Royal Mail pension

lamby1962

Can anyone help me? My husband has been receiving his pension from Royal Mail since he was medically retired. He is 65 next month and had a letter today from Royal Mail pensions saying he would have money deducted from his monthly pension because he was now 65 and getting his state pension. Is Royal Mail allowed to do this?

Drp8713

Are you referring to a GMP or did he have a bridging pension?


What does the letter actually say? What was he told would happen at state pension age when he retired?


If its in the scheme rules, they can do it.

mania112

I assume he was in receipt of a pension supplement:

Pension Supplement

An additional amount of pension based on pensionable service and the Lower Earnings Deduction. It may be paid in addition to your RMSPS/RMPP pensions but ends when you reach State Pension age. Under the rules of the RMSPS and RMPP, any pension supplement due would not be paid until you stop working for the Company.

The pension supplement is calculated as:

For pensionable service before 1 April 2008:

1/60th of the average Lower Earnings Deduction over the period during which Final Pensionable Pay is calculated, with an additional pro-rata amount for part years.

For pensionable service on or after 1 April 2008

The sum of the supplement blocks that have been built up for your pensionable service after 31 March 2008 (increased in the same way as your pension blocks up to the Renewal date before your last day of service). The supplement block for each Plan Year is calculated at the renewal date as 1/60th of the Lower Earnings Deduction (reduced appropriately if you work part-time or if you had any periods of non-reckonable service during the Plan Year concerned).

The maximum combined pension supplement permitted is a pension which would be equal to that calculated using a maximum of 45 years' pensionable service

kidmugsy

lamby1962 wrote: »

He is 65 next month and had a letter today from Royal Mail pensions saying he would have money deducted from his monthly pension because he was now 65 and getting his state pension.

I wish mine had had that convenient feature. Anyway, he's getting what he's paid for; you surely don't want him to get something he's not paid for?

It's worth asking them what would happen if he deferred his state pension.

jamesd

It's quite common for this type of pension to have a temporary boost to the amount paid between retirement and state pension age. This provides a more even income level. The change is just going back to the normal long term payout for the pension now the time for extra part has finished.