NRA65 and Cash Balance Fund

[freespeech]

With no imminent date for the new pension it does seem likely that the cash balance fund for most people will be higher than the max lump sum for NRA65. What options are there to use the excess for other things? Can you use any of the CB money to fund the NRA60 lump sum?

[Hertsman001]

Hi I took early retirement from Royal Mail July last year . I only took the NRA 60 and left the rest ie NRA65. As part of your options you can take the lump sum from the cash balance , I dont have it to hand right this minute but it only applied to the smaller pension of the 2 you will get aged 60 . Must admit it was something I wasnt expecting .

[tractorboy2]

Hi I took early retirement from Royal Mail July last year . I only took the NRA 60 and left the rest ie NRA65. As part of your options you can take the lump sum from the cash balance , I dont have it to hand right this minute but it only applied to the smaller pension of the 2 you will get aged 60 . Must admit it was something I wasnt expecting .

This is correct , you get offered an amount , so as not to reduce the RMPP Age 60 benefits.
Off the top of my head , I would have got a lump sum of around £1600 , I was offered an opportunity to take some of the cash balance fund instead and
this was around £2100.

[RobertT]

The RMPP are responsible for paying not only your 2012-2018 pension + the DBCBS, but the benefits that continued to build up from 2012 onwards aswell. In other words some inflationary increases associated with pre 2012 pensions.

Therefore when you take your NRA60 pension you get payments from both the RMSPS and the RMPP, and the DBCBS can be 'offset' against those RMPP NRA60 benefits to provide some tax free cash.

I assume, as time goes by and the value of those RMPP NRA60 benefits increase, the amount of DBCBS that can be taken with those benefits, will also increase.