Royal Mail Pensions - Early Leavers

Zero_Delta

Hi there,

I'm new to this and looking for some information.

Has anybody out there ever used the Royal Mail Early Leavers Team? I want to cash in my Royal Mail Pension, as it is small enough not to worry about, but just enough to stop me getting the benefits that I should be entitled to.

RM Helpline told me to use the Early Leavers Team, but he couldn't give me any more info. So any help or advice welcome.

Cheers

Pollycat

Sorry I can't help but didn't the RM Helpline even give you a contact telephone number/email address for this 'Early Leaver Team'?

Zero_Delta

Hi Pollycat,

Thanks for that. Yes, they did give me the address, but they wouldn't give me any info over the phone. The only way I can get info is by applying for it directly.

I would have liked the chance to read over it all first, just to make sure that I was doing the right thing, or to see if there were any other options.

Regards,

Zero Delta

Pollycat

Is it the RM Helpline who can't give you any information or the Early Leavers Team?

It sounds really strange that you can't get information to allow you to make a considered decision without applying formally.

I'm also a bit confused about what you want to apply for.
How long have you/did you work for Royal Mail for?
Is it a deferred pension or do you just want your pension contributions back?

Zero_Delta

Hi Pollycat,

It's the RM Helpline who won't give info.

Worked for RM for 16 years. Medically retired in 1996, now aged 55. I am currently receiving a small pension from RM.

I want to cash in the remainder of my pension, rather than receive the weekly payment. Exchange the pension for a lump sum if you know what I mean. The RM Helpline said that I can do this, but I have also been told on a RM forum that I can't, however he didn't say how he knew this.

Really confusing. Starting to wonder if it is worth the hassle?

Regards,

Zero Delta

Pollycat

Ah, I see what you want to do now.

Unfortunately, I've no idea whether what you want to do is possible (I'm a RM pensioner too).

I'm really surprised that the RM Pensions Helpline couldn't tell you whether commutation of your pension into a lump sum is possible or not.
From what you've said, you're not an 'early leaver'.
You're an existing pensioner.
I don't mean to sound rude but are you absolutely sure that the Helpline understood what you were asking them?

I'd have thought that the first thing to do would be to establish if it's even possible to commute your pension.
THEN if it is, you'd want to get an estimate of how much the lump sum would be so you can decide if it's actually financially a good decision.

Have you tried emailing them or writing to them?
Contact details below:

• Email: [EMAIL="pensions.helpline@royalmail.com"]pensions.helpline@royalmail.com[/EMAIL]
• Post: Pensions Service Centre
  PO Box 500
  CHESTERFIELD
  S49 1WX

Andy_L

Pollycat wrote: »

Ah, I see what you want to do now.

Unfortunately, I've no idea whether what you want to do is possible (I'm a RM pensioner too).

It isn't. you can only "cash in" a pension, (ie take it all as cash rather than an annual pension) under very narrow circumstances. As you were medically retired 14 years ago none of them apply.

Zero_Delta

Pollycat wrote: »

Ah, I see what you want to do now.

Unfortunately, I've no idea whether what you want to do is possible (I'm a RM pensioner too).

I'm really surprised that the RM Pensions Helpline couldn't tell you whether commutation of your pension into a lump sum is possible or not.
From what you've said, you're not an 'early leaver'.
You're an existing pensioner.
I don't mean to sound rude but are you absolutely sure that the Helpline understood what you were asking them?

I'd have thought that the first thing to do would be to establish if it's even possible to commute your pension.
THEN if it is, you'd want to get an estimate of how much the lump sum would be so you can decide if it's actually financially a good decision.

Have you tried emailing them or writing to them?
Contact details below:

• Email: [EMAIL="pensions.helpline@royalmail.com"]pensions.helpline@royalmail.com[/EMAIL]
• Post: Pensions Service Centre
  PO Box 500
  CHESTERFIELD
  S49 1WX

Hi Pollycat,

Thanks for that. To be honest, I don't know if the guy at the RM Pensions Helpline understood what I was asking, even though I repeated it twice - slowly!

But hey, it was just an idea.

I will certainly take your advice and email them.
If it works - fine.
If not - I'm not that bothered.
It would have been nice to get a lump sum, as my daughter is getting married soon and the cash would have been useful.

Kind regards,

Zero Delta

Zero_Delta

Andy_L wrote: »

It isn't. you can only "cash in" a pension, (ie take it all as cash rather than an annual pension) under very narrow circumstances. As you were medically retired 14 years ago none of them apply.

Hi Andy,

Thanks for that. Please don't think that I am being cheeky, as I'm not. I was just wondering how you know this?

Kind regards,

Zero Delta

Andy_L

It's the law :-) basically the tax man doesn't want you to abuse the tax advantages of pensions

Generally, once cash goes into a pension scheme its trapped/protected (depending on your point of view) in their until you retire and then pays your annual pension

To get out the cash value rather than that pension it either needs to be so low in value that the taxman relaxes those rules to save everyone the admin effort/costs. As a medical pension your's is probably 2 high & anyway the option had to be exercised before taking the pension.

Other ways are dying :-), leaving the employer with less than 2 years service & terminal illness.

Just to contradict myself I'm starting to recall hearing that employers can "buy you out" by offering you a lump sum instead of the pension. No idea if thats still allowed, however If they didn't offer it at the time they probably wouldn't do it now.