4. What would happen to benefits I’ve already built up?
Here’s what happens to benefits you’ve already built up
Would I still be able to take benefits from my current plan early? Yes. Benefits or savings that you’ve built up in RMPP or RMDCP would be paid according to the rules of those plans. Both of these plans let you take them early.
Frequently asked questions
The benefits you’ve already built up are separate from those you would build up in the Collective Plan and can be taken separately. This is how they would increase until you take them.
RMDCP
Your pension savings will remain invested as they are now until you take them or transfer them to another pension arrangement.
There will be no change to:
- how your money is invested
- your Selected Retirement Age
- your options for taking benefits
RMPP
Benefits built up will be there for you when you retire, unless you transfer them to another pension arrangement.
This proposal would not change the Normal Retirement Age for these benefits which is:
- 60 for benefits built up before 1 April 2010
- 65 for benefits built up after 1 April 2010
This proposal would not change your options for taking these benefits, including the options to:
- convert pension into lump sum
- take Age 60 benefits separately from Age 65 benefits
This proposal would not change the way benefits built up after 1 April 2012 increase
- Benefits built up between 1 April 2012 and 2018 – this proposal does not change the way these benefits increase
- Benefits built up after 2018 – these benefits are in the Cash Balance fund. They will increase in the same way as they do now, which is similar to the way benefits increase in the lump sum section of the Collective Plan.
Benefits built up before 1 April 2012 are overseen by the government
Royal Mail is contacting the government to confirm that there would be no change in the way these benefits increase between now and when you take them.
AVCs (Additional Voluntary Contributions) into Flexiplan or Bonusplan
These savings will remain invested for you.