Just received my illustration and am still none the wiser. Can anybody explain, in simple terms, if there is any benefit in remaining in Section A or whether it would be better to transfer to B. ?
Many thanks
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Section A/B
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k979aaa
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Re: Section A/B
Dont think you can but the early ones are better than section C which is C for CR@P!.ronnie6 wrote:Just received my illustration and am still none the wiser. Can anybody explain, in simple terms, if there is any benefit in remaining in Section A or whether it would be better to transfer to B. ?
Many thanks
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seaniesson
- Posts: 8
- Joined: 02 May 2008, 13:20
Re: Section A/B
Hi,ronnie6 wrote:Just received my illustration and am still none the wiser. Can anybody explain, in simple terms, if there is any benefit in remaining in Section A or whether it would be better to transfer to B. ?
Many thanks
Section A was the non-contributory part of POSSS (if you joined the scheme before 1/12/71)
Under section A you made no contributions from your pay to the POSS scheme (much like a Civil Service Pension Scheme)
Section B was the contributory part of POSSS (if you joined the scheme after 1/12/71)
Under section B you made contributions of 6% of contributory pay to the POSS scheme.
You would probably be best finding out the benefits of each section from Pensions for each situation, ie on normal age retirement, ill health retirement, early voluntary redundancy etc etc (but ensuring you word it so that you are not asking their advice about which Section to be in) and then speak to an independent financial advisor. I think that RM Pensions staff are not allowed to give you advice as to which section to be in as they are not regulated by the Financial Services Authority and the giving of advice would therefore be illegal. However I think that they may be able to tell you the benefits of each section in each of the above situations so that you can make this decision yourself.
There were certain situations when Section A was more beneficial than Section B but in other situations Section B was more beneficial than Section A. Once you know the benefits of each section for each situation then you should be able to make a decision based on your personal circumstances.
I hope I havent waffled on too much and this helps in some way......