Pension supplements - Section C - and lump sum calculations - A question

[stephen500]

Robert T.
Could I ask a follow up question about the supplements for section C members.
I know you have told me that the supplements are paid if the member leaves the business.
I have a question regarding available lump sums for section C members.
1) Does the member include supplements in totalling up his/her pension pot.
2) Can the member take 25% of that pot, that INCLUDES the supplement as a tax free amount (up to 25%)
In otherwords does the member use the SUPPLEMENT, pension and pension increases x 20 to find his/her pot and up to his/her max 25% lump sum.
I have been led to believe on another thread, that the supplement does not decrease, if the member takes the max lump sum.
But does that mean that the supplement cannot be used for lump sum purposes?
Ie for lump sum purposes is only the pension and pension increases (not the supplement) x 20 used to total up the pension pot to find the available 25% tax free amount.
I hope this question is clear!
Thanks.

[RobertT]

It's a case of conflicting information!

The plan guide says the supplement is included when working out the max tax free lump sum.
At least 1 member of this forum has been told that if you're not leaving RM, then the supplement isn't included in the calculation.
Plus some people seem to have been told the supplement doesn't decrease, while others have taken their pension and have had a reduced supplement.

I have no personal experience of taking any of my RM pension as I'm not old enough yet and don't plan to for about another 7.5 years. So to be honest, I don't have a definitive answer for you.
Perhaps others can share their experiences?

[stephen500]

It's a case of conflicting information!

The plan guide says the supplement is included when working out the max tax free lump sum.
At least 1 member of this forum has been told that if you're not leaving RM, then the supplement isn't included in the calculation.
Plus some people seem to have been told the supplement doesn't decrease, while others have taken their pension and have had a reduced supplement.

I have no personal experience of taking any of my RM pension as I'm not old enough yet and don't plan to for about another 7.5 years. So to be honest, I don't have a definitive answer for you.
Perhaps others can share their experiences?

So from what you say, (or as you say the "plan guide" says) members can include their supplement in totalling up their pot and so use for calculating their lump sum up to a max of 25%.
The only question is whether the supplement part of the annual pension is reduced when allowing for taking it.
Of course the member, it appears, must leave the business to make use of the supplement.
Thanks.
If any one else who has taken the 25% lump sum, knows what happened to their annual pension supplement (whether it decreased as a trade off), if they took a lump sum, please let us know.