Cash Balance leftover

[stevie.k]

I'll be 65 in February 2026 and have just received my NRA65 paperwork (I'm a section B member and already in receipt of my NRA60 benefits) I'm thinking of taking the full pension in the RMSPS and the RMPP and using the Cash Balance for the tax free lump sum.My question is as the leftover cash balance of 22k becomes a UFPLS and not paid out until 4 months later will it still get the inflation rise in April ? which I think will be 3.8%

[SeanMc]

I'm 65 in January and section B. I have filled in and returned all my paperwork which has been cleared and received an acknowledgement letter which states the cash balance as a UFPLS will be paid with my first monthly pension payment. So no 4 month wait!

[RobertT]

Maybe if you're taking the whole DBCBS as a UFPLS, it's paid in full at the time. But if you're using it to fund the tax free lump sum, you have to wait for the UFPLS payment?

RM set the amount the DBCBS increases by each year and their target is in excess of CPI.
So far there's been one year that it's been equal to CPI and all the rest have been above.
They usually announce the figure around April/May.

To be honest, I don't know if you'll get a rise if you're going through the process of taking your benefits at the time of the annual increase. But if your money is still in the pot, then logically you should.

[stevie.k]

Thanks for your thoughts chaps,I'm going to get the paperwork off and will wait and see if the leftover cash balance attracts the yearly increase assuming it gets paid out 16 weeks later according to my paperwork.

[SeanMc]

Does your paper work say it will be paid 16 weeks later? Mine didn't it clearly states it will be paid with the first pension payment and the only difference between us is I'm getting mine a month earlier.

[stevie.k]

According to the letter because I'm taking the tax free element of the cash balance which will be paid on my 65th birthday the remainder of the taxable cash balance will be paid around 16 weeks after and they will write to me again.

[SeanMc]

My letter says "you will pay tax on 75% of your UFPLS.The amount after tax will be paid to your account with your first pension payment".
So it must be,as Robert suggested ,because you are using the tax free element to fund your lump sum.
Thanks for the reply.