When are my deferred benefits payable?
Your benefits are in two parts: Age60 and Age65 benefits.
You usually take your Age60 benefits from age 60, and your Age65 benefits from age 65.
- Age60 benefits are those earned from service up to and including 31 March 2010.
- Age65 benefits are those earned from service on and after 1 April 2010.
We’ll write to you at least four months before you reach your 60th birthday, with details of the benefits payable in full at your 60th birthday. You can think about taking your Age65 benefits too, but they’ll be reduced because they will be paid for longer.
If you decide to keep your Age65 benefits with us until age 65, we’ll write to you again, at least four months before you reach your 65th birthday with details of these benefits.
Can I take my deferred benefits early?
Once you reach age 55, you can choose to take your benefits early, but they will be reduced because they are likely to be paid for longer. You can apply for early payment of your Age60 benefits, Age65 benefits, or both.
You may also be able to take your benefits early, at any time, due to ill health. In that case, there is no reduction for early payment.
Taking your benefits early due to ill health
If, after leaving the RMPP, you later find yourself too ill to work, you might be able to take your pension and lump sum early on the grounds of ill health. You wouldn’t have to wait until you’re age 55, provided we approve your application after considering the medical evidence. In these circumstances, we’d start to pay you your Age60 and Age65 pensions at the same time, without any reduction, along with your lump sums.
Taking your benefits early on compassionate grounds
If you’re aged 55 or over, and are no longer working for your employer, you may be able to take your pension and lump sum early on compassionate grounds. For example, because you have to give up work to be a full-time carer for your spouse, civil partner, or another close relative or partner. If we agree that you can take your benefits on compassionate grounds, some or all of your benefits will be reduced. Please contact the Pensions Service Centre for further details.
Applying for early retirement
To apply for early retirement, ill-health retirement or early retirement on compassionate grounds, please contact the Pensions Service Centre.
Leaving your benefits in the Plan to grow
These are sometimes called ‘preserved benefits’. You can leave your deferred pension and lump sum in the RMPP until you retire or decide to transfer some or all of them elsewhere.
While your benefits earned before 1 April 2018 remain in the RMPP, we’ll increase them each year if there is inflation. The measure of inflation your benefits are linked to is called the Consumer Prices Index (CPI).
While your benefits earned from 1 April 2018 remain in the RMPP, they may be subject to discretionary increases. The policy for discretionary increases is set by Royal Mail (not the Trustee) and is currently to target discretionary increases in excess of inflation as measured by the CPI with such increases capped at a rate of 4% above CPI for each year.
Every year we will send you a ‘current value’ statement, showing you how much your deferred benefits are worth (including any increases we’ve added).