Increased contributions?

[fredtheegg]

Bit confused with this one ..

Colleague of around 35 years service recently took his NRA60 at age 55.

Then received a letter asking if they wish to increase contributions on the remaining pension. They now pay £50 a month which includes an increased contribution from RM of 12%.

As far as we know nobody else has received this letter after taking NRA60, and we wonder if anyone can shed any light on this or come across it before.

I believe I’ve explained it correctly. I might be wrong of course

[RobertT]

If they have only taken their NRA60 then they would normally be still paying into the DBCBS, which can be taken with their NRA65 pension. That will be at the contribution rate of 6% employee, 13.6% RM.

There is also the option to pay AVC's into Bonusplan(sections C & F) and/or Flexiplan.
Bonusplan does benefit from a small extra contribution from RM, but the maximum is only about £150 per year.

If they've actually taken both NRA60 and NRA65, or possibly just their NRA60 and then opted out of the RMPP without taking their NRA65? Then at some point they will be given the option to join the RM Defined Contribution Plan via Scottish Widows instead. Which has a maximum contribution rate of 6% employee, 10% RM.
It sounds as if that's the most likely.

Unless they're actually paying into both the DBCBS and RMDCP, which isn't allowed.

[fredtheegg]

If they have only taken their NRA60 then they would normally be still paying into the DBCBS, which can be taken with their NRA65 pension. That will be at the contribution rate of 6% employee, 13.6% RM.

There is also the option to pay AVC's into Bonusplan(sections C & F) and/or Flexiplan.
Bonusplan does benefit from a small extra contribution from RM, but the maximum is only about £150 per year.

If they've actually taken both NRA60 and NRA65, or possibly just their NRA60 and then opted out of the RMPP without taking their NRA65? Then at some point they will be given the option to join the RM Defined Contribution Plan via Scottish Widows instead. Which has a maximum contribution rate of 6% employee, 10% RM.
It sounds as if that's the most likely.

Unless they're actually paying into both the DBCBS and RMDCP, which isn't allowed.

As far as I know they’ve only taken the NRA60 and not opted out of anything else. Could it be they joined as part time then went full time a few years later?

[RobertT]

Whether they're full or part time isn't a factor at all!

It's just a case of which parts of their pension they've taken and if they're still a employee member of the RMPP/DBCBS or not.