Royal mail pensions

Royal Mail pensions are provided by the Royal Mail Pension Plan (RMPP) and the Royal Mail Group Pension Plan (RMGPP). Here's an overview of the two plans:

Royal Mail Pension Plan (RMPP)

• The RMPP is a defined benefit pension scheme, which means that the pension benefit is based on a formula that takes into account the member's final salary and years of service.
• The scheme is closed to new members, but existing members can continue to accrue benefits.
• The RMPP is funded by Royal Mail and is managed by the Royal Mail Pension Trustee Company Limited.
• The scheme has a number of different sections, including:
  • Section A: This section provides a pension based on a member's final salary and years of service.
  • Section B: This section provides a pension based on a member's average salary over their career.
  • Section C: This section provides a pension based on a member's final salary and years of service, with an additional 1/80th of final salary for each year of service beyond 20 years.

Royal Mail Group Pension Plan (RMGPP)

• The RMGPP is a defined contribution pension scheme, which means that the pension benefit is based on the amount of contributions paid into the scheme and the investment returns.
• The scheme is open to new members, and contributions are made by Royal Mail and the member.
• The RMGPP is managed by the Royal Mail Group Pension Trustee Company Limited.
• The scheme has a number of different sections, including:
  • Section A: This section provides a pension based on the amount of contributions paid into the scheme and the investment returns.
  • Section B: This section provides a pension based on the amount of contributions paid into the scheme and the investment returns, with an additional 1/80th of final salary for each year of service beyond 20 years.

Pension Benefits

• The pension benefits provided by the RMPP and RMGPP are based on the member's final salary and years of service.
• The pension benefit is typically paid as a monthly income, and the amount of the pension benefit will depend on the member's final salary and years of service.
• The pension benefit may also be increased by inflation, known as the Retail Prices Index (RPI).

Pension Age

• The pension age for the RMPP and RMGPP is currently 65, but this is expected to increase to 67 in the future.
• Members can choose to retire earlier than the pension age, but the pension benefit will be reduced accordingly.

Pension Transfer

• Members of the RMPP and RMGPP may be able to transfer their pension benefits to a personal pension or a defined contribution pension scheme.
• The transfer value will depend on the member's age, salary, and years of service.
• Members should seek independent financial advice before making a decision to transfer their pension benefits.

Pension Scheme Changes

• In 2018, Royal Mail announced changes to the RMPP and RMGPP, including the closure of the RMPP to new members and the introduction of a new pension scheme for new starters.
• The changes were designed to reduce the cost of the pension schemes and to ensure their long-term sustainability.

It's worth noting that the information provided above is a general overview and may not be applicable to every individual. If you are a Royal Mail pension scheme member, you should consult the scheme's documentation and seek independent financial advice to understand your specific pension benefits and options.