Cash Balance Pension 2018-2022

[Duran]

Do any of you know when you can take this Pension ? Are there any penalties if you take at 60, with your NRA60 Pension.

Also is this purely a lump sum payment, or can you take as monthly pension ?

[RobertT]

The DBCBS is part of your RMPP(2012-2018) pension benefits, so is normally taken with your NRA65.

It's designed to be paid as a lump sum, but if you want to use it to fund extra pension instead, you would need to transfer it to another pension provider and then buy an annuity. Converting it into more RM pension is not possible.

[Duran]

The DBCBS is part of your RMPP(2012-2018) pension benefits, so is normally taken with your NRA65.

It's designed to be paid as a lump sum, but if you want to use it to fund extra pension instead, you would need to transfer it to another pension provider and then buy an annuity. Converting it into more RM pension is not possible.

RobertT Thankyou. So do you lose 25% of the cash balance lump sum if you take at 60 ?

[RobertT]

There was someone on here a while back you used to put all his figures up for everyone to see.

He took both his NRA60 and NRA65, and although his NRA65 was reduced for early payment, his DBCBS wasn't.

[SeanMc]

When you get your options for NRA65 there will be an option to take max tax free cash and reduced income using part of your Cash Balance Fund or max income using part of your Cash Balance Fund.As the Cash Balance Fund is part of your NRA 65 benefits if you take it before 65 the amount will be reduced.

[renrag40]

When you get your options for NRA65 there will be an option to take max tax free cash and reduced income using part of your Cash Balance Fund or max income using part of your Cash Balance Fund.As the Cash Balance Fund is part of your NRA 65 benefits if you take it before 65 the amount will be reduced.

The person who posted the whole of his step by step process to getting his pension was Stephen500. If memory serves, there was a reduction in the DBCBS if you took it before 65....... I believe it was 1.6% per year, so if you took it at 60 your cash balance would be reduced by 8%.

[freespeech]

When you get your options for NRA65 there will be an option to take max tax free cash and reduced income using part of your Cash Balance Fund or max income using part of your Cash Balance Fund.As the Cash Balance Fund is part of your NRA 65 benefits if you take it before 65 the amount will be reduced.

The person who posted the whole of his step by step process to getting his pension was Stephen500. If memory serves, there was a reduction in the DBCBS if you took it before 65....... I believe it was 1.6% per year, so if you took it at 60 your cash balance would be reduced by 8%.

My DBCBF amount will be well in excess of the tax free LS I will get with NRA65. Not ideal.

[tractorboy2]

If you don't take any of your NRA60 RMPP pension as a lump sum , you will be given an option to take some of the DBCBS as a lump sum instead.
At least I was.

[freespeech]

If you don't take any of your NRA60 RMPP pension as a lump sum , you will be given an option to take some of the DBCBS as a lump sum instead.
At least I was.

Thanks but that doesn’t help as I intend to take max LS with my NRA60 pension.

[Duran]

If you don't take any of your NRA60 RMPP pension as a lump sum , you will be given an option to take some of the DBCBS as a lump sum instead.
At least I was.

Things are getting clearer now. If you take max lump sum of NRA60 tax free, and you want to take Cash balance early. You will be taxed on it as you have already reached your tax free limit.

I hope this is explained when colleagues get their pension quotes. As it would make more sense to take lower lump sum of NRA60 and more annual pension. So that you could take Cash balance tax free with NRA 60.

It’s all about getting the most from your pension. Giving the taxman less.

I was quite happy with the Cash balance . For me it was returning over £6000 per annum.

This is the problem with having different trustees for different pensions. Gonna be a ball ache trying to work out best return when dealing with 4 pension pots.

[freespeech]

If you don't take any of your NRA60 RMPP pension as a lump sum , you will be given an option to take some of the DBCBS as a lump sum instead.
At least I was.

Things are getting clearer now. If you take max lump sum of NRA60 tax free, and you want to take Cash balance early. You will be taxed on it as you have already reached your tax free limit.

I hope this is explained when colleagues get their pension quotes. As it would make more sense to take lower lump sum of NRA60 and more annual pension. So that you could take Cash balance tax free with NRA 60.

It’s all about getting the most from your pension. Giving the taxman less.

I was quite happy with the Cash balance . For me it was returning over £6000 per annum.

This is the problem with having different trustees for different pensions. Gonna be a ball ache trying to work out best return when dealing with 4 pension pots.

Cash balance is NRA65 not 60.

[tractorboy2]

If you don't take any of your NRA60 RMPP pension as a lump sum , you will be given an option to take some of the DBCBS as a lump sum instead.
At least I was.

Things are getting clearer now. If you take max lump sum of NRA60 tax free, and you want to take Cash balance early. You will be taxed on it as you have already reached your tax free limit.

I hope this is explained when colleagues get their pension quotes. As it would make more sense to take lower lump sum of NRA60 and more annual pension. So that you could take Cash balance tax free with NRA 60.

It’s all about getting the most from your pension. Giving the taxman less.

I was quite happy with the Cash balance . For me it was returning over £6000 per annum.

This is the problem with having different trustees for different pensions. Gonna be a ball ache trying to work out best return when dealing with 4 pension pots.

No. If you take a lump sum with your NRA60 , then the only way to get your DBCBS early would be to take your NRA65 early too.

[RobertT]

When you get your options for NRA65 there will be an option to take max tax free cash and reduced income using part of your Cash Balance Fund or max income using part of your Cash Balance Fund.As the Cash Balance Fund is part of your NRA 65 benefits if you take it before 65 the amount will be reduced.

The person who posted the whole of his step by step process to getting his pension was Stephen500. If memory serves, there was a reduction in the DBCBS if you took it before 65....... I believe it was 1.6% per year, so if you took it at 60 your cash balance would be reduced by 8%.

My memory serves me differently!

[Hertsman001]

Hi I was 60 back in July Ive been with the company 14 years and in section C. IVE took my 60 age parts of my pension. I had the offer of taking a lump sum from my RMPP ( Royal Mail) plan only ( Please note NOT the Capita part ) either with a reduction of pension and lump sum . Or max pension with a slightly larger tax free lump sum from the cash balance scheme ,which is what I did. No lump sum is offered for the Capita part of the pension from the cash balance scheme , just the normal 25% max reduction in pension . I hope that makes sense!