Supplement warning

[TheStrangler]

For those in section C that are leaving RM be aware that the figure you see in your annual pension statement or indeed in your final quote is not necessarily what you receive.
I was led to believe I'd get around £1,200 per year supplement but I've been told by capita it's around £800 a year.
Luckily for me it's not that big a deal but it could be significant for some.
It's not helped by the fact that it's virtually impossible to get an accurate quote on the supplement beforehand.
I have queried this and await a response but my best guess is at this point that the supplement is reduced for taking the pension early although the paperwork doesn't make it clear.

[RobertT]

I believe the supplement is reduced for early payment, just as the main pension is. I don't think that's anything new!

[tractorboy2]

How early have you taken your pension , my rough calculation says about 3 years.

[RobertT]

I also guestimated it was about 3 years early.

If so, it sounds as if most of the loss of supplement will be made up by the fact you're receiving it for longer.

[TheStrangler]

Yes , 3 years early (based on NRA 60) though there was also a small increase from the rmpp.
My problem with it is that at no stage was I given the correct figure for the supplement and that's not for want of trying.
They'll give you the correct adjustments for taking your pension early but when it comes to the supplement it's a case of letting them know once you leave and you get what you get.

[thelastsuspect]

I agree the pension supplement seems to be a shambles with not being given any or the correct figures.
Which does not help you when you are trying to work out if you can afford to retire or not!

[Hawkey99]

How many years service was that for ?

Thanks

[TheStrangler]

28

[tractorboy2]

The pension supplement really seems to be a minefield, having read several threads on the subject.
Is it included in the lump sum calculation or not ?
If it is how much do you lose when SPA is reached ? As the amount received yearly will be 75% of a quoted figure.
So for example if your pension supplement is £1000 a year , will you lose £750 at SPA or still £1000 ?
Or is it something else entirely ?

[RobertT]

The pension supplement really seems to be a minefield, having read several threads on the subject.
Is it included in the lump sum calculation or not ?

The 'members guide to benefits' says it is, people on this forum who've applied for their pension say it isn't.

If it is how much do you lose when SPA is reached ? As the amount received yearly will be 75% of a quoted figure.

Where do you get 75% from?

So for example if your pension supplement is £1000 a year , will you lose £750 at SPA or still £1000 ?
Or is it something else entirely ?

The supplement is reduced if you take it before NRA, but I don't think the normal 5% rule applies to that, although I could be wrong?

When you reach SPA you'll lose however much supplement you've actually been getting beforehand.

[tractorboy2]

The 75% comes from the remainder after having 25% included in a lump sum payment
Hell , if it is included maybe there is a totally different calculation made.

Maybe if using that £1000 a year example ,you got £5000 as a lump sum(using the normal lump sum criteria) , then £2000 would be paid over the seven years till SPA roughly £285 a year. so that the £7000 ( 7 x £1000) is not exceeded.

[RobertT]

Ah yes, that explains it. It's the Sunday morning after the night before you know!

If you read the RMPP 'guide to benefits', it does state the supplement is included in the lump sum calculation. But it's not mentioned in the RMSPS version.

In my opinion you should assume the supplement isn't included and is worked out separately from the main pension/lump sum.

[heapsy]

I was recently told by the pensions office, and I posted on here somewhere, that the supplement is separate, and is therefore NOT to be used, when trying to calculate your lump sum.