Accessing Cash Balance Fund

[NewPostieUK]

I walked away at 60, but I'm not claiming any Royal Mail pension yet.
After 17 years I have a NRA60 pension of around £2 a YEAR, and a Cash Balance Fund of 25k.
I have no idea what this means (but I'm aware I'm in section C and also have a NRA65).
Can I have this Cash Balance 25k as a lump sum?
Can I have all (3?) pensions just as a one off lump sum?
I just want everything I can have now, and sever all ties with Royal Mail.

I have a form offering two options.
£2.10 a year
or £1.63 a year with a tax free lump of £10.93

I just want the lot now and don't care about paying tax.
Could I transfer the lot into Pension Bee (for example) and then just take the lot as a lump?)

[RobertT]

If you're in section C you'll have joined RM and the pension, sometime before 31st March 2008.

It sounds like the figures you quote are only from the RMPP, but you should have at least 2 years worth of Age60 and 2 years worth of Age65 via the RMSPS aswell, as they're responsible for benefits accrued before April 2012.
Have you been in touch with them?

It's not possible to transfer your RMSPS benefits to anything other than another defined benefit pension scheme.

But you can theoretically transfer your RMPP benefits to a personal pension and access the cash from there.
If they're worth more than £30k you'll need the approval of an IFA, which is difficult to get and very expensive. Realistically, it's a non starter!

I doubt if your RMPP Age65 pension has a Cash Equivalent Transfer Value of less than £30k, so you'll probably struggle to transfer that. But you should be able to transfer just the Cash Balance.

For more info, see both the RMSPS and RMPP websites.
v

[NewPostieUK]

Thanks for that. Yes I started in November 2007.
I have the other pensions, it's just this one is a ridiculous £2 a year and I'd rather just have a lump sum and pay tax on it.
It says 'Cash Balance Fund' is £25k. You'd think I'd be able to have that in 'Cash'.

[RobertT]

The two Age60 pensions(from RMPP & RMSPS) have to be taken together and the two Age65 pensions have to be taken together.

Although it's possible to transfer your RMPP pension benefits, pending the £30k advice rule, as far as I'm aware it's not possible to transfer the Age60 element and not Age65, or vice versa.

With a yearly pension of £2, I would guess your RMPP Age60 CETV is probably only about £40 anyway.

The Cash Balance is a pension so pension rules apply to it.
It's designed to fund a lump sum with Age65 benefits, but can be transferred out to a personal pension beforehand instead. When you then access it, 25% would be tax free and the remainder classed as income and taxed accordingly.

There is no option for section A, B or C members to access the Cash Balance on it's own directly from the RMPP. It has to be taken at the same time as Age65 benefits or else transferred out beforehand.

[NewPostieUK]

The two Age60 pensions(from RMPP & RMSPS) have to be taken together

Thank you for clearing that up, much appreciated.