New Pension if receiving others

[Hawkey99]

If you have received your NRA 60 and 65 could you still join the RM Defined Contribution.....

Thanks

[heapsy]

Think so. Bloke at our office took his NRA60 at 60. Took his NRA65 a bit early hoping to get a bigger pay off, which hasn't happened yet. I'm sure he's a member of this scheme. Wont be much due to his age. Why not phone pensions and find out? They'll only say no if not.

[RobertT]

If you have received your NRA 60 and 65 could you still join the RM Defined Contribution.....

Thanks

Yes you can. If you don't choose to join of your own accord you will be auto-enrolled at some point. See the plan guide for more info: https://adviser.scottishwidows.co.uk/as ... 0353sw.pdf" onclick="window.open(this.href);return false;

[freespeech]

Enrolled on your 12 month service anniversary

If after 12 months’ service you have not started paying contributions to the Plan, you will be enrolled for pension benefits at that point. The only exceptions are if:
• you are still under 18, in which case you will start paying contributions on your 18th birthday, or
• you are over age 64.

[RobertT]

Enrolled on your 12 month service anniversary

If after 12 months’ service you have not started paying contributions to the Plan, you will be enrolled for pension benefits at that point. The only exceptions are if:
• you are still under 18, in which case you will start paying contributions on your 18th birthday, or
• you are over age 64.

What the plan guide actually says is that you will be enrolled after 3 months of service:

There are two types of members – those enrolled automatically (or who choose to opt-in) and those enrolled after 12 months’ continuous service.

Enrolled automatically

The government has introduced a law designed to help people save more for their retirement. It means employers must give workers access to a workplace pension scheme and automatically enrol certain categories of worker into a workplace pension scheme.

For Royal Mail Group this law came into force on 1 November 2012, with most of its employees not already contributing to one of its pension schemes, being automatically enrolled into the Plan on 1 February 2013.

Automatic enrolment into the Plan applies to most new employees after 3 months of service. Anyone not automatically enrolled can “opt-in” at any time (in other words, choose to join voluntarily). You will receive more information when you join Royal Mail Group and as you approach your automatic enrolment date.

As far as I'm aware, those who've taken their NRA65 benefits and are therefore no longer paying into the RMPP, will be auto-enrolled into the RMDCP after 3 months, unless they opt in beforehand.

The 12 month service time frame only applies if enrolment didn't happen, either automatically or optionally, after 3 months.

[nataddick]

I have recently taken my NRA 65 benefits and took my NRA 60 benefits 5 years ago. I have joined the RMDCP as I intend working for a couple more years so it would be beneficial. I phoned the SW helpline and queried the 12 month rule and was told it does not apply if to existing RMPP members who are looking to join. I was sent an Options form, at my request, so don't know whether I would have been auto enrolled or not.

I am paying 4% AVC on top of standard 6% contribution. RM paying 10% - dead easy to set up and all working well with online account similar to my old SW AVC's.

[Hawkey99]

Hi Natadick,

Thanks for the info.

So you have a pension and AVC payment. How does the AVC work when it comes to claiming it. Is it the same as our other schemes. (Pension x 20 plus AVC dived by 25% gives you tax free lump sum)

I read on the link that you can pay in up to 85% of pensionable pay which is useful.

[RobertT]

So you have a pension and AVC payment. How does the AVC work when it comes to claiming it. Is it the same as our other schemes. (Pension x 20 plus AVC dived by 25% gives you tax free lump sum)

I read on the link that you can pay in up to 85% of pensionable pay which is useful.

It's a DC scheme, so all your money goes into one pot and invested in the funds available. Normal DC pension rules apply when accessing it.

The ability to pay in up to 85% applies to both the RMPP and RMDCP, but if you want the full benefits of PSE, you'll have to stick within the limits.

[Hawkey99]

so are we saying that Natadick is paying in 10% total contributions but AVC as such not exist in Royal Mail DC Pensions ?

[RobertT]

AVC's mean different things depending on which scheme you're in.

If you're in the RMPP and therefore currently paying into the DBCBS, then you can pay AVC's into Flexiplan(sections A, B, C & F) and Bonusplan(sections C & F). They are separate pots of money usually used to fund the tax free lump sum when taking NRA60/65 benefits, but can also be transferred out into a separate DC arrangement.

If you're in the RMDCP, then any additional payments you make just go into the same pot as the standard contributions. You have a few different options when you access the money, this will give you more info: https://www.moneyadviceservice.org.uk/e ... on-schemes" onclick="window.open(this.href);return false;

[Hawkey99]

Thank you Robert as always...