Sec A/B member with deferred pension

Andy434 · Post by **Andy434** » 08 Jan 2020, 13:20

Hi I have a sec a/b deferred final salary pension which provides a lump sum and yearly pension when I reach 60. I do not have any other royal mail pensions. My question is do I have the option of converting some of the yearly pension to boost the existing lump sum and if so to calculate the value of the pension pot do I just times the yearly pension by a theoretical commutation rate ( 20 appears to be reasonable) and add the lump sum to the total. I assume that if I then divide the total figure by 4 this would give me the total lump sum available to me. Sorry if this does not make sense or if I am talking rubbish please say so.

Post by **RobertT** » 08 Jan 2020, 16:33

You've described the process pretty well!

The maths is:

Yearly pension x 20 + standard lump sum(sections A&B) + AVC's(if applicable) = total pot value

Maximum lump sum = 25% of total pot value.

Take a look at page 12 of the latest version of the plan guide, available to view here: https://www.royalmailpensionplan.co.uk/ ... ts/library" onclick="window.open(this.href);return false;

Andy434 · Post by **Andy434** » 08 Jan 2020, 17:41

Thank you for your reply