Retire at 55

[RobertT]

This is just a guess, Robert T, but here goes. I think that deficit's have to be addressed on a tri annual basis and I think the next one for RM is 2021.
Then I presume Rm have to come up with a recovery plan to get it back on track.
If they can get the CDC scheme in for 2021, then the deficit of the DBCBS (which I presume is not a deficit until a tri annual reveiew is held) may not be that great over "the" period of recovery, which I am guessing is 3 years till the next review?

I think you meant to post that on this thread ?

DB pension valuations need to be conducted at least every 3 years. This link gives you an idea of what the trustees have to consider to ensure a DB scheme is financially on track.
I assume the same applies to the DBCBS?

Just because there's a deficit, doesn't necessarily mean the scheme's in trouble, because there should be a plan in place based on expected returns over a fairly long period of time, not necessarily just 3 years.
Although a surplus is always preferable.

The DBCBS investments have probably suffered due to recent CV-19 market turmoil, just as everyone else's have, so the deficit probably isn't as bad as £177 million in reality.

The longer the DBCBS is an active scheme, the bigger the liabilities become. Once it closes, it should become easier to manage.

[freespeech]

This is just a guess, Robert T, but here goes. I think that deficit's have to be addressed on a tri annual basis and I think the next one for RM is 2021.
Then I presume Rm have to come up with a recovery plan to get it back on track.
If they can get the CDC scheme in for 2021, then the deficit of the DBCBS (which I presume is not a deficit until a tri annual reveiew is held) may not be that great over "the" period of recovery, which I am guessing is 3 years till the next review?

I think you meant to post that on this thread ?

DB pension valuations need to be conducted at least every 3 years. This link gives you an idea of what the trustees have to consider to ensure a DB scheme is financially on track.
I assume the same applies to the DBCBS?

Just because there's a deficit, doesn't necessarily mean the scheme's in trouble, because there should be a plan in place based on expected returns over a fairly long period of time, not necessarily just 3 years.
Although a surplus is always preferable.

The DBCBS investments have probably suffered due to recent CV-19 market turmoil, just as everyone else's have, so the deficit probably isn't as bad as £177 million in reality.

The longer the DBCBS is an active scheme, the bigger the liabilities become. Once it closes, it should become easier to manage.

Do you have a view as to whether an ongoing DBCBS scheme is more favourable than the one we are waiting for in terms of those that are likely to retire in the next 12 months or so (ie perhaps before the new scheme)?

[RobertT]

Do you have a view as to whether an ongoing DBCBS scheme is more favourable than the one we are waiting for in terms of those that are likely to retire in the next 12 months or so (ie perhaps before the new scheme)?

The longer the DBCBS is in operation, the more likely it'll add up to more than 25% of our RMPP(2012-2018) benefits and so the more likely we'll end up paying tax on it.

Equally being a member of the CDC scheme for a short time isn't going to provide much of a pension or lump sum(via the DBLSS). Although I believe there are plans, pending legislation, to be able to take a cash transfer to an individual DC arrangement, which might be a better option?

Ultimately it's going to come down to personal circumstances and choice.

[stephen500]

Do you have a view as to whether an ongoing DBCBS scheme is more favourable than the one we are waiting for in terms of those that are likely to retire in the next 12 months or so (ie perhaps before the new scheme)?

The longer the DBCBS is in operation, the more likely it'll add up to more than 25% of our RMPP(2012-2018) benefits and so the more likely we'll end up paying tax on it.

Equally being a member of the CDC scheme for a short time isn't going to provide much of a pension or lump sum(via the DBLSS). Although I believe there are plans, pending legislation, to be able to take a cash transfer to an individual DC arrangement, which might be a better option?

Ultimately it's going to come down to personal circumstances and choice.

I am confident I will end up over my 25% limit and I think I will pay around £1000 to £1200 tax and that is with 2 and three quarter years of dbcbs.(I am taking mine in Nov 2020) As Robert T said the longer it carries on, the more tax will have to be paid by people in the future.
Plus it is cash and when it is gone it is gone, whereas a pension keeps going.
It was fine for me in the short term and in answer to your question, I think in the short term is much better than going into a new scheme.