How much do i and royal mail pay each week in to my pension?

[Edward Hunter]

been looking at my wage slip and can only see the that my "pensions contribution pay "says £535. Which works out about £21per week. Is that correct. And what would RM pay in.Thanks in advance

[BenacreNick]

Hey Edward,

As i understand it, your current employee contribution is 6%.

I think RM's employer contribution is 13.6%, (although its very difficult to find confirmation of this anywhere - so i need to check this).

[RobertT]

been looking at my wage slip and can only see the that my "pensions contribution pay "says £535. Which works out about £21per week. Is that correct. And what would RM pay in.Thanks in advance

Which pension scheme are you in?

If you're in the RMPP and therefore paying into the DBCBS, then the set contribution rate is 6% of pensionable pay. Which in turn benefits from 13.6% from RM.

If you're in the RMDCP, it's a maximum of 6% with RM paying 10%. But lower contribution options also exist.

The Pensions Contrib Pay on your payslip is the amount of your wages that is pensionable. A £21 per week contribution works out as 4%, which suggests you're in the RMDCP and not paying in as much as you can to get the maximum contribution from RM.

[Edward Hunter]

Thank you Robert T. im clearer now. You are a mine of information.I was dividing the 535 by the tax period (24/2023) to get the £21 figure which was totally wrong.

[Edward Hunter]

Thank you Robert T. im clearer now. You are a mine of information.I was dividing the 535 by the tax period (24/2023 in the case of the payslip i was looking at) to get the £21 figure which was totally wrong. Im in the RMPP DCBS C. from your info i just sussed it on my payslip. I was looking under deductions instead of payments.
Another question if i may. My current Age 65 cash balance fund is £21.000.Do you know how much of that i could take unreduced of that at age 60?

[RobertT]

Thank you Robert T. im clearer now. You are a mine of information.I was dividing the 535 by the tax period (24/2023 in the case of the payslip i was looking at) to get the £21 figure which was totally wrong. Im in the RMPP DCBS C. from your info i just sussed it on my payslip. I was looking under deductions instead of payments.
Another question if i may. My current Age 65 cash balance fund is £21.000.Do you know how much of that i could take unreduced of that at age 60?

You pay 6% of the 'pensions contrib pay', which in your case should be about £32.

The DBCBS is designed to pay a lump sum with NRA65 benefits. But it can also be used to fund some of the NRA60 lump sum, because the RMPP are also responsible for paying out some of the inflationary increases associated with RMSPS benefits.

This is just a guestimate on my behalf so don't make any important decisions based on it. But I would say, no more than 10-15% can be taken at 60.

[Edward Hunter]

Thanks again Robert T