What contributions are made to the Cash Balance Scheme
The Company contributes 15.6% of DBCBS pensionable pay to the scheme. Of this, 13.6% goes towards the member's guaranteed lump sum. The remaining 2% of the Company's contributions will go to other member benefits including death in service and ill-health benefits. The member's contributions of 6% of DBCBS pensionable pay will also go towards the lump sum.
Can I make Additional Voluntary Contributions (AVCs)?
You can make Additional Voluntary Contributions (AVCs). these will be invested into a separate AVC account for you. You'll need to keep the account invested until you take your main benefits. You'll also need to make decisions about where to invest your AVC fund.
What benefits will I receive?
At 65, normal retirement age, members will receive a lump sum of at least the 19.6% of DBCBS pensionable pay that has been paid on their behalf each year.
The DBCBS will also target to provide increases to the lump sum up to or above inflation. This is dependent upon the scheme's investment performance each year.
When can I take my benefits?
After you have reached age 55, your employer may allow you to choose early retirement. If you do retire early, the Cash Balance benefit will be reduced to reflect its early payment on terms set by Royal Mail.
For payment unreduced, benefits have to be taken at age 65.
Could some people be in a different Pension Plan?
Yes. Our original Plan closed to new members on 31 March 2008. So, if you started paying into a pension after this point, you will have joined the Royal Mail Defined Contribution Plan (RMDCP) instead. On 1 April 2018 the RMPP reopened. It is only open to members of the RMDCP who have more than four years of pensionable service at the standard rate.