Common questions answered

When can I join the Plan? »
How much can I pay? »
Does my employer make any contributions? »
Can I top-up my pension by paying more? »
How will my contributions be invested? »
Can I transfer my pension benefits in from other pension schemes? »
When can I retire? »
What happens when I retire? »
What happens to my Member Account if I leave Royal Mail Group service and leave my Member Account invested? »
How do I transfer my benefits to another pension scheme? »
What happens if I die? »
How will I know how my Member Account is doing? »
How is the Plan set up? »

When can I join the Plan?

If you are a full-time or part-time permanent or fixed term (but not casual) employee under age 63, you will have joined the Plan as a "Waiting Period member" and have been automatically covered for life assurance benefit (at no cost to you) when you started working for Royal Mail Group or Post Office Limited. After a Waiting Period of 12 months’ continuous service with either Royal Mail Group or Post Office Limited, you will automatically be included in the Plan for pension benefits as well as life assurance benefit, as long as you are at least age 18 at that point. If you have not reached age 18 at the end of this Waiting Period you will join the Plan for pension and life assurance benefits when you reach 18.

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How much can I pay?

You decide how much you want to pay but you must pay at least 3% of your Pensionable Pay. If you want to pay more, you have the option to choose to contribute either 4% or 5% of your Pensionable Pay into the Plan and your employer will pay 6% or 7% respectively. See the question 'Can I top-up my pension by paying more? below, if you wish to pay more than 5%.

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Does my employer make any contributions?

Your employer makes a significant contribution into your Member Account. The following table shows the total contributions that will be invested in your Member Account.

Note: If you contribute 5% you will receive the highest level of contribution from your employer, namely 7%.

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Can I top-up my pension by paying in more?

Yes. Any contributions above 5% of your Pensionable Pay are referred to as voluntary contributions and you can start or change them at any time. As with your regular contributions, you will need to send a Choices Form to the Zurich Royal Mail Service Team or you can telephone them to make a change request.

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How will my contributions be invested?

Your contributions will be invested in the Investment Funds chosen by you and as described in the Investment Guide. If you do not make an investment decision, your Member Account will automatically be invested in the ‘Lifecycle option’.

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Can I transfer my pension benefits in from other pension schemes?

If you have pension benefits from previous pension arrangements such as a personal pension plan, or the scheme of a former employer, you may be able to transfer the value of these benefits into your Member Account, subject to the agreement of the Trustees. You should ensure this is an appropriate course of action before transferring. You will need to request a Transfer in Quotation Request Form from the Zurich Royal Mail Service Team.

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When can I retire?

The Plan’s normal retirement age is 65. However, you will be able to take benefits from the Plan from age 55, or you may retire earlier if you have to stop work through serious ill health and the early payment of your benefits is approved by the Trustees.

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What happens when I retire?

When you retire, the Trustees will use the money that has built up in your Member Account to provide your retirement benefits. You will be given full details of the options available to you when you want to take your benefits, or shortly before you reach your Selected Retirement Age (SRA). There is no guarantee as to the amount of benefits that will be provided.

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What happens to my Member Account if I leave Royal Mail Group or Post Office Limited service and leave my Member Account invested?

You will need to stop making regular contributions to your Member Account but you will still be able to choose how your Member Account is invested. The value of your Member Account can go down as well as up depending on the performance of the Investment Funds you have chosen to invest in.

The Trustees may transfer the value of your Member Account out of the Plan into a separate pension policy in your own name. If they do this they will write to you first to let you know their intentions and outline the process that will be followed.

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How do I transfer my benefits to another pension scheme?

If you want to transfer to another pension scheme you should ask the Zurich Royal Mail Service Team for a statement giving details on how to transfer. The transfer value will be the value of your Member Account at the time the transfer payment is made. You should speak to an Independent Financial Adviser to find out the risks and potential benefits of transferring.

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What happens if I die?

If you’re still paying into the Plan the benefit is:

• The value of your Member Account plus a lump sum of a multiple of your Pensionable Pay would be paid to your Beneficiaries.

If you’ve left employment with benefits in the Plan and have not retired the benefit is:

• A lump sum equal to the value of your Member Account paid to your Beneficiaries.

If you’ve taken your Plan benefits the benefit is:

• Dependant on the options you chose when you took your Plan benefits.

Further details are provided in the Plan Guide.

The Trustees decide who to pay benefits to on your death so that any lump sums can normally be paid free of Inheritance Tax. However, the Trustees will take your wishes into account. You can let them know who you would like benefits to be paid to by completing an Expression of Wish Form.

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How will I know how my Member Account is doing?

Zurich, on behalf of the Trustees, will send you an ‘Annual Benefit Statement’ every year giving you details of your Member Account, together with a summary of the Plan’s progress. The Trustees' Plan report and accounts will be available on request form the Zurich Royal Mail Service Team or from the Document Library. The annual report and accounts for the Plan year to 31 March are normally available from the October next following that 31 March. You can also request fund information sheets from the Zurich Royal Mail Service Team or print them off from the Document Library.

Members can also request online access to view their own Plan records and Member Account. Log in details are available on request by contacting the Zurich Royal Mail Service Team. The 'Getting online guide' found in the Document Library is there to help you access and view your Member Account.

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How is the Plan set up?

The Plan is an occupational pension scheme set up under trust. The Trustees are selected by Royal Mail Group and by the members. The Trustees monitor the investment options and fund performance and make sure that the Plan is properly administered. In order to provide the benefits set out in the Plan Guide, pension contributions from members and the employers are held separately from the assets of Royal Mail Group and Post Office Limited.

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