15 December 2019
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The Royal Mail Pension Plan (RMPP) FAQs

Have Sections B and C of the RMPP now closed to accrual on a Career Salary DB basis?

Yes. Unfortunately we had to announce that, following Trustee approval, the RMPP would close to future accrual in its current form on 31 March 2018. This was a very hard decision to make. But the increase in the cost of keeping RMPP open in its previous form means it was just not affordable. If we didn’t make changes, contributions were expected to increase from around £400 million to £1.26 billion per annum.

What happens to the benefits members had already built up under the RMPP until 31 March 2018?

RMPP members’ benefits built up until April 2012 are backed by Government. Benefits built up between 1 April 2012 and 31 March 2018 are backed by the RMPP’s assets. Those benefits will remain in the RMPP. RMPP members can get those benefits when they come to take their pensions.

How can I find out if I am a member of the RMPP?

You can find out if you are a member of the RMPP by looking at your payslip. RMPP members will see the code “RMPP DBCBS C” or “RMPP DBCBS A/B” alongside their PSE pension deduction on their payslip.

How were RMPP members’ benefits revalued from 1 April 2018?

From 1 April 2018, Section C members’ pre-April 2008 benefits are linked to increases in RPI (up to 5% a year) from that date until they leave Royal Mail employment or take their benefits, rather than to Final Salary pensionable pay at the date they leave.

These benefits will be increased in line with the Retail Price Index (up to 5 per cent a year), subject to certain exceptions.

  • Benefits between 1 April 2012 and 31 March 2014 include Career Salary Defined Benefit, Normal Retirement Age of 65 and ongoing Final Salary link from 1 April 2012
  • Benefits between 1 April 2014 and 31 March 2018 include Career Salary Defined Benefit, Normal Retirement Age of 65, increases in basic pensionable pay (Final Salary and Career Salary Defined Benefit) capped at Retail Price Index up to 5 per cent per annum

Section A/B members’ pre-April 2008 benefits continue to be linked to the greater of:

  • increases in RPI (up to 5% a year) and;
  • Final Salary pensionable pay at the date they leave.

The Final Salary link is required under the Section A/B rules in order to maintain increases at RPI (up to 5% a year) in the Royal Mail Statutory Pension Scheme. This is not a requirement under the Section C rules. 

For more details on how Final Salary pensionable pay is calculated, please see the decision booklet on the 2014 pension changes.