Benefit illustration

[red666bear]

Where is this years? Only goes up to 31 March 2019 when it arrives. Come on service centre this shouldn’t take over 6 months to produce.

[Steve_claret]

Where is this years? Only goes up to 31 March 2019 when it arrives. Come on service centre this shouldn’t take over 6 months to produce.

This years financial year doesn't finish until 31 March 2020 so you have the latest figures. We always get the previous years illustration in Sept/Oct.

[RobertT]

Where is this years? Only goes up to 31 March 2019 when it arrives. Come on service centre this shouldn’t take over 6 months to produce.

It says in the Courier they'll be with us in 'early October', so it should be soon.

But we did used to get them earlier!

[antcpfc]

I am right in thinking that the lump sum is in addition to the total pension? For example mine says total lump sum is £33578 and total pension £11194. Talking in the canteen and a couple of posties say different.
To me it is basic stuff but just want to be sure.

[RobertT]

I am right in thinking that the lump sum is in addition to the total pension? For example mine says total lump sum is £33578 and total pension £11194. Talking in the canteen and a couple of posties say different.
To me it is basic stuff but just want to be sure.

Depends which section you're in!

If you're in B you get a lump sum as standard.
If you're in C you don't but you have the choice to give up some pension to get one.
Although the DBCBS is designed to provide a lump sum, which is likely to benefit section C members.

[antcpfc]

I am right in thinking that the lump sum is in addition to the total pension? For example mine says total lump sum is £33578 and total pension £11194. Talking in the canteen and a couple of posties say different.
To me it is basic stuff but just want to be sure.

Depends which section you're in!

If you're in B you get a lump sum as standard.
If you're in C you don't but you have the choice to give up some pension to get one.
Although the DBCBS is designed to provide a lump sum, which is likely to benefit section C members.

Thanks I am in sectionl A/B if that helps.

[Steve_claret]

I am right in thinking that the lump sum is in addition to the total pension? For example mine says total lump sum is £33578 and total pension £11194. Talking in the canteen and a couple of posties say different.
To me it is basic stuff but just want to be sure.

Depends which section you're in!

If you're in B you get a lump sum as standard.
If you're in C you don't but you have the choice to give up some pension to get one.
Although the DBCBS is designed to provide a lump sum, which is likely to benefit section C members.

Thanks I am in sectionl A/B if that helps.

Section A/B is the same as me so the lump sum will be included in your illustration. You will also have the option to increase your lump sum to 25% of your total pot and it is all tax free as well.

[RobertT]

But bear in mind the DBCBS will only provide a lump sum attached to your RMPP(1/4/2012 to 31/3/2018) benefits. So if the DBCBS is larger than 25% of those benefits, you will pay tax on anything over.

RM did ask government to link it to the RMSPS(up to 31/3/2012) benefits as well, but they said no!

In practice the longer the DBCBS is in operation for, the more likely you are to pay tax on some of your DBCBS pot.

[antcpfc]

I am right in thinking that the lump sum is in addition to the total pension? For example mine says total lump sum is £33578 and total pension £11194. Talking in the canteen and a couple of posties say different.
To me it is basic stuff but just want to be sure.

Depends which section you're in!

If you're in B you get a lump sum as standard.
If you're in C you don't but you have the choice to give up some pension to get one.
Although the DBCBS is designed to provide a lump sum, which is likely to benefit section C members.

Thanks I am in sectionl A/B if that helps.

Section A/B is the same as me so the lump sum will be included in your illustration. You will also have the option to increase your lump sum to 25% of your total pot and it is all tax free as well.

Thanks. How would I know what my total pension pot is? Sorry for the questions but I am completely ignorant when it comes to pensions.

[RobertT]

I am right in thinking that the lump sum is in addition to the total pension? For example mine says total lump sum is £33578 and total pension £11194. Talking in the canteen and a couple of posties say different.
To me it is basic stuff but just want to be sure.

Depends which section you're in!

If you're in B you get a lump sum as standard.
If you're in C you don't but you have the choice to give up some pension to get one.
Although the DBCBS is designed to provide a lump sum, which is likely to benefit section C members.

Thanks I am in sectionl A/B if that helps.

Section A/B is the same as me so the lump sum will be included in your illustration. You will also have the option to increase your lump sum to 25% of your total pot and it is all tax free as well.

Thanks. How would I know what my total pension pot is? Sorry for the questions but I am completely ignorant when it comes to pensions.

pension x 20 + standard lump sum(section A/B) + DBCBS + AVC's = total pot value.

More info is in your plan guide!

[antcpfc]

I am right in thinking that the lump sum is in addition to the total pension? For example mine says total lump sum is £33578 and total pension £11194. Talking in the canteen and a couple of posties say different.
To me it is basic stuff but just want to be sure.

Depends which section you're in!

If you're in B you get a lump sum as standard.
If you're in C you don't but you have the choice to give up some pension to get one.
Although the DBCBS is designed to provide a lump sum, which is likely to benefit section C members.

Thanks I am in sectionl A/B if that helps.

Section A/B is the same as me so the lump sum will be included in your illustration. You will also have the option to increase your lump sum to 25% of your total pot and it is all tax free as well.

Thanks. How would I know what my total pension pot is? Sorry for the questions but I am completely ignorant when it comes to pensions.

pension x 20 + standard lump sum(section A/B) + DBCBS + AVC's = total pot value.

More info is in your plan guide!

Thank you.

[Hawkey99]

Finally got my pension illustration today.

I have taken my NRA 60 pension and therefore only have one pension on my illustration.

Final salary pension at 31st March 2019 £0
CSDB Revalued Pension block £5000 (approx)

Is this the amount if I take this now or when Im 65.

Also If I do take this now do I lose 5% per year from this total.

Many thanks as always.

[Hawkey99]

Also the amount of cash balance fund cash sum, is that a total if taken now or what you would get if you take it when its due.

i.e. Will this figure be reduced ?

[renrag40]

The £5000 is what you have built up to the end of March 19, it is not a forecast. The cash balance fund can only be taken when you take your nra 60 or nra 65 benefits. It cannot be taken separately. Due to a recent ruling by the government the nra for the cash balance fund is 65 so if you took it early it would be reduced. The exact % I don’t know but would assume it would be the 5% per year as with your other nra 65 entitlements.
I interpret the workings out slight differently to RobertT in that the cash balance fund replaces part of your lump sum but does not increase the lump sum in any way. It has the effect of increasing your yearly pension in section B. The usually accept divider/multiplier for the pension pot is 20.
So for example, if your nra 65 pension is £3000 with a lump sum of £9000 retiring at nra. The total pension pot would be £69000 ((20 x 3000)+ 9000) of which you can take a maximum of 25% tax free which would be £17250 leaving £51750 pension pot to which is added the £5000 to give £56750.... this is then divided by 20 to give a yearly pension £2837.50.
The long and short of it being that the cash balance fund would give you an increase of £250 per year to £3250 if you didn’t take the maximum lump sum or mitigate the reduction in your yearly pension by £250 if you did take the maximum lump sum.
I would be interested to hear RobertT opinion on the above as this is just my ramblings on the subject and he has far more knowledge on the matter than me.

[RobertT]

Finally got my pension illustration today.

I have taken my NRA 60 pension and therefore only have one pension on my illustration.

Final salary pension at 31st March 2019 £0
CSDB Revalued Pension block £5000 (approx)

Is this the amount if I take this now or when Im 65.

Also If I do take this now do I lose 5% per year from this total.

Many thanks as always.

Also the amount of cash balance fund cash sum, is that a total if taken now or what you would get if you take it when its due.

i.e. Will this figure be reduced ?

When you took your NRA60, you took all of your final salary pension plus the first 2 years of the CSDB pension.

Therefore the CSDB figure is essentially your NRA65, which is pension you accrued from 1st April 2010 to 31st March 2018. It's just going up with inflation from that date onwards. If you take it before 65 it will be reduced by 5% per year.

The cash balance is to fund your lump sum when taking your NRA65 benefits, that too will be reduced if taken earlier. They have to be taken at the same time!