Choosing between RMDCP and the Cash Balance Scheme

If you’ve been a member of the RMDCP for five years – and have saved 4%, 5%, or 6% for the last four – you have a choice.

You can carry on saving into the RMDCP or you can start saving into the Cash Balance Scheme instead. The choice you make could have a big effect on how much money you have in your pension pot when you retire.

You get more from Royal Mail in the Cash Balance Scheme

In the Cash Balance Scheme, you save 6% of pensionable pay and Royal Mail add 13.6%.

In the RMDCP, if you save 6%, Royal Mail add 10%.

The Cash Balance Scheme is a Defined Benefit scheme. As long as you don’t take the money in your pot until you’re 65, it guarantees that you’ll get all the money that you and Royal Mail have paid into it – no matter what happens to investments. Every year, you might get a bonus added to your pot too, which you’d also be guaranteed to get.

Defined Contribution schemes, like the RMDCP, don’t give you these guarantees – the money you get depends on how your investments perform.

This video takes you through your choices – in about 3 minutes This letter helps you work out what’s best for you These booklets on the Royal Mail website tell you everything about the scheme To switch to the Cash Balance Scheme, fill in this form and send it to Royal Mail

Bees choose between two different hives

Visit the Royal Mail website. The booklets you can download there will tell you everything about the scheme.

When you're done with your visit to the website today, I'd love to ask you a few questions about your experience! Select me when you're finished if you'd like to participate.