Section B conversion rates

[Corey]

Hello , could anybody tell me what the RM conversion rates are for section B members , pension to lump sum and vice versa , I have looked but can’t find the info anywhere.

[RobertT]

I seem to remember someone posting about this on here a while back, but I can't find it!

If I remember correctly, the rate for giving up pension for lump sum is 1:20, but vice versa it's 22:1.

[Corey]

Thanks Robert , for something that could be quite important, it’s really hard to find any information on .

[RobertT]

I don't think there is any official information on it, or if there is I don't know where.

It's more a case of someone getting their figures and working it out for themselves.

[renrag40]

I seem to remember someone posting about this on here a while back, but I can't find it!

If I remember correctly, the rate for giving up pension for lump sum is 1:20, but vice versa it's 22:1.

That was probably me.
My nra60 figures were as follows
Yearly pension £10,884. Standard lump sum £32,654
Yearly pension £9,423. Maximum lump sum £62,824.
So for an extra £30,170 lump sum results in a reduction of £1,461 reduction in the yearly pension.
The conversion rate is 30,170 ÷ 1,461= 20.65:1
Converting the standard lump sum in yearly pension would result in an increase of £1,454 to £12,338.
The conversion rate is 32,654 ÷ 1,454 = 22.46:1.
Hope this of some help.

[Corey]

Thank you both , that’s really helpful from both of you .My estimated section B seems to be coming out similar to yours Renrag , although I have about 14 months to NRA 60 , but it does give me an idea of conversion rates

[short bloke]

I seem to remember someone posting about this on here a while back, but I can't find it!

If I remember correctly, the rate for giving up pension for lump sum is 1:20, but vice versa it's 22:1.

That was probably me.
My nra60 figures were as follows
Yearly pension £10,884. Standard lump sum £32,654
Yearly pension £9,423. Maximum lump sum £62,824.
So for an extra £30,170 lump sum results in a reduction of £1,461 reduction in the yearly pension.
The conversion rate is 30,170 ÷ 1,461= 20.65:1
Converting the standard lump sum in yearly pension would result in an increase of £1,454 to £12,338.
The conversion rate is 32,654 ÷ 1,454 = 22.46:1.
Hope this of some help.

Afternoon rerag40,

I hope you don't mind me being nosey about your figures, but how many years was that in the final salary? And was it close to your yearly statement?
The reason I ask is I'm only a year or two away from getting my 60 pension and trying to start to plan for then.
Thanks

[renrag40]

Hi Short Bloke.
I started in June 85....... just under 23 years in the final salary pension and 2 years CARE pension from 2008 to 2010.
After that we were robbed of 5 years pension income by the nra moving to 65 on 1/4/2010.

[renrag40]

Hi Short Bloke.
I started in June 85....... just under 23 years in the final salary pension and 2 years CARE pension from 2008 to 2010.
After that we were robbed of 5 years pension income by the nra moving to 65 on 1/4/2010.

As for the pension statement.
If I remember rightly my 2023 statement for the nra 60 pension was £9,587. So, I was pleasantly surprised the figure had risen to £10,884.
Bearing in mind that the most recent statement that we have received was the valuation at the end of March 2023 and the commencement date to receiving the nra 60 pension is 18 months on from that statement. Perhaps I shouldn't have been so surprised.

[short bloke]

Hi Short Bloke.
I started in June 85....... just under 23 years in the final salary pension and 2 years CARE pension from 2008 to 2010.
After that we were robbed of 5 years pension income by the nra moving to 65 on 1/4/2010.

Morning renrag40

Thanks for the reply, and you started a couple of years before me, in March 1987 and you are so right about the move to NRa of 65 totally mugged us off.
Thanks again