Pension Choice Questions Help

[freespeech]

I'm just completing the paperwork to take my NRA60 pension and am stuck on one of the questions in the RMSPS submission. It asks what "type" of lump sum I am getting from RMPP. I've chosen Option 1A (from RMPP) which gives me a full pension but no tax free cash (from NRA60) but gives me a tax free element of the cash balance (doesn't include any taxable money). As I understand it "uncrystalised" lump sums are 25% tax free then the rest taxed so it isn't that. It doesnt relate to ill-health so that is out too. I Googled stand alone lump sum and that relates to an old pre 2006 pension so it isn't that. The only thing left is PCLS but I can't see that is correct either if it comes from the cash balance scheme.

Did anyone else opt for NRA60 only and chose 1A? How did you complete it if the NRA60 element didn't include a "normal" tax free element?

[roadrunner bill]

I chose option 2 for my 65 benefits.. not option 1a..

I was told dong so gets.me 2 lump sums a bigish lump sum and a smaller lump sum... but I get a reduced annual amount yearly.

But I also get my full cash balance too..

Where if you chose option 1a... your lump sum comes out of your cash balance... I believe....

[RobertT]

I'm just completing the paperwork to take my NRA60 pension and am stuck on one of the questions in the RMSPS submission. It asks what "type" of lump sum I am getting from RMPP. I've chosen Option 1A (from RMPP) which gives me a full pension but no tax free cash (from NRA60) but gives me a tax free element of the cash balance (doesn't include any taxable money). As I understand it "uncrystalised" lump sums are 25% tax free then the rest taxed so it isn't that. It doesnt relate to ill-health so that is out too. I Googled stand alone lump sum and that relates to an old pre 2006 pension so it isn't that. The only thing left is PCLS but I can't see that is correct either if it comes from the cash balance scheme.

Did anyone else opt for NRA60 only and chose 1A? How did you complete it if the NRA60 element didn't include a "normal" tax free element?

As the aim of the DBCBS is to fund the tax free lump sum(without having to give up any RMPP pension), I would say a Pension Commencement Lump Sum(PCLS) is all it can be.

[freespeech]

I chose option 2 for my 65 benefits.. not option 1a..

I was told dong so gets.me 2 lump sums a bigish lump sum and a smaller lump sum... but I get a reduced annual amount yearly.

But I also get my full cash balance too..

Where if you chose option 1a... your lump sum comes out of your cash balance... I believe....

This is an NRA60 option not 65. :)

[freespeech]

I'm just completing the paperwork to take my NRA60 pension and am stuck on one of the questions in the RMSPS submission. It asks what "type" of lump sum I am getting from RMPP. I've chosen Option 1A (from RMPP) which gives me a full pension but no tax free cash (from NRA60) but gives me a tax free element of the cash balance (doesn't include any taxable money). As I understand it "uncrystalised" lump sums are 25% tax free then the rest taxed so it isn't that. It doesnt relate to ill-health so that is out too. I Googled stand alone lump sum and that relates to an old pre 2006 pension so it isn't that. The only thing left is PCLS but I can't see that is correct either if it comes from the cash balance scheme.

Did anyone else opt for NRA60 only and chose 1A? How did you complete it if the NRA60 element didn't include a "normal" tax free element?

As the aim of the DBCBS is to fund the tax free lump sum(without having to give up any RMPP pension), I would say a Pension Commencement Lump Sum(PCLS) is all it can be.

Thanks Robert.......I agree and will ring the helpline today before I email my options back.

[freespeech]

I'm just completing the paperwork to take my NRA60 pension and am stuck on one of the questions in the RMSPS submission. It asks what "type" of lump sum I am getting from RMPP. I've chosen Option 1A (from RMPP) which gives me a full pension but no tax free cash (from NRA60) but gives me a tax free element of the cash balance (doesn't include any taxable money). As I understand it "uncrystalised" lump sums are 25% tax free then the rest taxed so it isn't that. It doesnt relate to ill-health so that is out too. I Googled stand alone lump sum and that relates to an old pre 2006 pension so it isn't that. The only thing left is PCLS but I can't see that is correct either if it comes from the cash balance scheme.

Did anyone else opt for NRA60 only and chose 1A? How did you complete it if the NRA60 element didn't include a "normal" tax free element?

As the aim of the DBCBS is to fund the tax free lump sum(without having to give up any RMPP pension), I would say a Pension Commencement Lump Sum(PCLS) is all it can be.

Thanks Robert.......I agree and will ring the helpline today before I email my options back.

Yes, helpline confirmed the Cash Balance sum associated with NRA60 is a PCLS.

[RobertT]