New royal mail collective plan

olb81

I just want to stick to DC plan though... 
It's easy to understand.

Dazed_and_C0nfused

olb81 said:

I just want to stick to DC plan though... 
It's easy to understand.

But missing out on 13% employer contributions is going to be bad for your retirement 😳

QrizB

olb81 said:

I just want to stick to DC plan though... 
It's easy to understand.

You could get the best of both worlds by making the minimum contribution to the RM scheme to get the 13% employer contribution, then put any additional payments into your DC SIPP.

olb81

How to get the money out of the RM scheme though if its pooled with everyone else?

LHW99

olb81 said:

How to get the money out of the RM scheme though if its pooled with everyone else?

I don't know the scheme, but while the fund will be pooled for the sake of investment, and as a backstop for paying out, I suspect that there will be a record of what you have invested, and knowledge of the proportionate percentage increase in that investment over the years it is invested. Those will feed into an individual transfer value at (say) retirement, or if you move jobs.

dasherman

olb81 said:

How to get the money out of the RM scheme though if its pooled with everyone else?

As I said in an earlier post, you can get a transfer of your share of the overall pot and move that into a DC scheme.
All the info is on the RMCPP website, pay particular attention to the Handbook.

DRS1

olb81 said:

How to get the money out of the RM scheme though if its pooled with everyone else?

The pooling with everyone else is not the issue - the issue will be the lump sum benefit being guaranteed.  As mentioned above it may be you would need to do a partial transfer.  But you should only worry about that if you stop working for Royal Mail (or whatever it calls itself now).

hugheskevi

DRS1 said:

olb81 said:

How to get the money out of the RM scheme though if its pooled with everyone else?

The pooling with everyone else is not the issue - the issue will be the lump sum benefit being guaranteed.  As mentioned above it may be you would need to do a partial transfer.  But you should only worry about that if you stop working for Royal Mail (or whatever it calls itself now).

Worth noting this page, which states:

4. Pension benefits which are not safeguarded

4.1 Guaranteed lump sums

Pension benefits which offer a guaranteed lump sum but no guarantee about the rate of income that may be provided are not safeguarded. For example, death benefits which promise a lump sum on the member’s death are not safeguarded benefits.

Based on the above, I'd expect that as there is no guaranteed income, only a guaranteed lump sum, that none of the benefits would be safeguarded benefits.

hyubh

olb81 said:

How to get the money out of the RM scheme though if its pooled with everyone else?

You could say the same about a funded DB scheme (i.e. any private sector DB scheme, LGPS, etc.) - pooling in itself doesn't block transferring out.

That said, just because you can argue that CDC involves no intrinsic benefit to the individual doesn't mean it's a poor scheme, and certainly doesn't imply you should opt out.

olb81

Just something I noticed...
My standard life and Scottish widows were both about 10k a couple of years ago.
I changed my SL fund to vanguard global ex uk
I left SW with the RM 10 year life cycle fund
Now SL is on 18k and SL only 13k!