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Hello<Title> <Surname>See the current value of your pension benefits Your 2020 Royal Mail Statutory Pension Scheme current value statement Section C
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I am pleased to provide details of the value of your Royal Mail Statutory Pension Scheme (RMSPS) benefits as at 1 April 2020.<variable text for joint members only Some changes to your current value statement
Following the transfer of the administration contract for the RMSPS to Capita, you now receive two statements. This one covers your benefits in the RMSPS. These were earned before 1 April 2012. Benefits you built up from 1 April 2012 are held in the Royal Mail Pension Plan (RMPP). The Trustee of the RMPP will send to you a separate illustration for these benefits. You can find out more about the RMPP at www.royalmailpensionplan.co.uk>
In this statement you will find details of the current value of your Normal Retiring Age (NRA) 60 benefits. These are benefits which relate to service up to 31 March 2010 and which are subject to an NRA of 60. If you have taken these benefits, there will not be any figures shown in that section.
You will also find details of the current value of your NRA 65 benefits which relate to service from 1 April 2010 until 31 March 2012 or your date of leaving if earlier, and which are subject to an NRA of 65. If you have already taken these benefits, there will not be any figures shown in that section.
This statement also provides you with details of pension benefits payable to a surviving spouse or civil partner, in the event of your death.
Please check these details carefully and contact Capita (the Scheme administrator), if you think any of the information may be incorrect. Their contact details are available on the back of this statement.
Dominic ArthurScheme Manager for the Royal Mail Statutory Pension Scheme
Your 2020 current value statement
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This statement provides you with an estimate of what your benefits may be at retirement.
You can take your Normal Retiring Age (NRA) 60 benefits without reduction when you reach age 60 and your NRA 65 benefits without reduction when you reach age 65. You do not need to take your NRA 60 and NRA 65 benefits at the same time though. The earliest you can take your benefits is age 55. If you take your benefits early your benefits are reduced to reflect the early payment. There is no such age limit or reduction if you qualify for early payment on ill-health grounds.
Instead of keeping your benefits with us, you may be able to transfer them to another defined benefit occupational pension arrangement. You should ensure you get independent financial advice and aim to contact us at least six months before your benefits are due to be paid. This is because it may take some time to complete a transfer and you cannot postpone payment of benefits beyond the relevant NRA.
www.royalmailsps.co.uk2020 current value statement
Your estimated pension at retirement
442020 current value statement
Basic annual pension <Field 10>
Pensionincrease amount
<Field 12>
Current value of annual pension**<Field 13>
Current value of annual pension for surviving spouse/civil partner**
<Field 16>
Basic annual pension for surviving spouse/civil partner***
<Field 14>
Pension increase amount<Field 15>
+ =
+ =
Notes:*The pension supplement will only be payable if you have ceased employment with Post Office Limited or Royal Mail Group.
**Pension values are reviewed each year in accordance with the provisions of the Rules. It is not possible to forecast the value of benefits at a future date.
*** Surviving spouse/civil partner’s pension means the annual pension that a surviving spouse or civil partner will receive. A dependant may receive a pension benefit at the discretion of the Scheme Manager of the Royal Mail Statutory Pension Scheme.
Calculation of benefitsWe will write to you as you approach 60 and/or 65 and let you know the amount of your benefits due for payment.
For reckonable service before 1 April 2008, the basic annual pension is based on 1/60th of your final pensionable pay for each year of reckonable service. For reckonable service on and from 1 April 2008, your pension will have built up year by year by an amount equal to 1/60th of your pensionable salary for that year. Each year, any pension you had built up over previous years would have been revalued in line with the annual increase in the Retail Price Index (RPI) to a maximum of 5% and a minimum of 0%. <If not an RMPP active member - Once you left the scheme, the pension benefits you had built up were revalued each year in line with the annual increase in the Consumer Price Index (CPI) up to a maximum of 5%.> <If active RMPP member - While you are a contributing member of the Royal Mail Pension Plan, the pension benefits you built up continue to be revalued each year in line with the annual increase in the Retail Price Index (RPI) up to a maximum of 5%.> The surviving spouse/civil partner’s pension is based on up to half of your own pension.
At retirement you can also choose to give up some pension in exchange for a tax-free lump sum. You will be given more information about these options and the effect these might have on your pension benefits when you get closer to your Normal Retiring Age.
The diagram below shows you how your pension is made up.
Current value of your benefits as at 1 April 2020 - Normal Retiring Age 60 benefits
Annual pension supplement (payable until your State Pension age)*
<Field 11>+
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Notes:
*The pension supplement will only be payable if you have ceased employment with Post Office Limited or Royal Mail Group.
**Pension values are reviewed each year in accordance with the provisions of the Rules. It is not possible to forecast the value of benefits at a future date.
*** Surviving spouse/civil partner’s pension means the annual pension that a surviving spouse or civil partner will receive. A dependant may receive a pension benefit at the discretion of the Scheme Manager of the Royal Mail Statutory Pension Scheme.
Current value of your benefits as at 1 April 2020 - Normal Retiring Age 65 benefits
www.royalmailsps.co.uk2020 current value statement
See pages 9 and 10 for a glossary of pension terms and what they mean.
Basic annual pension <Field 22>
Pensionincrease amount
<Field 24>
Current value of annual pension**<Field 25>
Current value of annual pension for surviving spouse/civil partner**
<Field 28>
Basic annual pension for surviving spouse/civil partner***
<Field 26>
Pension increase amount<Field 27>
+ =
+ =
Annual pension supplement (payable until your State Pension age)*
<Field 23>
+
5
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Tax on your pensionWhen your pension comes into payment, it will be taxed at source through Pay As You Earn (PAYE). Your pension will also be assessed against the Lifetime Allowance.
Lifetime AllowanceWhen it is time to pay your benefits, if the total value of all your pension benefits are more than the Lifetime Allowance of £1.073 million, you may be subject to a tax charge. Most people are unlikely to go over this allowance.
If you are worried that you may be close to the Lifetime Allowance, you can ask us how much the current value of your pension compares to the Lifetime Allowance.
Benefits paid when you dieWe will pay a lump sum if you die before you start receiving your Royal Mail Statutory Pension Scheme (RMSPS) pension. We will also pay a lump sum if you die up to five years after you started receiving your pension benefits. The amount will depend on your circumstances. A pension may be payable to your spouse, civil partner or to someone who is financially dependent on you.
To understand in more detail what would happen to your benefits in the event of your death, you should read the booklet ‘Benefits payable when you die – For Section C members’, available to download at www.royalmailsps.co.uk/support/useful-documents or by contacting the Scheme administrator on 0333 222 0078.
Based on your circumstances as at 1 April 2020, your death benefits are shown below.
An annual pension of: <53> See pages 9 and 10 for a glossary of pension terms and what they mean.
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Have you told us of your wishes?In the event of your death the RMSPS may pay a pension to a named beneficiary, subject to certain requirements, and it may also provide a lump sum payment in certain circumstances.
The pension can be paid to a spouse/civil partner or a dependant. You can let us know who you would like to receive a pension by completing a ‘Dependant’s pension nomination form’. Forms are available to download from the scheme website www.royalmailsps.co.uk/support/useful-documents
Your lump sum will automatically be paid to various beneficiaries, including people nominated by you. The lump sum will not form part of your estate and so, under current law, is generally not subject to Inheritance Tax. You can change your nominations by completing a ‘Lump sum death benefit nomination form’ for Section C which can be downloaded at www.royalmailsps.co.uk/support/useful-documents
You can find out more about your death benefits by reading ‘Benefits payable when you die - For Section C members’ which you can find on the Scheme website www.royalmailsps.co.uk/support/useful-documents
We take your most recent nominations into account when paying any death benefits, but the Scheme Manager has the final decision on who receives any death benefit.
2020 current value statement
Get your pension information onlineDon’t forget that you can now also update your death benefit nomination online if you go to www.royalmailsps.co.uk and sign up for the online portal.
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Your personal details at 1 April 2020These are the details we hold for you. Please check these details carefully and contact the administration team if these are not correct as it will affect the illustration of your benefits. You can also update your personal details on the pensions portal. Sign in by clicking the button on www.royalmailsps.co.uk
Membership number: <7>
Date of birth: <9>
Date you joined the RMSPS: <13>
Date your Normal Retiring Age 60 benefits are payable (this is your 60th birthday): <11>
Date your Normal Retiring Age 65 benefits are payable (this is your 65th birthday): <12>
Please note: Your total reckonable service before 1 April 2018 is limited to 45 years.
See pages 9 and 10 for a glossary of pension terms and what they mean.
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Date you left the RMSPS: <DLS>
Final pensionable pay: <FPP>
Total service: <TOTSERV>
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Glossary of pension terms
Annual pension supplement You may receive a pension supplement until you reach State Pension age (SPA) if this is after your Normal Retiring Age. You will only receive this supplement while you are not working for Royal Mail or the Post Office Limited. You can find out more information about the annual pension supplement in your ‘Guide to benefits - For Section C members’ at www.royalmailsps.co.uk/support/useful-documents
Final pensionable payThis is the pay used to calculate benefits you built up before 1 April 2008. It is based on your pay at the time you stopped building up benefits in the Royal Mail Statutory Pension Scheme (RMSPS). Any additional benefits that you may receive as a result of pay increases after 1 April 2012 are paid by the Royal Mail Pension Plan (RMPP).
Guaranteed Minimum Pension (GMP)The RMSPS was contracted out of the Additional State Pension (S2P or SERPS). This means that the RMSPS must provide a minimum pension for any service from 6 April 1978 to 5 April 1997. This minimum pension is the GMP.
Lifetime AllowanceThe Lifetime Allowance is a limit on the total amount of pension benefit that can be drawn from all of your pension schemes without triggering an extra tax charge - whether lump sums or retirement income. The test for the Lifetime Allowance is done each time you access a pension benefit.
Normal Retiring Age (NRA) 60 benefitsThe benefits you earned before 1 April 2010. You would normally start taking your NRA 60 benefits at 60, but you can choose to take them as early as 55.
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NRA 65 benefitsThe benefits you earned from 1 April 2010. You would normally start taking your NRA 65 benefits at 65, but you can choose to take them as early as 55.
Pension increases in paymentYour pension is increased each year in accordance with the Scheme rules. The Scheme increases are as follows:
The part of your pension which is not Guaranteed Minimum Pension (GMP) will be increased each year by the annual increase in the Retail Price Index (RPI) over the preceding year, to a maximum of 5%.
GMP is the pension you earned in place of the additional State Pension between April 1978 and April 1997. GMP increases are only paid once you are aged 60 (if you are a woman) and aged 65 (if you are a man). We will pay increases of up to 3% per year on GMP earned between April 1988 and April 1997. If you started taking your State Pension before April 2016 then the government will also pay increases on all your GMP. If you reach State Pension after April 2016 then the Scheme is responsible for all pension increases. This will continue until 2021, when the government is due to make a further decision on the future of GMP.
Reckonable serviceThis is the number of days and years used to work out your pension benefits. It includes days and years:
– that you were contributing to the scheme
– you have bought to top up your pension using Addplan
It also includes any benefits you have moved into the Scheme from other pension schemes. If you have opted out of the Scheme for a period of time, your reckonable service does not include this time. The maximum reckonable service we use to calculate your benefits is 45 years.
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About this statement
This statement shows the total amounts payable from the Royal Mail Statutory Pension Scheme (RMSPS). It has been prepared for your information only. It carries no right to benefits nor does it form any type of contract.
The calculation and payment of your benefits are subject to the provisions of the Rules of the RMSPS.
Please check your statement carefully and contact us if you have any questions.
Please note:
– This statement does not take account of any pension sharing or earmarking orders made by a court as part of a divorce settlement.
– Any Additional Voluntary Contributions that you may have paid to Flexiplan are not included; any added years you may have purchased have been included.
– The benefits shown in this statement are in addition to any State Pension you may be entitled to.
– We hold certain personal information about you and comply with the General Data Protection Regulation (effective 25 May 2018) which has the purpose of protecting all European Union citizens from privacy and data breaches. You can read a full copy of our privacy notice on the website www.royalmailsps.co.uk/privacy-policy
– You should keep this current value statement for your records, as there will be a charge if you want an additional copy.
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You can find an online version of your current value statement on the portal. Go to www.royalmailsps.co.uk to find out how to register and sign in.
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Any questions?
If you have any questions or need more information, you can contact us using the details below.
Email us: [email protected]
Write to us: Benefit Illustration Royal Mail Statutory Pension Scheme PO Box 551 Darlington DL1 9TX United Kingdom
Or call: 0333 222 0078
Please quote your full name, date of birth and either your National Insurance number or membership number when you write or call. If you call us as soon as you receive this statement, you may find our lines are busy. Please be patient with us while we get around to answering your call.
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