Cash Balance increase announced

[POSTMAN]

https://www.royalmailpensionplan.co.uk/news/

Benefits building up in the RMPP after 1 April 2018 are normally increased each year in accordance with a policy set by Royal Mail Group (RMG).

This is based on market conditions from time to time, but the aim is to provide an above inflation increase.

We’re pleased to advise that the benefits built up in the Cash Balance fund as at 31 March 2022 for current employees (or those who left since 1 April 2018) were increased on 1 April 2023 by 11.3%. This met RMG’s aim of providing an increase above inflation (based on the CPI measure of 10.1%).

[1617mel]

This cash balance fund built up since April 2018, will this be payable as a lump sum,I'm 65 in August, none of my estimates sent have indicated , any value of this cash balance.
my last communication will be a letter offering my options and probably more exact amounts,will this cash balance show up then. Thanks

[RobertT]

When you send your forms back saying you want to take your pension, you'll get updated figures including your Cash Balance and any AVC's.

Although your annual statements do include a figure too, and it's not too difficult to come up with a reasonably accurate current amount using that as a base.

[1617mel]

Thanks Robert T

[1617mel]

Robert T, sorry is the cash balance from 2018 included in the estimate I have recieved, as it has said you're saving into this now,it's part of your age 65 benefits, I'm always the optimist and thought there was an actual accrued cah figure amount going to be available on top of the age 65 pension!

[RobertT]

There will be a cash figure payable with NRA65.

It's not usually included in your initial quotes but will be on your second ones, after you've given them your options.

[1617mel]

Thanks again!

[renrag40]

If you are in Section C the maximum tax free lump sum for your nra 65 pension 2012 to 2018 will be funded by the cash balance fund that you are presently paying into each week or month. Any funds remaining in the cash balance will then be paid out on the basis of 25% tax free and the remaining 75% paid at your nominal tax rate.