Question how to calculate life time allowance.

[stephen500]

Can some one give me the formula for calculating what percentage of a lifetime allowance a pension is. I am led to believe it is some thing like annual pension x 20 + lump sum (but do you use min or max lump sum) and do you use annual pension without reduction for taking max lump sum or the annual pension reduced by 15% for taking the max lump sum and how do you add DBCBS scheme to these calculations. All very confusing. If some body could just give me the formula I would be very gtateful. Once I have my life time allowance figure, if any one is good at maths, how do i find that figure as a percentage of my life time allowance. This is to help some one fill in their forms. I presume we have to do this for FS and Csdb and DBCBS

[RobertT]

Just use the method on page 12 of the plan guide!

Pension x 20 + lump sum + DBCBS + AVC's

But use full un-reduced amounts.

The Life Time Allowance is currently over £1 Million, so I'd be very surprised if any postie's pension provision, which must include any other pensions they may have, exceeds that figure.

[stephen500]

Just use the method on page 12 of the plan guide!

Pension x 20 + lump sum + DBCBS + AVC's

But use full un-reduced amounts.

The Life Time Allowance is currently over £1 Million, so I'd be very surprised if any postie's pension provision, which must include any other pensions they may have, exceeds that figure.

So use un reduced amount for yearly pension, but for the lump sum, do we use the min or max lump sum?
Thanks.

[Steve_claret]

You don't need to work it out as every pension quote you receive it will tell you what percentage that particular option is of your LTA. So if you go for the max lump sum this will be a lower percentage LTA than if you go for the standard lump sum. The highest LTA will be if you take no lump sum and convert it all to pension. Currently the LTA for most people is £1,073,100 so I don't think you will be worrying the taxman Stephen......or will you?

[RobertT]

Just use the method on page 12 of the plan guide!

Pension x 20 + lump sum + DBCBS + AVC's

But use full un-reduced amounts.

The Life Time Allowance is currently over £1 Million, so I'd be very surprised if any postie's pension provision, which must include any other pensions they may have, exceeds that figure.

So use un reduced amount for yearly pension, but for the lump sum, do we use the min or max lump sum?
Thanks.

Use the standard lump sum you get as a section B member, that's on your statement.