Leaving rm

[Sputters]

I have just left rm after 34 years .
What are my options for my avc and nra 65 pension I am taking my nra60 . also what happens to the new pension I have been paying into . Thanks in advance .

[RobertT]

It sounds like you're in section C?
If so, AVC's are usually best used to fund the tax free lump sum with NRA60, due to their being no standard lump sum.

By 'new pension' I assume you mean the DBCBS?
If so, that is usually used to fund the tax free cash with NRA65.

AVC's could be left to be taken with NRA65, but with the DBCBS aswell, you'll probably lose a fair bit to the taxman.

Otherwise, transferring the AVC's and/or the DBCBS to a personal pension is an option. You may be able to drawdown over a period of time and reduce or avoid paying tax altogether, depending on your other income.

[Sputters]

Thanks Robert.
Forgive me but is the DBCBS the new pension that hasn't started yet . and yes I'm in section c . I took my avc when i was 60 i am now 63 and still paying into them until last week .Thanks again .

[RobertT]

You can't pay into a pension that hasn't started yet!

The DBCBS is what you've presumably been paying into since 2018. It's part of the RMPP and is used to fund the tax free cash with NRA65 benefits.

Your payslips will confirm which pension you've been paying into.

The new CDC pension or the Royal Mail Collective Pension Plan as it'll be known, is finally due to start sometime in 2024, unless there's any more delays.