Moving a Royal Mail pension

chucknorris

dasherman wrote: »

Somebody has said that it’s not possible to move your pension while you’re still employed. That is wrong! You can move it to another pension assuming you can get an IFA to sign it off. Or it’s also possible to transfer your benefits to a ‘buy-out’ policy with an insurance company. But if you took either of these options you would frankly and no offence, be a complete fool.

Unfortunately there doesn't seem to be a shortage of fools. But even so I can't help thinking that posts like that are just wind ups. Despite the ample number of fools around, it is really hard to believe that people could really be that daft.

atush

Why do you want to move your pension?

If you quit your job, smoke like a chimney, have no spouse/dependents, are drinking heavily then yes, it May be possible to transfer your pension.

Pretty stupid thing to do though.

scott_lithgows

dasherman wrote: »

My thoughts are that you really don't know what you're talking about.

That's a great help,I got the works pension when I started and was told that if I worked for 40 years I would get 50% of my pay when I retired,the scheme has has 3 major changes since then.

No one in my office has a clue whats going on and since it was RM who never paid in to the scheme for 15 years and caused the government bailout,we don't have a lot of trust either.

Any other advice? Lottery numbers?

dasherman

However RM wish to take 50% of the funds in the post rescued pension scheme and spend or prob waste.

Rm wish to keep the scheme open poss to have some cash lying about to pay shareholders.

Ok i know my comment wasn't very constructive, apologies for that. But as RM pension scheme members we have recieved a certain amount of bumf concerning what RM want to do with the pension. None of it says that they want to take half of it to waste or give to shareholders.

Can you withdraw from such a scheme and go to auto-enrolement instead?

I suppose you can do, but why would you want to quit a salary based pension with currently a 18% employer contribution for a DC scheme with less benefits.

I,m thinking RM cant touch cash put into that,and it might be better to get something from an inferior pension scheme than nothing from a better scheme.

They can't touch the pension you've already built up, however they can change future accruals.

the scheme has has 3 major changes since then.

In 2008 the final salary scheme was closed and replaced a average salary one. There are currently proposals that form part of the pay talks and possible industrial action that make occur soon. What are the other 2 changes?

No one in my office has a clue whats going on and since it was RM who never paid in to the scheme for 15 years and caused the government bailout,we don't have a lot of trust either.

I thought it was 13 years and I think increased longevity and poor investment management was equally to blame.

suitable69

Ok I will answer why I was asking this question.
Im just a worried postie.
I have spoken to a few ex posties who have said when they retired the pension package was awful and it just got me thinking.
Royal Mail got us in the mess in the first place with bonuses for bosses buying bad businesses when the last government gave them a prension break.
Also with privatization on the horizon and with also Royal Mail saying they will not touch our contracts, rights etc for three years and cant give anyone promises whats gonna happen after the three years (24 hour contracts, sold off to a foreign owner who couldn't care less about its workers and public it serves) it got me worried whats gonna happen to my pension.
Im not stupid I was asking a general question because im no financial advisor after all :rotfl:
Anyway thanks for the advice and info.

quotememiserable

Well, your pension to date was taken over by the government, so its no longer dependant on what RM does. I'm confused that your colleagues told you the pension was awful, when its one of the best in the world. I guess if they were low wage earners or only worked for RM for a short time....even then it would be magic compared to what they paid in.

dunstonh

I have spoken to a few ex posties who have said when they retired the pension package was awful and it just got me thinking.

They dont have a clue. Their pension was great for the money they paid towards it. Perhaps those ones didnt have many years in service.

suitable69

One postie in particular passed it over to his sons wife who is a financial adviser and she said it was shocking for 15 years service, lump sum and pension etc

Drp8713

How could it be? Its a final salary pension. If its not worth much it is either because they didnt work many hours or their pay was really low, in both cases that means they wouldnt have paid much in.

Dont listen to her financial advice even of its free if thats the kind of rubbish shes saying. She probably thought the annual pension amount was a fund value

suitable69

He was full time and our salary has never been great (over worked under paid :rotfl:)

Cheers