Final salary - effect on pre 2008 of losing allowances?

[stephen500]

Dear Terry Pullinger,
Some one raised a very important point on Royal Mail chat, which I would really appreciate if you could find an answer too. If our DB scheme closes in 2018, it states on page 41 of Royal Mails proposal, that section B members will see uprating based on FS and section C by RPI. I also note that for payment RM base my 2008 pension on my final salary and use the best of 3 years. So after the scheme closes in 2018, does that mean if that pension is taken after 2022 that a night worker who had either full night or part night allowance (or any other allowance ) would see their 2008 FS scheme pension reduced because their final salary would have reduced. Ie mine down from £26k to £21k. This if true would reduce my FS pension (2008) from around £9k to about £7k. For me personally I do not think it would make a difference as I plan to retire/resign in Feb 2021 and with the scheme closing in April 2018 this Means I leave within the best of the last three years (or best three of last ten years, see below) for calculation purposes. However those going past 2028?? may not be as lucky and lose up to around £1800 per year from their 2008 FS pension. I do not think the CSDB one is affected as they is a career average scheme. I will ring pensions and find out what I can. I would be most grateful if you could find out what you can and see if any thing can be done to help those going past 2028.

Note: I am a section B member

Below from : http://www.royalmailpensionplan.co.uk/s ... .08.12.pdf" onclick="window.open(this.href);return false;
I saw this on Royal Mail pension site
"Pensionable salary – This is used to
calculate the part of your pension
benefits that relate to your service
before 1 April 2008 and the lump sum
benefit paid to your dependants
if you die while still working for the
Company. It is the total of your basic
annual salary or wages (including,
where appropriate, London Weighting)
plus any pensionable allowance
in whichever of the last three years
of reckonable service gives you
the highest amount. Pensionable
salary is adjusted to the full-time
equivalent during periods of part-time
employment unless stated otherwise.
Where it would give you a higher
amount, your average annual[
pensionable salary plus other
pensionable payments over the
best three consecutive tax years
in the last ten years will be used .
The best year in the last three years
ends on either:
k The last day of your reckonable
service; or
k A date which is 91 days (or up to
eight multiples of 91 days) before
the last day of your reckonable
service.
For example:
If your last day of service is
30 November 2012, your best year
could end on that date or on any
of the following dates which are 91
days (or multiples of 91 days) before
30 November 2012:
k 31 August 2012
k 1 June 2012
k 2 March 2012
k 2 December 2011
k 2 September 2011
k 3 June 2011
k 4 March 2011
k 3 December 2010"