying added years via Addplan can continue, presumably until the CDC scheme starts?

The money saved in AVC's via Bonusplan and Flexiplan is used by most people to provide a lump sum. But some or all of it can be used to buy an annuity(income for life) if you choose, although that is totally separate from your main NRA60/65 pension/s.

We will all be able to build up more pension years via the CDC scheme when that starts.

[Dindin]

Thanks Robert T

[mrcurve]

They closed down Addplan with the last changes, it was quite annoying, and of course the extra years people were buying was supposed to be based on the actual final salary, so I guess the payments bought less in the long term.

[RobertT]

They closed down Addplan with the last changes, it was quite annoying, and of course the extra years people were buying was supposed to be based on the actual final salary, so I guess the payments bought less in the long term.

I did think they closed Addplan in 2018. Although the RMPP website does seem to suggest it's still open, or maybe they didn't update it 3+ years ago?

[fly-catchers]

They closed down Addplan with the last changes, it was quite annoying, and of course the extra years people were buying was supposed to be based on the actual final salary, so I guess the payments bought less in the long term.

I did think they closed Addplan in 2018. Although the RMPP website does seem to suggest it's still open, or maybe they didn't update it 3+ years ago?

Yes it was closed completely after 31st March 2018. But never updated the info on the RMPP site. I was lucky to take advantage of that scheme. Wonder how many people actually took it out across RM over the years? Assuming they qualified for it.

[RobertT]

Yes it was closed completely after 31st March 2018. But never updated the info on the RMPP site. I was lucky to take advantage of that scheme. Wonder how many people actually took it out across RM over the years? Assuming they qualified for it.

I looked into Addplan in the 90's when I first took an interest in my pension and was told I had the potential to work too many years and so wasn't allowed to join.

I suspect a relatively small number of people actually took it out.

[Hawkey99]

If you are given Ill Heath retirement do you know if they take pension payment for the 46 weeks (assuming that what you get)..

Thanks

[RobertT]

If you are given Ill Heath retirement do you know if they take pension payment for the 46 weeks (assuming that what you get)..
Thanks

I wouldn't have thought so.

[Hawkey99]

Is any of your Ill Health Retirement payment (34 + 12 weeks) tax free ?

[RobertT]

You already asked that question upthread and it was answered:

A. 34 weeks pay tax free plus I think either 9 or 12 weeks PILON depending on service, which is taxable.