Your options on leaving the RMPP

When you leave Reckonable Service, you will be sent a copy of the guide ‘Your options on leaving the RMPP'.

Preserved benefits
You will be entitled to a preserved (sometimes known as a deferred) pension, which is usually paid from Normal Retiring Age. This preserved pension is increased between the time you leave and the time you retire. The Pensions Service Centre will contact you shortly before your benefits are due, to confirm any options you have. (If you are retiring early, you should make sure that you should contact them.) Please also make sure that you keep the Pensions Service Centre up-to-date with your address details.

You may also be able to retire early voluntarily or because of ill-health. These rules surrounding preserved benefits are quite complicated and you can find out more in the relevant Pensions Brochure for Section A/B.

In the event of death during the period between leaving and starting to receive benefits, an entitlement to death benefits such as a lump sum payment and a dependant's pension usually arises.

Transferring out

Alternatively, instead of keeping your benefits preserved in the RMSPS and RMPP, you may ask for a transfer value to be paid into another registered pension scheme, such as:

  • a new employer's scheme
  • a ‘buy-out' policy with an insurance company
  • a personal pension or stakeholder pension plan.

Please note: it is not possible to transfer to another Royal Mail pension arrangement.

RMSPS and RMPP benefits can be transferred separately, as can the tranches of benefit within each scheme that have different Normal Retiring Ages. AVC funds can also be transferred separately.

You may be able to transfer out of the RMSPS whilst in RMPP Reckonable Service.

Provided that certain legal requirements are met, the amount of the transfer payment (other than in relation to AVC funds) will be calculated on the advice of the RMSPS/RMPP Actuary. You will normally receive a transfer value statement within 3 months of asking for one. This is known as your ‘Guaranteed Statement of Entitlement'. An estimate will be provided if the Statement cannot be provided within 3 months. You are not entitled to more than one Guaranteed Statement of Entitlement in any 12-month period.