Railway Pensions Query

sleepymans

Does anyone know about this scheme please?
OH had 13 years service (resigned in 1993) and has received a statement advising him what the benefits are at age 60, and enclosing a claim form.

The situation is that he is now 63 and still working fulltime with another employer.

He wrote to Railway Pensions asking if he could delay taking the pension until he actually retires from work (which will likely be when he reaches 65 and becomes entitled to his state pension), and if he does, what effect the delay would have on the amount payable.

(We had looked on the Railway Pensions website to check if the answer might be there...but no, all we could find listed was the effects of taking it early! We also couldnt find fulldetails on the rules of the scheme on that site either! Any paperwork still in our possession likewise does not contain the answer to the query.)

The Railway Pension officedid not answer the query and merely sent another statement showing what he had become entitled to in 2010 and enclosing another claim form!

Can anyone on here either enlighten me, or point me in the direction to find out please?

I was surprised that the RP website hasnt got a link to the scheme rules??



He would like to know if he would he have the options of either:

1. claiming what was due in 2010 and backdated (dont really want to do this because of the amount of tax he would have to pay)...or
2. claiming the pension effective from now (we dont really want to do that either for the same reason as above) but would it be enhanced as the scheme has "saved" 3 years payments, or
3. wait until he is 65, retires before claiming (he will be paying less tax due to the fall in income then) And if so, will the pension be more due to 5 years delay?

p.s. I realise the state pension and RP payments will be taxable but together probably fall under the personal allowance.

Thank you in anticipation

sleepymans

Has anyone any knowledge or suggestions about my query please?

mania112

If he has statements saying what his entitlement was at age 60, surely he's already deferred? Has he not already have a conversation with RP to delay the pension?

sleepymans

Thanks Mania112.
I'm not sure what "deferred" means in this context.

He left the job in 1993 and had no further communication with RP until the statement recently which shows what benefits he was entitled to w.e.f. 2010 and enclosing a claim form.

There hasnt been any discussion or communication between 1993 and that statement arriving.

Thanks

mgdavid

sleepymans wrote: »

Thanks Mania112.
I'm not sure what "deferred" means in this context.

He left the job in 1993 and had no further communication with RP until the statement recently which shows what benefits he was entitled to w.e.f. 2010 and enclosing a claim form.

There hasnt been any discussion or communication between 1993 and that statement arriving.
Thanks

weird;
and what exactly is a 'claim form' can you describe it in more detail please?
Are there different options on it, if so what are they?
Have you moved addresses since 1993?

atush

Also, if the pension was backdated, you could mitigate the income by putting it into a pension now. Which would reduce your income, and gain extra tax relief.

xylophone

https://www.railwayspensions.co.uk/Resources/Client/PML.RailwayPensions/Templates/Folder.aspx?DocID=2725&

There is a telephone number so you could telephone and ask for a copy of the rules of the scheme. Ask for a formal written reply to your letter.

https://forums.moneysavingexpert.com/discussion/4237873
https://forums.moneysavingexpert.com/discussion/4085527

Gamston might have a copy of the rules - PM him?

xylophone

I have just thought - was he given an information booklet when he left the scheme - perhaps now lurking among his papers (something like this from LGPS http://www.wmpfonline.com/NR/rdonlyres/9E8B6B57-F4CE-4C33-9BC3-52AD0692D52F/0/PAS184Deferredbenefits.pdf)

sleepymans

Thanks for the suggestions folks.
I have now resolved my query.
I called the RP helpline and although they (quite rightly) would not discuss my OH pensions specifically, they did answer my generic questions.

The pension is payable on age 60 and if you have left the job you have no choice but to take the pension benefits w.e.f. 60th birthday.

So, sadly my OH will have to complete and return the claim form and have the pension payments/benefits owing backdated 3 years.

There are options on the claim form to increase the taxfree lumpsum/reduce the pension or to take level payments and/or opt for a larger widows element.

For OH it means taking the standard lumpsum tax free and then taking the whole underpaid 3 years pension payments now and paying tax now on all of it:(

Oh well at least we now know the score......after 65th birthday when he retires from his present job we are going to be seriously poor!...I guess, like many others, but not as badly off as some other people.

We will probably use the small tax free lump sum and the netted off arrears towards paying down the mortgage....

Ho HUm....

I thoought if I shared the answer here, then anyone else in the RP scheme will know too.

xylophone

http://www.hmrc.gov.uk/manuals/sammanual/sam121160.htm
Does this have any relevance to your husband's tax situation?

mania112

sleepymans wrote: »

Oh well at least we now know the score......after 65th birthday when he retires from his present job we are going to be seriously poor!...I guess, like many others, but not as badly off as some other people.

Not sure how you define 'seriously poor' but i'm not sure if you were able to defer for 5 years it would have a made a huge difference to your ongoing finances.