Guide to Benefits - Royal Mail Pension Plan

 
 
B1
                     Guide to
                     Benefits

     For Section
     A/B and C members
     This guide contains an overview of the Section
     A/B and C benefits of the Royal Mail Statutory
     Pension Scheme (RMSPS) and the Royal Mail
     Pension Plan (RMPP).

Royal Mail
Statutory Pension Scheme                              Royal Mail Pension Plan
Introduction
      Contents
                                                                                       This guide explains the benefits you get    Employees are notified by Royal Mail
      Introduction                                                         3           as a member of the Royal Mail Pension       when they are about to be eligible to
                                                                                       Plan (the RMPP).                            join the RMPP – this notification includes
      Who is this Member Guide for?                                        3                                                       a form for members to complete and
                                                                                       Membership of the RMPP continues
      The 2012 Pension Transfer			                                         3                                                       return if they wish to opt out of the
                                                                                       to be open to Royal Mail employees
      Your pension benefits up to 31 March 2018 – Section B		              4                                                       RMDCP and join the RMPP.
                                                                                       who started work for Royal Mail
      Your pension benefits up to 31 March 2018 – Section C 		             6           before 1 April 2008. With effect from       The transfer in of benefits, from
      Your benefits built up from 1 April 2018		                           9           1 April 2018, membership of the RMPP        the RMDCP or elsewhere, is not
                                                                                       is open to Royal Mail employees who         generally permitted.
                                                                                       have at least five years’ service with
      Cash Balance section                                                10
                                                                                       the Company including four years’
      Overview                                                            10           continuous service at the standard
      Contributions		                                                     10           contribution rate in the Royal Mail
                                                                                       Defined Contribution Plan (the RMDCP).
      How Cash Balance works                                               11

      Benefits 		                                                         12           Who is this
      Benefits paid on ill health or death                                13           Member Guide for?
      Leaving the RMPP                                                    15
                                                                                       This guide is for you if you joined the RMPP
      When it’s time to pay your benefits                                 18
                                                                                       prior to April 2018 and you are either a member
      Your pension benefits and tax                                       19           paying into the RMPP and building up benefits
      Other useful information and common questions                       20           (‘Employee members’) or you have left since
      Data Protection                                                     22           1 April 2018 but not yet taken your benefits.

      Complaints                                                          23

                                                                                                                                   The RMSPS looks after and pays the
      The State Pension                                                   24           The 2012 Pension                            benefits built up by members of the
                                                                                       Transfer                                    RMPP before 1 April 2012. The RMPP
      Glossary of terms                                                   25                                                       is responsible for paying your benefits
                                                                                       Responsibility for looking after and
                                                                                                                                   which continued to build up on and
                                                                                       paying your pension benefits is shared
      Contact information		                                               29                                                       from this date. Whilst we expect you will
                                                                                       between Government and Royal Mail.
                                                                                                                                   eventually receive part of your benefits
      Pensions Service Centre                                             29           That’s because the Government set
                                                                                                                                   from the RMSPS and part from the
      Other useful contacts                                               30           up the Royal Mail Statutory Pension
                                                                                                                                   RMPP, the calculation of the separate
                                                                                       Scheme (RMSPS) to take on the
                                                                                                                                   benefit components is designed to
                                                                                       majority of the assets and liabilities
                                                                                                                                   achieve an outcome where the overall
                                                                                       of the RMPP in 2012.
                                                                                                                                   amount will be no less than if the
                                                                                                                                   transfer had not happened.

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You are also entitled to a lump sum          continue to be revalued up to the last
   Your pension benefits up to 31 March 2018                                                         which is linked to the value of your         renewal date before you take your
   – Section B                                                                                       pension. The lump sum is typically           benefits or leave reckonable service.
                                                                                                     three times the total pension from 1
   Royal Mail and the Trustee of the              respect of your reckonable service up                                                           After 2018 (whilst you remain in Company
                                                                                                     and 2 – see page 4.
   RMPP agreed to close the existing              to 31 March 2018. The retirement ages                                                           employment) your final salary pension
   defined benefit within Section B, to the       in Section B are 60 and 65 (depending              The maximum combined pension                 (i.e. related to reckonable service up to
   future build up of benefits, with effect       on the period of service). The way your            in respect of service up to 31 March         31 March 2008) will continue to be linked
   from 31 March 2018. If you originally          pension and tax-free cash built up was a           2018 is equal to that calculated using       to your pensionable salary. Your CSDB
   joined the RMPP before 1 April 1987, you       mixture of a ‘Final Salary’ calculation            a maximum of 45 years’ reckonable            pension blocks and lump sum blocks
   would have been in Section B. A very           (up to 2008) and a ‘Career Salary’ method          service. If you completed more than 45       (for reckonable service from 1 April 2008
   small number of members still in service       since then. Both calculations combine to           years’ reckonable service you would not      to 31 March 2018) will continue to increase
   may have joined before 1 December              provide you with a pension and tax-free            have built up any further pension blocks     in line with inflation as measured by the
   1971. If that’s you, you would have been       cash amount linked to your pay and the             but, provided you continue in reckonable     Retail Prices Index up to a maximum
   in Section A. You’ll have the option to        length of time you were contributing               service, all your pension blocks will        of 5%.
   have your benefits paid under Section B        – up to a maximum of 45 years’ service.
   terms and it will almost certainly be in
   your interest to do so. We‘ll explain the      You can take your benefits without
   differences when we write to you before        reduction on reaching your Normal                  How are my pension blocks and lump sum blocks calculated?
   you take your benefits.                        Retiring Age (NRA) - this is age 60 for
                                                  benefits built up to 31 March 2010 and             For your reckonable service on and after     will be added to the previous years’ blocks.
   Section B will provide you with a pension      age 65 for benefits built up thereafter            1 April 2008, your pension builds up year    When you come to take your pension, the
   and tax-free cash at retirement in             (as shown below).                                  by year. Your pension will be equal to       overall benefit amount will be:
                                                                                                     1/80th of your CSDB pensionable pay
                                                                                                     earned each year (or part year). You will
                                                                                                                                                    The total of all the blocks earned
                   Final Salary                                   Career Salary                      also build up a lump sum benefit each
                                                                                                                                                    while you were in reckonable service.
                                                                                                     year of (typically) three times the value
                         Age60 Benefits                                  Age65 Benefits              of the pension. These are your pension
                                                                                                     blocks and lump sum blocks.
                                                                                                                                                    The revaluation increases while
                                               2008              2010                       2018     Each pension block and lump sum                you were in reckonable service.
                                                                                                     block is revalued at the end of the
                                                                                                     following Plan Year (on the renewal
                                                                                                     date), and thereafter on each subsequent       Any reduction for taking benefits
   The benefits up to 31 March 2018 will be calculated as follows:
                                                                                                     renewal date, for as long as you remain
                                                                                                                                                    before your Normal Retiring Age.
                                                                                                     in reckonable service. They will be
   1. For your reckonable service up                     or your reckonable service on
                                                      2. F
                                                                                                     increased in line with the annual increase
       to and including 31 March 2008:                   and after 1 April 2008:                                                                  The RMPP will pay a sum which is equal
                                                                                                     in the Retail Prices Index (RPI), as at
      our pension is worked out as
     Y                                                  Y
                                                         our pension is calculated as the total                                                  to the overall benefit described above,
                                                                                                     the previous September, subject to a
     1/80th of your pensionable salary                  of your revalued pension blocks earned       maximum of 5% and a minimum of 0%            less what you would have had from the
     for each year (or part year) of                    up to 31 March 2018. You can find out        each year.                                   RMPP if this calculation were done as
     reckonable service completed                       more about how your pension blocks                                                        at 31 March 2012 (plus revaluation). In
     before 1 April 2008.                               are calculated on the next page.             For each year that you remain                addition, the RMSPS will pay a benefit in
                                                                                                     contributing, the pension blocks and         respect of your pre 1 April 2012 service.
                                                                                                     lump sum blocks you build up for that year

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The chart below shows how your pension blocks build up while you are a member
                                                                                                                             Final Salary                             Career Salary
   – assuming that the revaluation increase is 2.5% each year. In practice, the actual
   increase each year will depend on the applicable annual increase in RPI each year
                                                                                                                                    Age60 Benefits                           Age65 Benefits
   subject to a maximum of 5% and a minimum of 0% each year.

 CSDB pensionable pay                                                                                                                                2008            2010                        2018
                                                                                             £326.48
              £26,118 ÷ 80

                                                                                                                                                        If your Normal Retiring Age in
              £621 x 2.5%                                                                     £15.52          The benefits up to 31 March 2018          relation to benefits being taken is
                                                                                                              will be calculated as follows:            before your State Pension age, and you
                                                                                                                                                        choose to take your Age60 pension or
 CSDB pensionable pay                                                                                         1. For your pensionable service up
                                                                          £313.50                                                                       Age65 pension and leave the Company
             £25,080 ÷ 80                                                                                         to and including 31 March 2008:
                                                                                                                                                        before State Pension age, you will also
                                                                                                                Y
                                                                                                                 our pension is worked out as          receive a pension supplement that
             £300 x 2.5%                                                   £7.50             £621.00            1/60th of your pensionable pay          is payable until you reach State
                                                                                                                for each year (or part year) of         Pension age.
                                                                                                                pensionable service completed
 CSDB pensionable pay
                                                         £300.00         £300.00                                before 1 April 2008.                    The maximum combined pension
            £24,000 ÷ 80
                                                                                                                                                        in respect of service up to 31 March
                                                                                                                                                        2018 is equal to that calculated using
                                                         Year 1 Total    Year 2 Total       Year 3 Total                                                a maximum of 45 years’ pensionable
                                                           = £400          = £621             = £963          2. F
                                                                                                                  or your pensionable service
                                                                                                                                                        service. If you completed more than
                                                                                                                 on and after 1 April 2008:
   Key                                                                                                                                                  45 years’ pensionable service you would
                                                              You also build up a lump sum benefit              Y
                                                                                                                 our pension is calculated as the
         Pension built up during year                                                                                                                   not have built up any further pension
                                                              each year, in a similar manner, of                total of your revalued pension
         Revaluation increase on previous years’ total                                                                                                  blocks but, provided you continue in
                                                              (typically) three times the value of              blocks earned up to 31 March 2018.
         Total pension value from previous year                                                                                                         pensionable service, all your pension
                                                              the pension.                                      You can find out about how your         blocks will continue to be revalued
                                                                                                                pension blocks are calculated           up to the last renewal date before
   Your pension benefits up to 31 March 2018                                                                    on page 8.                              you take your benefits or leave
   – Section C                                                                                                                                          pensionable service.

   Royal Mail and the Trustee of the RMPP                  pension built up was a mixture of a ‘Final                                                   After 2018 (whilst you remain in Company
   agreed to close the existing defined                    Salary’ calculation (up to 2008) and a                                                       employment), your final salary pension
   benefit within Section C, to the future                 ‘Career Salary’ method since then. Both                                                      (i.e. related to pensionable service up to
   build up of benefits, with effect from                  calculations combine to provide you with                                                     31 March 2008) and your CSDB pension
   31 March 2018. If you originally joined                 a pension amount linked to your pay and                                                      blocks (for pensionable service from
   the RMPP on or after 1 April 1987,                      the length of time you were contributing                                                     1 April 2008 to 31 March 2018) will
   you would have been in Section C.                       – up to a maximum of 45 years’ service.                                                      continue to increase in line with inflation
                                                                                                                                                        measured using the Retail Prices Index up
   Section C will provide you with                         You can take your benefits without                                                           to a maximum of 5%.
   a pension at retirement in respect                      reduction on reaching your Normal
   of your pensionable service up to                       Retiring Age (NRA) – this is age 60 for
   31 March 2018. The retirement ages in                   benefits built up to 31 March 2010 and
   Section C are 60 and 65 (depending                      age 65 for benefits built up thereafter
   on the period of service). The way your                 (as shown below).

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How are my pension blocks calculated?
                                                                                                CSDB pensionable pay
                                                                                                                                                                                       £436.30
   For your pensionable service on and          The RMPP will pay a sum which is equal                      £26,178 ÷ 60
   after 1 April 2008, your pension builds      to the overall benefit described above,
   up year by year. Every year, on 31 March,    less what you would have had from                           £828 x 2.5%                                                                £20.70
   your pension block for that year is          the RMPP if this calculation were done
   worked out as follows:                       as at 31 March 2012 (plus revaluation).
                                                In addition, the RMSPS will pay a benefit       CSDB pensionable pay
                                                                                                                                                                       £418.00
                                                                                                           £25,080 ÷ 60
     Your CSDB pensionable pay ÷ 60             in respect of your pre 1 April 2012 service.

                                                The following chart shows how your
   For each year that you remain                                                                            £400 x 2.5%                                                 £10.00         £828.00
                                                pension blocks build up while you are a
   contributing, the pension blocks you         member – assuming that the revaluation
   build up for that year will be added         increase is 2.5% each year. In practice,        CSDB pensionable pay
                                                                                                                                                       £400.00         £400.00
   to the previous years’ blocks.               the actual increase each year will depend                  £24,000 ÷ 60

                                                on the applicable annual increase in RPI
   To protect your benefits against inflation
                                                each year, subject to a maximum of 5%                                                                  Year 1 Total   Year 2 Total    Year 3 Total
   during your membership of the RMPP,
                                                and a minimum of 0% each year.                                                                           = £400         = £828          = £1,285
   the pension blocks you have built up
   will be revalued on 31 March in the                                                           Key
   following year in line with the annual
                                                                                                       Pension built up during year
   increase in the Retail Prices Index (RPI)
                                                                                                       Revaluation increase on previous years’ total
   as at the previous September, subject                                                               Total pension value from previous year
   to a maximum of 5% and a minimum of
   0% each year for as long as you remain
   in pensionable service. When you take
   your pension, the overall benefit amount                                                      Your benefits built up from 1 April 2018
   will be:
                                                                                                 Following a consultation run by Royal                   benefits you will be building up from
                                                                                                 Mail with its employees and unions, the                 1 April 2018.
     The total of all the pension
                                                                                                 existing defined benefit sections within
     blocks earned while you were                                                                                                                        The new benefit sections within Sections
                                                                                                 the Section B and Section C of the RMPP
     in reckonable service.                                                                                                                              B and C of the RMPP – provide Cash
                                                                                                 were closed on 31 March 2018 to the
                                                                                                 future build up of benefits. Royal Mail has             Balance benefits with effect from 2018.
                                                                                                 introduced new sections within Sections
                                                                                                                                                         Everyone who was already a member
     The revaluation increases while                                                             B and C where your benefits will build up
                                                                                                                                                         of RMPP and still working for Royal
     you were in reckonable service.                                                             on and from 1 April 2018. They build up in
                                                                                                                                                         Mail automatically joined the new Cash
                                                                                                 a different way from before.
                                                                                                                                                         Balance section (within their existing
                                                                                                 All the benefits you built up before                    Section B or C) on 1 April 2018. If you
     Any reduction for taking benefits                                                           1 April 2018 (as shown above) will be held              don’t do anything, you will stay in this
     before your Normal Retiring Age.                                                            securely in the RMSPS and the RMPP,                     but you can ask at any time to opt out
                                                                                                 to be paid when you reach the Normal                    of membership of the RMPP and to join
                                                                                                 Retiring Age together with the new                      the RMDCP.

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Cash Balance section                                                                                       How does Cash Balance work?
                                                                                                              The Cash Balance section provides you           Trustee) also sets the policy regarding
                                                  contributions (both your own and the
                                                                                                              with a cash sum at age 65 which can be          discretionary increases and may revise it
      Overview                                    Company’s) that were due during your
                                                                                                              used as described in the Benefits section       from time to time. The policy is currently
                                                  absence, based on the pay you would
      The objective of the Cash Balance                                                                       of this guide on page 12. You will build up     to target annual increases in excess of
                                                  have received had you not been absent.
      section is to provide you with a            If you choose to do this, your Cash Balance                 this cash lump sum each year at a rate          inflation as measured by the Consumer
      cash sum at age 65 (and in some             benefit will be treated as having built up                  set by Royal Mail. Currently, the rate is       Prices Index (CPI), with such increases
      circumstances at age 60 too).               over the period you were absent in the same                 19.6% of each year’s CSDB pensionable           capped at a rate of 4% above CPI for each
      You contribute towards this and             way as it would have done if you had not                    pay with further increases to the lump          year. Discretionary increases, if awarded,
      the Company contributes too.                been absent. Reservists have three options                  sum being targeted each year. If the rate       apply each 31 March with the first such
                                                  as set out on the ‘Life Events, Taking a                    at which the cash lump sum builds               discretionary increase expected to apply
                                                  break from work’ page of the website.                       up changes in the future, Royal Mail            on 31 March 2020.
                                                                                                              will notify you. Royal Mail (not the
                                                  Family leave (maternity,
   Contributions                                  paternity and adoption leave)
   You pay 6% of your CSDB pensionable            Pension contributions are not affected      £18,000.00

   pay towards your Cash Balance benefit,         during paid or statutory family leave.      £16,000.00
   so if your pensionable pay is £300 per         This means that both you and the Company£15,000.00
   week then your contribution will be            continue to pay contributions, although
                                                                                              £12,000.00
                                                  your contributions will be based on the
   £300 x 6% = £18 per week.                                                                  £10,000.00                                                             Cash Balance built up in year
                                                  actual pay you receive. Your benefits build
                                                  up in the same way as if you had worked      £8,000.00                                                             Cash Balance increase
   The Company also contributes towards                                                                                                                              over previous year's total
   your Cash Balance benefit (currently           normally throughout your period of leave.    £6,000.00
                                                                                                                                                                     Total Cash Balance
   at the rate of 13.6% of your CSDB                                                              £4,000.00                                                          from previous years

   pensionable pay). The Company may
                                                  Can I pay more than the 6% amount?
                                                                                                  £2,000.00
   decide to vary the member and/or               If you want to save more for your retirement,
                                                                                                     £0.00
   Company contribution rates from time           you can make Additional Voluntary
                                                                                                                   Year 1           Year 2           Year 3
   to time and will notify you if this happens.   Contributions (AVCs). These contributions
                                                  will be invested into your separate AVC
                                                  account. You’ll need to keep the account
   What if I work part-time?                      invested until you take your main benefits.                 Your final Cash Balance benefit at age 65 is the total of each year’s benefit built
   The contributions you pay towards your         You’ll also need to make decisions about
                                                                                                              up and any discretionary increases actually awarded. We’ll show how your fund is
   Cash Balance benefit (and those from           where to invest your AVC account
                                                                                                              building up, in your Benefit Illustration.
   your employer) are based on the actual         (although there is a ‘Lifestyle’ option for
   pay you receive. To put it another way,        members who do not wish to actively
   if you work half the hours of a full-time      manage their AVC investments). You
   employee, your contributions (and the          can download a copy of the ‘Guide to
   Cash Balance benefit) will be                  Additional Voluntary Contributions’ from
   half the amount of theirs.                     royalmailpensionplan.co.uk or you can
                                                  request a copy from the Pensions Service
   What if I am absent from                       Centre; their details are given on the
   work and not being paid?                       back page. You can also pay into other
   If you have a period of unpaid absence         non-Company pension arrangements if
   you may, on your return to work, pay all       you wish, such as a personal pension plan.

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Benefits
   Your Cash Balance section is designed to provide you with a tax-free cash amount                        You can take some of your pension and          You will also have the option of
   when you take pension benefits. We take into account the benefits you built up before                   tax-free cash (built up before 1 April 2010)   taking some or all of your benefits
   1 April 2018, your Cash Balance benefit and any AVC funds in order to work out the                      unreduced when you reach age 60 and            together from age 55 under the
   maximum permitted tax-free cash you can take (this is set by HM Revenue & Customs                       some when you reach age 65 (these are          flexible pension provisions and
   and is generally 25% of the value of your total benefits in the RMPP).                                  what we call Normal Retiring Ages).            remain in employment. Please refer
                                                                                                                                                          to the booklet ‘Flexible Pension: Your
   By putting your Cash Balance benefit (and any AVC funds) towards your tax-free cash                     You will be entitled to receive your           options’ for details of these options.
   entitlement, you may not have to give up so much (or any) of the pension you built up                   benefits unreduced when you reach              A copy can be downloaded from
   before 1 April 2018 to provide tax-free cash.                                                           Normal Retiring Age (NRA). You have            royalmailpensionplan.co.uk or is
                                                                                                           two NRAs as follows:                           available from the Pensions Service
    Section A/B Example
                                                                                                                                                          Centre; their contact details can be
                                                                                                           • F
                                                                                                              or service up to and including
    (a)    Pension                      £6,000pa        Value for LTA purposes:          £120,000                                                         found on the back page of this guide.
                                                                                                             31 March 2010, the NRA is your
           (pre 2018)                                   £6,000 x 20
                                                                                                             60th birthday. These are your                Can I take early retirement?
    (b)    Lump Sum                     £18,000         Value for LTA purposes:            £18,000           Age60 benefits; and
                                                                                                                                                          Depending on the circumstances, and
           (pre 2018)
                                                                                                           • F
                                                                                                              or service on and from 1 April 2010        subject to Company consent, where
    (c)    Cash Balance                 £20,000         Value for LTA purposes:           £20,000            (including your Cash Balance fund),          you retire earlier than the applicable
           (post 2018)                                                                                       the NRA is your 65th birthday.               NRA, you may be able to take early
                                                                                                             These are your Age65 benefits.               payment of your benefits from age 55.
    (d)    AVC Fund                     £2,000          Value for LTA purposes:             £2,000                                                        Your benefits may be reduced to take
           (pre and or post 2018)                                                                          You can take your Age60 benefits               account of early payment.
                                                                                                           without reduction when you reach age
    TOTAL                                                                                £160,000
                                                                                                           60 and your Age65 benefits without
   25% of £160,000 is £40,000. This means that (b), (c), and (d) can all be taken as tax-free cash and     reduction when you reach age 65.
   it also means that the maximum tax-free cash does not require any of the £6,000pa pension in (a)        Benefits in the RMPP must be taken at
   to be given up.
                                                                                                           the same time that the benefits with the
    Section C Example                                                                                      same NRA are taken from the RMSPS.

    (a)    Pension                       £7,500pa       Value for LTA purposes:          £150,000
           (pre 2018)                                   £7,500 x 20                                        Benefits paid on ill health or death
    (b)    Pension supplement            £1,200pa       Value for LTA purposes:           £24,000          Membership of the RMPP provides                Ill Health Retirement
           (pre 2018)                                   £1,200 x 20                                        financial protection for you and               If your employer decides that you are
                                                                                                           your dependants throughout your                no longer able to work because of a
    (c)    Cash Balance                  £50,000        Value for LTA purposes:           £50,000          working life. The following sections           health condition, they may retire you
           (post 2018)                                                                                     give a brief outline of these benefits.        on ill health grounds. In that case, as
    (d)    AVC Fund                      £8,000         Value for LTA purposes:             £8,000                                                        long as you are not already taking your
           (pre and or post 2018)                                                                                                                         Age65 benefits, you’ll get the pension
                                                                                                                                                          and lump sum you’ve built up so far,
    TOTAL                                                                                £232,000                                                         including the actual value of your Cash
   25% of £232,000 is £58,000. This means that (c) and (d) can be taken as tax-free cash and it also                                                      Balance benefit (i.e. not reduced to
   means that the maximum tax-free cash does not require any of the £7,500pa pension in (a) to be                                                         reflect early payment).
   given up.

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Leaving the RMPP
   Death in service benefits                  Dependants’ pensions – for a spouse or        If one of the following events applies     Automatic enrolment
                                              civil partner or, if you are not married      to you then you will stop paying into      If you choose to opt out of the RMPP,
   There may be a cash sum payable
                                              or in a civil partnership, someone who        the RMPP and stop building up any          without leaving Company employment,
   to your dependants when you die.
                                              was financially dependent on you – may        further benefits:                          you will most likely be enrolled into
   The amount of any cash sum payable
                                              also be payable. The pension is up to                                                    the Royal Mail Defined Contribution
   will depend on your circumstances                                                        • You leave Company service;
                                              half of the pension you built up before                                                  Plan (RMDCP) or another registered
   at the time, for example whether:
                                              1 April 2018 including revaluation since      • Y
                                                                                               ou continue in Company service,        arrangement. This is because the law says
   • Y
      ou are still working for the Company   then. Pensions can also be paid to your         but choose to begin receiving your       that employers must offer a workplace
     and contributing to the RMPP;            children, usually until they turn 18.           Age 65 benefits; or                      pension to their employees (unless
                                                                                                                                       certain exceptions apply). For more
   • Y
      ou have begun receiving some           If you were working part-time, the            • Y
                                                                                               ou continue in Company service         information about automatic enrolment,
     or all of your benefits; or              pensionable salary/pensionable pay              but choose to opt out of the RMPP.       including the qualifying requirements,
                                              used in the lump sum death-in-service
                                                                                                                                       visit gov.uk.
   • You have left Company service or        calculation is not adjusted to the            In these circumstances you will be
      chosen to leave the RMPP and so         full-time equivalent. It will be based        entitled to preserved benefits as          What happens to my benefits
      have deferred benefits in the RMPP.     on your actual pensionable salary/            detailed below, or you may have the        if I leave or opt out?
                                              pensionable pay.                              option to transfer your benefits to        You won’t lose the benefits you have
   If you die in service and are not yet
                                                                                            another pension scheme.                    built up while you were working and
   receiving any pension payments, a          You should take the time to complete
   lump sum of four times your pensionable                                                                                             contributing. You will be entitled to a
                                              the relevant direction/nomination of          If you choose to opt out of the RMPP
   salary/pensionable pay at the date of                                                                                               ‘preserved benefit’ (sometimes called
                                              death benefits forms to guide us when         you must give two months’ notice if you
   your death will be paid, plus the actual                                                                                            a ‘deferred benefit’). This simply means
                                              taking decisions about who should             are paid monthly and two weeks’ notice
   value of your Cash Balance benefit                                                                                                  that we work out how much benefit you
                                              receive these benefits.                       if you are paid weekly. You will not be
   (i.e. not reduced for early payment).                                                                                               have earned up to the date you leave
                                                                                            able to re-join the RMPP if you opt out.
   If you leave a spouse, civil partner,      Death benefits are also payable on death                                                 the RMPP and look after it until you
                                                                                            Contact your HR Service Centre if you
   child or other dependant, a further        in deferment and may be payable on                                                       reach Normal Retiring Age when we
                                                                                            wish to opt out.
   two times your pensionable salary/         death in retirement.                                                                     can pay it to you.
   pensionable pay is payable.

14 | royalmailpensionplan.co.uk                                       Member Guide 2018   Member Guide 2018                                        royalmailpensionplan.co.uk | 15
Your preserved benefits will be made up of the following:                                   • If you are over age 55 and we agree
                                                                                                  that you can take your benefits on           You can find out more about
    Benefits built up before                   Benefits built up on and from                      compassionate grounds - for example          transferring your benefits on our
    1 April 2018                               1 April 2018                                       because you have to give up work to          website – including some of the
                                                                                                  be a full-time carer for your spouse,        things you should think about
    Your pension (and tax-free cash for        Your Cash Balance benefit
                                                                                                  civil partner or another close relative      before making any decisions
    Section A/B members)
                                                                                                  or partner – some or all of your             and how to protect yourself
                                                                                                  benefits will be reduced. Please             from scams and ‘unauthorised’
    Your fund arising from paying Additional Voluntary Contributions (AVCs),
                                                                                                  contact the Pensions Service Centre          transfers which can cause you
    if applicable
                                                                                                  for further details.                         to lose your pension benefits
                                                                                                                                               or suffer very high tax charges.
   Section A/B – While your pension and                                                        For each of these circumstances, if the
                                               When will my preserved                                                                          Visit royalmailpensionplan.co.uk
   lump sum related to benefits earned                                                         Trustee/Company agrees that your
                                               benefits be paid?                                                                               for details.
   before 1 April 2018 (excluding AVC funds)                                                   RMPP benefits can be paid early, the
                                               Your Age60 benefits and Age65
   are preserved by us, the part that does                                                     Manager of the RMSPS will pay your
                                               benefits will typically start to be paid
   not relate to the Guaranteed Minimum                                                        RMSPS benefits at the same time.             Charges and how to obtain
                                               when you reach the relevant Normal
   Pension (GMP) will be increased in line
                                               Retiring Age. We’ll write to you                                                             further information about
                                                                                               Can I transfer my preserved
   with Pension Increase (Review) Orders
                                               beforehand to tell you how much your                                                         your benefit options
                                                                                               benefits somewhere else?
   issued by Government. The GMP part                                                                                                       Generally there are no charges levied if
                                               benefits are and explain your options.
   of your preserved benefits will be                                                          Instead of preserved benefits, you can
                                                                                                                                            you ask us to transfer your benefits to
   increased by the RMSPS up to the            You may also be able to take your               ask that a transfer value be paid into
                                                                                                                                            another pension scheme nor are there
   date you take your benefits in line with    preserved benefits before Normal Retiring       another registered pension scheme.
                                                                                                                                            charges if your benefits are paid to you
   regulations relating to GMP.                Age in any of the following situations:
                                                                                               The receiving pension scheme                 by us. We reserve the right to charge
   Section C – Until your pension is paid,                                                     could be:                                    if you request a transfer value within
                                               • A
                                                  s long as you have reached the age
   the part that does not relate to the                                                                                                     12 months of the previous quotation,
                                                 of 55 you can apply to have either your
   Guaranteed Minimum Pension (GMP)                                                            • A
                                                                                                  new employer’s scheme (if they           or if the transfer value request relates
                                                 Age60 or Age65 benefits (or both)
   will be increased in accordance with                                                          allow transfers into their scheme);        to matrimonial proceedings.
                                                 paid early. Any benefits paid before the
   legislation. The GMP part of your             relevant Normal Retiring Age will be          • A
                                                                                                  personal pension scheme; or
   preserved pension will be increased           reduced to take account of the early
   by the RMSPS in line with regulations         payment. If you are 55 or over, you can       • A
                                                                                                  buy-out policy with an                      Further details on those charges,
   related to GMP.                               get an estimate of the value of your            insurance company.                            and about your benefit options,
                                                 benefits by contacting the Pensions                                                           can be obtained from the
   While your Cash Balance benefit is                                                                                                          Pensions Service Centre – their
                                                 Service Centre.
   preserved by us, it remains eligible for                                                                                                    contact details are shown on
                                                                                                  Please note: It is not possible to
   any discretionary increases awarded.        • If you are unable to work because of ill                                                     the back page.
                                                                                                  transfer your pension to another
   Royal Mail’s policy regarding annual           health at any time after you have left          Royal Mail Group/Post Office
   increases is described on page 11.             the RMPP, you can apply to have your            Limited pension scheme.
                                                  benefits paid early. If your application
                                                  is accepted, your benefits will be paid
                                                  without any reduction. You can find
                                                  more information about how to apply
                                                  and the ill health standard that you
                                                 need to meet on our website
                                                 royalmailpensionplan.co.uk.

16 | royalmailpensionplan.co.uk                                         Member Guide 2018    Member Guide 2018                                          royalmailpensionplan.co.uk | 17
When it’s time to pay your benefits                                                        Your pension benefits and tax
   Unless you have already asked us to pay     Ensuring you receive your                      Both the RMSPS and the RMPP                  • You can take a tax-free cash amount
   your benefits early, we will contact you    pension regularly                              are registered pension schemes.                 when your pension starts (up to
   before you reach Normal Retiring Age        We have a responsibility to make sure          The advantages of this are that:                certain limits).
   (60 or 65) to ask you how you would like    that pensions are only being paid to           • Y
                                                                                                 ou normally receive income tax relief    When it is paid, your pension is treated
   to take your benefits. You will normally    people who are entitled to receive them.         on the contributions you pay to the        as income and taxed. The amount of
   have a choice about how much of your        That means that from time to time we             RMPP up to the level of the Annual         tax you pay (if any) will depend on your
   benefits are paid as a regular income       may ask for evidence to help confirm             Allowance (see below).                     individual circumstances at the time such
   (pension) or as a one-off tax-free          that is the case.
   cash amount.                                                                               • Investments in the RMPP build up          as whether you have any other income
                                               Assignment                                        mostly free tax-free, and                 and what tax-free allowances apply.
   Your pension will be paid directly into
                                               Generally, benefits may not be assigned
   your bank or building society on the last
                                               by you to anyone else and they cannot be
   working day of each month. We expect                                                       Annual Allowance                             Lifetime Allowance
                                               used as security for loans. If any attempt
   that you will receive two payments – one
                                               is made to assign a benefit, the benefit       The Annual Allowance is a limit to the       The Lifetime Allowance is the maximum
   from the RMSPS and one from the RMPP
                                               will cease to be payable. There are            total amount of benefits that you can        amount of pension savings you can build
   – the total of which will be your overall                                                                                               up over your lifetime which can receive
                                               occasions where the law may override           build up (or contributions you can pay)
   pension entitlement each month. Before                                                                                                  tax relief. It is set by government and
                                               this rule, for example, on divorce (or         each year, for tax relief purposes. The
   you begin receiving your pension, we                                                                                                    reviewed regularly. It is set at a high level,
                                               dissolution of a civil partnership) where      Annual Allowance applies across all of
   will send you details so you know what                                                                                                  so it is unlikely that most members of
                                               courts can require that part of a pension      the schemes you belong to (if you pay
   amounts you can expect to receive.                                                                                                      the RMPP will be affected by it.
                                               is paid to a former spouse/civil partner.      into schemes other than just the RMPP)
                                                                                              and includes all of the contributions that   Pension benefits need to be valued at
   When you start to receive your pension
                                               Don’t lose your entitlement                    you or your employer pays. The limit is      certain times – this will usually only be:
   we will send you a copy of the guide
   ‘Your pension payments and increases        It’s very important to keep the                set by the Government and sometimes          • When you start to receive your
   – Section A/B members’ which contains       administrators informed if you move            changes, in the Budget for instance.            pension/tax-free cash; and
   more information about how pensions         house. As explained above, we may
                                                                                              The vast majority of members will not        • If any lump sum is paid in the event
   are increased during payment.               contact you from time to time to confirm
                                                                                                                                              of your death.
                                               your continued entitlement to a pension.       have to worry about exceeding the
                                               Also we send you important information         Annual Allowance and there are ways to       Broadly speaking, the annual pension
                                               about your pension each year. If post is       reduce the impact or use your pension        you have built up is multiplied by 20
      Further detail is also                                                                  benefits to offset any tax that might        and added to the tax-free cash you are
                                               returned to us marked ‘gone away’ or
      available on our website                                                                apply if you do exceed it.                   entitled to in order to arrive at the ‘capital
                                               ‘not known’ and we can’t trace you, your
      royalmailpensionplan.co.uk.                                                                                                          value’. Provided this is within the Lifetime
                                               pension may be suspended until you get
                                                                                                                                           Allowance at the time, there will be no
                                               in touch. If any of your pension payments
                                                                                                                                           additional tax charges – the examples on
                                               have been suspended for more than six                                                       page 12 illustrate this.
                                               years, they may be forfeited.

                                                                                                 You can find out more information about the Annual Allowance and the
                                                                                                 Lifetime Allowance – including what the current limits are – on our website
                                                                                                 royalmailpensionplan.co.uk.

18 | royalmailpensionplan.co.uk                                        Member Guide 2018    Member Guide 2018                                           royalmailpensionplan.co.uk | 19
Other useful information and common questions
                                               The RMSPS and the RMPP each appoint            Changes to your                              How does divorce or dissolution
                                               an administrator which is responsible for      personal circumstances                       of a civil partnership affect
      Here is some useful information
                                               the day-to-day activities of calculating                                                    my benefits?
      and some common questions.                                                              It is very important that the Pensions
                                               and paying pension benefits. Their
      Remember – more detail can                                                              Service Centre know if your personal         If you get divorced, or you have a civil
                                               work is monitored regularly by us under
      be found on the website.                                                                circumstances change. If you are still       partnership dissolved, the court can take
                                               contractual arrangements, including
                                                                                              employed and have not yet taken any          account of your pension benefits in the
                                               a service level agreement.
                                                                                              of your benefits, you should notify your     RMSPS and the RMPP in your divorce/
   Who looks after my benefits?                Keeping you informed                           Line Manager or HR Service Centre of any     dissolution settlement by:
                                                                                              changes to your personal circumstances
   The assets of the RMPP (broadly,            Whilst you are an employee who has not                                                      • Offsetting the value of your pension
                                                                                              (e.g. change of name, address or marital
   contributions made by you and by the        taken benefits, we will normally send you                                                      against other assets; or by
                                                                                              status). Your Line Manager or HR Service
   Company, together with investment           a ‘Benefit Illustration’ every year giving
                                                                                              Centre will then be able to ensure that
   returns) are held in trust by the Trustee   you details of the benefits you have                                                        • Sharing pension rights at the time of
                                                                                              your pension records are kept up to date.
   to pay the benefits due to members.         built up (from both the RMSPS and the                                                          divorce/dissolution through a pension
   RMSPS benefits are underwritten by the      RMPP), together with a summary of the          If you are no longer employed by the            sharing order.
   Government and are paid out of general      RMPP Annual Report and Accounts.               Company or if any of your benefits are
   taxation. Both schemes are registered by                                                                                                You should request information from
                                                                                              already in payment then you should
                                               The Trustee’s full Annual Report and                                                        the Pensions Service Centre on the
   HM Revenue & Customs (HMRC) under                                                          inform the Pensions Service Centre of any
                                               Accounts, which includes details of the                                                     value of your pension benefits at the
   Part IV of the Finance Act 2004.                                                           changes (e.g. change of name, address or
                                               RMPP’s general progress and investment                                                      time proceedings for divorce/dissolution
                                                                                              marital status). Their contact details are
   The Trust Deed and Rules of the RMPP        information, is available to download                                                       begin. If you require more information
                                                                                              given on the back page. If the Pensions
   may be amended by the Company               from our website or on request from                                                         about how your pension benefits may
                                                                                              Service Centre cannot contact you or
   and Trustee jointly. The RMSPS is a         the Pensions Service Centre.                                                                be affected by divorce/dissolution and
                                                                                              post is returned from an old address, they
   statutory scheme and its Rules may be                                                                                                   what charges might be payable in
                                               In addition, we may issue other                may not be able to pay your pension.
   amended by Acts or Regulations made                                                                                                     order to comply with any Court Order
                                               communications about matters of                                                             concerning your pension, please contact
   in Parliament.
                                               relevance or interest to members from                                                       the Pensions Service Centre.
   A corporate trustee company –               time to time. These may be posted,
   Royal Mail Pensions Trustees Limited        published via Company communication
   – acts as the Trustee of the RMPP.          channels and/or uploaded to
   Trustee Directors are selected by the       royalmailpensionplan.co.uk.
   Company and members and include
   an independent Chair. A similar
   function in relation to the RMSPS is the
   responsibility of the Secretary of State
   (or those to whom they have delegated
   responsibility for that scheme’s
   management).

20 | royalmailpensionplan.co.uk                                        Member Guide 2018    Member Guide 2018                                          royalmailpensionplan.co.uk | 21
Data Protection                                                                               Complaints
   What information we hold                       A separate privacy notice has been
   and what we do with it                         prepared by the Manager of the RMSPS.          Contact us if you are dissatisfied about the administration of the RMPP, we will try and
   The Trustee holds personal data which                                                         put things right without you needing to use the formal procedure described below.
                                                  The privacy notices are updated from
   you have provided to them. They need
                                                  time to time and you can see the current       The RMPP has a formal internal dispute resolution procedure, which is a two-stage
   this to be able to administer/pay your
                                                  version of each on the Trustee’s website       procedure for dealing with complaints. Details of the dispute resolution procedure
   benefits under the RMPP.
                                                  at royalmailpensionplan.co.uk.                 will be sent to you if you make a complaint about the RMPP or the Pensions Service
   The Trustee (as a ‘data controller’ for data                                                  Centre’s administration of your benefits.
                                                  Alternatively, if you prefer to receive
   protection purposes) is required to look
                                                  a hard copy of these notices, please           If you have a complaint, for stage one, please contact:
   after your personal data in accordance
                                                  contact the Pensions Service Centre.           Head of Pensions & Severance, Pensions Service Centre, PO Box 5863,
   with legal requirements. This means
   that we are responsible for deciding                                                          Pond Street, Sheffield, S98 6AB
                                                  Keeping your information
   what personal information needs to             up-to-date                                     If you are not satisfied with the response, you can appeal to the Trustee of the RMPP
   be processed and the way in which
                                                  It is your responsibility to keep us           – we will issue a Notice of Appeal decision under stage two of the procedure.
   that information is processed.
                                                  up-to-date with any changes to/in
                                                  your personal information, including           The Pensions Ombudsman may investigate and determine any complaint or dispute
   In processing your personal data, we
                                                  your marital status, contact and bank          of fact or law relating to an occupational pension scheme, such as the RMPP.
   may need to pass personal information
   about you, your dependants and other           details. Without this information, there
   members and beneficiaries, to the              may be delays in paying benefits to you
   RMPP’s administrators, auditors, legal         or your dependants.
   advisers, insurers and such third parties
                                                  Future developments
   as may be necessary for the purposes
   of administering the RMPP.                     From 25 May 2018, the General Data
                                                  Protection Regulation (GDPR) came into
   Where to find out more                         force in all EU and EEA member states.
   Full details of the types of personal          Despite the UK’s intention to exit the EU,
   data the Trustee holds, how we use             the Government has confirmed that the
   that information and who we share it           GDPR will apply in the UK from that date.                                                       You will find contact details
   with are set out in our privacy notice.        It has passed the Data Protection Act                                                           for The Pensions Ombudsman
   The privacy notice also sets out your          2018 which incorporates the GDPR into                                                           under the ‘Other useful
   rights in connection with the personal         UK Law and replaces the Data Protection                                                         contacts’ section towards the
   data held about you by the Trustee, and        Act 1998.                                                                                       end of this guide.
   who to contact if you want to exercise
   those rights, make a complaint, or
   generally have any questions.

22 | royalmailpensionplan.co.uk                                            Member Guide 2018   Member Guide 2018                                           royalmailpensionplan.co.uk | 23
Glossary of terms
                                                                                      Age60 benefits/Age60 pension                Company
                                                                                      Benefits in respect of pensionable          Royal Mail Group or any of its subsidiary
                                                                                      service/reckonable service prior            companies which are participating
                                                                                      to 1 April 2010, where the applicable       in the RMPP.
                                                                                      Normal Retiring Age is 60.
                                                                                                                                  CSDB pensionable pay
                                                                                      Age65 benefits/Age65 pension                This is used to calculate benefits related
                                                                                      Benefits in respect of pensionable          to service on and after 1 April 2008.
                                                                                      service/reckonable service on and from      It is equal to:
                                                                                      1 April 2010, where the applicable Normal
                                                                                      Retiring Age is 65.                         • Your basic pay at 1 April 2014 and

                                  The State Pension                                   Additional Voluntary
                                                                                                                                     subsequent increases that the
                                                                                                                                     Company deems to be pensionable,
                                                                                      Contributions (AVCs)
                                  You’ll be able to claim the new State                                                           • Plus (where appropriate) London
                                                                                      Extra contributions you can pay to
                                  Pension (which was introduced on                                                                   weighting, assigned allowances,
                                                                                      increase your RMPP benefits. You may
                                  6 April 2016) if you are a man born on                                                             contributory allowances or other
                                                                                      pay up to a total of 100% of your taxable
                                  or after 6 April 1951 or a woman born                                                              payments that the Company has
                                                                                      pay to the RMPP if you wish (including
                                  on or after 6 April 1953, and provided                                                             stated to be pensionable in your
                                                                                      your normal contributions). If you wish
                                  that you have paid sufficient National                                                             terms and conditions,
                                                                                      to pay significant AVCs, they may have
                                  Insurance contributions. You can find               to be restricted to make sure that any      • Minus, for members of Section C,
                                  out your State Pension age, and an                  normal regular deductions can be              the indexed Lower Earnings Deduction
                                  estimate of the amount that you will                made from your earnings. Details of           applying. (For a full-time employee
                                  receive at gov.uk.                                  the AVC arrangements are included             this is £3,328 increased each April
                                                                                      in the Guide to Additional Voluntary          with effect from 1 April 2014 by the
                                                                                      Contributions which can be downloaded         increase in the Retail Prices Index for
                                                                                      from royalmailpensionplan.co.uk               the 12 months up to the preceding
                                                                                      or requested from the Pensions                September. Each annual increase is
                                                                                      Service Centre.                               limited to 5%.)

                                                                                      Civil partner
                                                                                      One of a same sex couple with rights
                                                                                      conferred via registration in accordance
                                                                                      with the Civil Partnership Act 2004.

24 | royalmailpensionplan.co.uk                                 Member Guide 2018   Member Guide 2018                                         royalmailpensionplan.co.uk | 25
Glossary of terms cont...
   Ill health                                    he has delegated responsibility for           The maximum combined pension                    in any three consecutive tax years in the
                                                 management of the RMSPS.                      supplement permitted is a pension               last 10 years before you leave service, take
   Serious physical or mental ill health (not
                                                                                               which would be equal to that calculated         your benefits or die. Where a calculation
   simply a decline in energy or ability) such   Minimum Pension Age (MPA)                     using the maximum of 45 years,                  year or tax year other than that which
   that in the opinion of the Company you
                                                 The earliest age at which you are able        pensionable service.                            ends on your last day of reckonable
   are permanently incapable of; carrying
                                                 to begin receiving your pension benefits                                                      service is used, pensionable pay will
   out your current duties, carrying out                                                       Pensionable pay
                                                 (except on ill health retirement where                                                        be increased to take account of the
   such other duties as the Company might
                                                 there is no minimum age). The MPA is 55;      This is used to calculate the part of           intervening period.
   reasonably expect you to perform for
                                                 prior to 6 April 2010 it was 50).             Section C members’ pension benefits
   it, and engaging in employment with
                                                                                               that relate to service before 1 April           If you work part time, the pensionable
   any other employer of a type which in         Normal Retiring Age (NRA)                     2008. It is your basic pay at 1 April 2014      pay used to calculate your benefits for
   the opinion of the Company would be
                                                 In relation to pensionable service/           and subsequent increases that the               pension purposes but not for lump sum
   reasonable and appropriate for you.
                                                 reckonable service before 1 April 2010,       Company deems to be pensionable,                death in service purposes will first be
   However, if you became entitled to            this is your 60th birthday. In relation       plus any pensionable allowance, minus           adjusted to its full time equivalent.
   preserved benefits and you were in            to pensionable service/reckonable             the Indexed Lower Earnings Deduction
                                                                                                                                               When calculating the lump sum
   pensionable service on 31 March 2000,         service after that date this is your          applying (which for a full-time employee
                                                                                                                                               death in service benefit, pensionable
   ill health means; for a Section A/B           65th birthday.                                is £3,328 increased each April with effect
                                                                                                                                               pay is not reduced by the Lower
   member physical or mental disablement                                                       from 1 April 2014 by the increase in the
                                                 Pension supplement                                                                            Earnings Deduction.
   which permanently prevents you from                                                         Retail Prices Index for the 12 months
   providing regular and efficient service       An additional amount of pension               up to the preceding September). If you          Pensionable salary
   in your post, for a Section C member          calculated as follows:                        work part-time, the pensionable pay in
                                                                                                                                               This is used to calculate the part of
   physical or mental incapacity that                                                          respect of a calculation year – i.e. any year
                                                 • F
                                                    or your pensionable service up to                                                         Section A/B members’ pension benefits
   prevents you from following your normal                                                     within the last three, providing it ends
                                                   and including 31 March 2008, 1/60th of                                                      that relate to service before 1 April 2008
   occupation or seriously impairs your                                                        on the last day of reckonable service
                                                   the lower earnings deduction over the                                                       and the lump sum death benefit paid
   earning capacity.                                                                           or a date which is 91 days or up to eight
                                                   period during which final pensionable                                                       to your dependants if you die whilst still
                                                                                               multiples of 91 days) before the last day
                                                   pay is calculated (with an additional                                                       working for the Company. It is your basic
   The Company’s decision as to whether                                                        of reckonable service – used for pension
                                                   pro-rata amount for part years)                                                             pay and London allowance at 1 April
   you are in ill health will be final.                                                        purposes but not for lump sum death
                                                                                                                                               2014 and subsequent increases that the
                                                 • F
                                                    or your pensionable service on            in service purposes will first be adjusted
   Confirmation will be required from a                                                                                                        Company deems to be pensionable, plus
                                                   and after 1 April 2008, the sum of the      to its full-time equivalent.
   registered medical practitioner that you                                                                                                    any pensionable allowance, in whichever
   are (and will continue to be) incapable         supplement blocks that have built up                                                        of the last three years of reckonable
                                                                                               When calculating pension benefits and
   of carrying on your occupation because          for your pensionable service between                                                        service gives the highest amount. It
                                                                                               lump sum death in service benefits,
   of physical or mental impairment. In            1 April 2008 and 31 March 2018. The                                                         is adjusted to the full-time equivalent
                                                                                               we use your highest pensionable pay
   addition, if you are under 55 when you          supplement block for each Plan Year                                                         during periods of part-time employment
                                                                                               for any calculation year – i.e. any year
   apply for a pension on ill health grounds,      is calculated at the renewal date as                                                        unless otherwise stated. Where it would
                                                                                               within the last three, providing it ends
   you must have ceased carrying on                1/60th of the lower earnings deduction                                                      give you a higher amount, your average
                                                                                               on the last day of reckonable service
   your occupation.                                (reduced appropriately for any period                                                       annual pensionable salary plus other
                                                                                               or a date which is 91 days or up to eight
                                                   that you worked part time or if you had                                                     pensionable payments over the best
                                                                                               multiples of 91 days) before the last day
   Manager                                         any periods of non-reckonable service                                                       three consecutive tax years in the last
                                                                                               of reckonable service – or, if greater the
   The Secretary of State or those to whom         during the Plan Year concerned).                                                            ten years will be used.
                                                                                               highest average of your pensionable pay

26 | royalmailpensionplan.co.uk                                          Member Guide 2018   Member Guide 2018                                             royalmailpensionplan.co.uk | 27
Glossary of terms cont...                                                                  Contact information
   Pensionable service                          For Section C members this service
   For Section C members, this is the period
                                                as an RMSPS and/or RMPP member,
                                                service transferred in from other pension
                                                                                              Pensions Service Centre
   of your employment that is taken into
                                                schemes and additional service bought         For further information on the RMSPS or the RMPP, you can contact the Pensions Service
   account when working out your pension
                                                by Additional Voluntary Contributions         Centre using the details below:
   benefits. It is the same as reckonable
                                                (AVCs) or additional Company
   service unless it has been scaled down
                                                contributions. It does not include any
   by reference to your hours because                                                               0114 241 4545 or Postline 5456 4545
                                                periods during which you opted out
   you worked part time. The maximum
                                                of the RMPP.
   pensionable service used to calculate
   pre 1 April 2018 benefits is 45 years.
                                                                                                    pensions.helpline@royalmail.com
                                                Renewal date
   Plan Year                                    31 March each year.
                                                                                                    royalmailpensionplan.co.uk
   1 April to 31 March.                         RMPP
   Preserved benefits                           Royal Mail Pension Plan.                               Pensions Service Centre, PO Box 5863,
   If you leave service (or opt out of          RMSPS                                                  Pond Street, Sheffield S98 6AB
   membership) before Normal Retiring
                                                Royal Mail Statutory Pension Scheme.
   Age, the benefits that you have built
   up will be preserved (otherwise referred     Trustee
   to as ‘deferred’) and will normally be                                                       All booklets are also available to download from the website
                                                Royal Mail Pensions Trustees Limited            royalmailpensionplan.co.uk.
   paid from Normal Retiring Age.
                                                – the organisation that manages the
                                                RMPP in accordance with its Trust Deed          Please quote your full name, date of birth and either your National Insurance
   Reckonable service
                                                and Rules.                                      number or membership number when you write or call.
   For Section A/B members this is the
   service used to work out your pension        ‘We’ ‘Us’ ‘Our’
   benefits. It includes service as an
                                                The Manager of the RMSPS and/or the
   RMSPS and/or RMPP member, service
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