Second bite payments

You have received this letter because we have identified that an error was made in relation to the ‘second bite’ lump sum payment paid to you in April 2024.

Every April, pensioner members receive an annual increase to their pension benefits. For some eligible members, as well as an increase to their regular benefit payments, they also receive a one-off lump sum payment known as a second bite. The second bite is a ‘top up’ of the benefits that have been received in the first year of payment and covers the date from the last pension increase in April 2023 to the date of your retirement.

On reviewing a number of our processes, we identified an error when calculating the second bite. This error affects a small number of member benefits paid during the April 2024 Pension Increase exercise.

In some cases, members have received less than they should have. Others have been overpaid or paid without being eligible for this benefit.

Following identification of this issue, we have investigated our processes and taken corrective action.

The letter you received sets out the value overpaid and the payment options available to you.

• You may choose to make a one-off payment to us if you are able. You will need to make this payment before the date shown in your letter or an automatic deduction from your benefits will be set up instead.
• If you are unable to make a one-off payment by the deadline shown in your letter, an automatic deduction will be set up from your benefits. These deductions will be taken in instalments over a number of months, as advised in your letter. If you agree with the repayment schedule in your letter, there is nothing else you need to do. Your benefit levels will return to normal once the overpayment has been recovered.
• If you want to make alternative arrangements with us to return the overpayment, please contact us using the contact details in the letter or on this page under the section ‘How do I contact you about this?’

If you are unsure about how to make the repayment, please contact us as soon as possible for support.

Please contact us as soon as possible using the contact details in the letter or on this page under the section ‘How do I contact you about this?’

We will work with you to try and find an arrangement that supports you.

We apologise for this error and understand it will financially inconvenience some members. We are required by the Scheme rules, and under law, to ensure that the correct benefits are paid to members. This means any overpayment has to be recovered and any underpayment has to be corrected and paid.

If you are unhappy about this situation and may want to make a complaint, please call us on:

Telephone: 0333 222 0078
Overseas: +441325 271 861

The team are available from 8.30am (GMT) until 5.30pm (GMT) Monday to Friday, excluding bank holidays.

Or you can email us, and we will refer your complaint to our Customer Relations Team who will carry out an independent investigation. To ensure that your email reaches the right team quickly we have set up a dedicated email address: paymentcorrections@rmsps.co.uk

When contacting us please quote your National Insurance number or Pension Reference number.

More information about how to make a complaint please go to our Complaints page at www.royalmailsps.co.uk/contact-us/i-want-to-make-a-complaint

If you are concerned about your financial situation and the cost of living, there are a number of organisations you can contact for support or assistance.

• National Federation of Occupational Pensioners - www.nfop.org.uk
• Citizens Advice - www.citizensadvice.org.uk
• MoneyHelper - www.moneyhelper.org.uk
• The Government’s Help for Households - helpforhouseholds.campaign.gov.uk
• Pension Tracing Service - www.gov.uk/find-pension-contact-details
• Unions - you may be able to access advice from any unions that you are (or were) a member of

You can request information about your revised Lifetime Allowance (LTA) or tax-free cash position by contacting us on any of the details shown in our ‘How do I contact you about this?’ section.

For most members, the second bite payment is paid as part of the 25% tax-free cash lump sum. In these circumstances, there would be no tax implications relating to this payment.

If you have incurred a tax charge for going over your Lifetime Allowance, you should contact His Majesty’s Revenue and Customs (HMRC) to arrange for a review of your tax payments. You may need to provide evidence to support this request such as copies of your payslips, benefit award papers and your second bite overpayment letter.

Yes, some members may see a further change to their benefits following the outcome of the GMPe exercise. Members contacted about the second bite payment who also have a GMP element to their pension will receive their GMPe ‘impact letter’ in January 2025.

Members receiving benefits that are more than they would have been paid as member of the opposite gender will see a decrease in the GMP element of their pension going forward. The Scheme will NOT be looking to recover any overpayments related to GMPe.

We recommend reviewing our FAQs and further information in relation to GMP at www.royalmailsps.co.uk/guaranteed-minimum-pension-gmp

Most people receive their State Pension when they reach State Pension Age. The amount you get depends on your National Insurance record and increases each year. This amount will not be affected by the second bite issue. You can find out how much State Pension you’re likely to get and when by visiting: www.gov.uk/check-state-pension

Your household income (including any public and private pensions) is used to calculate your eligibility for Pension Credit and the winter fuel payment. This means any change to your pension benefits, including reduced benefits related to the second bite overpayment, could affect your eligibility. To check if you’re eligible visit: www.gov.uk/winter-fuel-payment/eligibility

You can contact us using the details below:

We have set up a dedicated email address specifically for questions and queries relating to second bite payments: paymentcorrections@rmsps.co.uk

For all other queries relating to your benefits, you can contact us via enquiries@rmsps.co.uk

Telephone: 0333 222 0078
Overseas: +441325 271 861

The team are available from 8.30am (GMT) until 5.30pm (GMT) Monday to Friday, excluding bank holidays.

If you would prefer, you can write to us. Our address is:
Royal Mail Statutory Pension Scheme
Second bite payments
PO Box 551
Darlington
DL1 9TX
United Kingdom

When contacting us please quote your National Insurance number or Pension Reference number.