Pension Mess

[freespeech]

To give some more detail of why I can't reconcile things......I have had my pension estimates (aged 55) from both RMSPS and RMPP but only my annual statement from RMSPS. If I look at my NRA60 on the annual statement I get a figure (inc supplement) of £17437. If I reduce this by 25% for taking it five years early that reduces to £13077. However, my early pension estimate gives £14,459. The figures look too good to be true......

Don't forget that some of your pension is moved from RMPP to RMSPS.
That's why my RMSPS pension quote was far better than the orignal old style illustration and my NRA 65 RMPP much less.

I get that......but I am comparing this years RMSPS statement with ONLY THE RMSPS part of my pension estimate (which has been reduced due to taking it at 55). They should be like for like (after the 25% reduction in the statement) except the estimate is for the additional time since April 1st (date of the statement). They are nearly £1500 per year different.

My RMSPS statement is nearly pound for pound as per the pension quote I have had and am due to take in November.

Neither of which will include any AVC's and the impact these have (ie how much they contribute to the LS, the revised pension or any taxable element.

[tractorboy2]

I would love to see an option form for Section C.

[stephen500]

I would love to see an option form for Section C.

From memory the options range from
NRA 60
Take all pension and no lump sum
Lose up to 25% of your pension and get up to 25% of your tax free allowance free of tax
NRA 65
Take standard pension
Reduce pension by up to 25% and take up to 25% of your pot tax free.
Take DBCBS (25% is tax free and 75% taxed at your tax rate)
Transfer your DBCBS to another provider
Use your DBCBS to buy an annunity

[mr hil.]

I would love to see an option form for Section C.

From memory the options range from
NRA 60
Take all pension and no lump sum
Lose up to 25% of your pension and get up to 25% of your tax free allowance free of tax
NRA 65
Take standard pension
Reduce pension by up to 25% and take up to 25% of your pot tax free.
Take DBCBS (25% is tax free and 75% taxed at your tax rate)
Transfer your DBCBS to another provider
Use your DBCBS to buy an annunity

I thought RM have been selling the DBCBS as an alternative way to fund your NRA65 lump sum and leave more of your pension. Also they have said that some of the DBCBS could be used to fund your NRA60 lump sum too but they have been very vague as to how much. I thought the government/tax man refused to all the DBCBS tp attached to the original final salary pension though. As has been said I would love to see the actual options from a current section c too

[RobertT]

I would love to see an option form for Section C.

From memory the options range from
NRA 60
Take all pension and no lump sum
Lose up to 25% of your pension and get up to 25% of your tax free allowance free of tax
NRA 65
Take standard pension
Reduce pension by up to 25% and take up to 25% of your pot tax free.
Take DBCBS (25% is tax free and 75% taxed at your tax rate)
Transfer your DBCBS to another provider
Use your DBCBS to buy an annunity

I thought RM have been selling the DBCBS as an alternative way to fund your NRA65 lump sum and leave more of your pension. Also they have said that some of the DBCBS could be used to fund your NRA60 lump sum too but they have been very vague as to how much. I thought the government/tax man refused to all the DBCBS tp attached to the original final salary pension though. As has been said I would love to see the actual options from a current section c too

You are correct, the DBCBS is really there to fund the lump sum so you don't have to give up as much pension to get one – particularly useful for section C members.

But based on posts on this forum, it seems it's also possible to take the DBCBS as a lump sum aswell as the full 25% lump sum from the main scheme/s. But with at least some of the DBCBS being taxed.

The Government did refuse to allow the DBCBS to be attached to benefits accrued before 31st March 2012. Therefore it can only be used with benefits accrued afterwards, which includes some inflationary increases on pre 2012 benefits.

It is a very vague area and I haven't got my head round exactly how they work it out.

[david3595]

Received RMPP statement today, all seems correct compared to Pension Quotes I received a year ago when I decided take my NRA60 @55 ( allowing for RPI pension increase since then )

Although I received a lump sum from my DBCBS with my NRA60 most of the cash pot seems to have been carried forward to NRA65 which I’m still contributing too