What am I missing?

[freespeech]

As our NRA60 and 65 schemes have effectivey closed do they gain any additional value if you remain in work compared to leaving? I know you get the annual inflation increase but that applies regardless of employment as far as I know.

I appreciate the cash balance fund will still increase whilst employed and I know that can help to fund the LS for NRA65 but is that the only advantage to the older schemes?

If the CB fund is more than the LS available with NRA65 what does the additional amount fund?

[RobertT]

As our NRA60 and 65 schemes have effectivey closed do they gain any additional value if you remain in work compared to leaving? I know you get the annual inflation increase but that applies regardless of employment as far as I know.

The difference is the rate of inflation that's used for annual increases, particularly for section C members.
If you're an active C member RPI is used, but if you're deferred CPI is used.

RPI is usually higher.

Plus you have the benefit of paying into AVC's as an active member.

I appreciate the cash balance fund will still increase whilst employed and I know that can help to fund the LS for NRA65 but is that the only advantage to the older schemes?

The stated aim of the DBCBS when it was introduced was to fund the tax free cash, so less or no pension needs to be given up to get a lump sum.

It's OK as an interim scheme, but the longer it's in operation, the more tax we're likely to pay on it.
I think it's already lasted longer than originally expected!

If the CB fund is more than the LS available with NRA65 what does the additional amount fund?

Anything over the 25% tax free amount can be taken as a taxable lump sum, which I believe in the case of the DBCBS is as a UFPLS. Which means the first 25% of that excess amount is also tax free.