AVC and DBCBS value on pension quotes

[freespeech]

Has anyone noticed that values of AVC's and the cash balance scheme on pension quotes is at least 6 months behind? I would expect them to be a couple of months out in preparing everything for the quote (I don't mean the statement). There was a £10k difference in actual versus quoted in my last quote and this was obvious when I had my final update after leaving RM in April.

Given we all make decisions based on the quotes do they reassess the info given to you and then pay a further amount at a later stage? The annoying thing for me is I am hoping to take max lump sum and without adding on these bits at the start some of that money wont be in the tax free element at all (because AVC's and DBCBS figures should make up your overall pot from which 25% is derived).

[RobertT]

The annoying thing for me is I am hoping to take max lump sum and without adding on these bits at the start some of that money wont be in the tax free element at all (because AVC's and DBCBS figures should make up your overall pot from which 25% is derived).

It's important to realise the value of the pension is the starting point of your calculations. Because to find out how much your 25% tax free lump sum could be, you've first got to work out the other 75%, which is the pension.

For example: An Age60 pension of £12k per year will mean a maximum tax free lump sum of £80k from AVC's/DBCBS.

That would mean an Age60 pot of £320k which is split up as:
75% - £240k pension(12kx20)
25% - £80k tax free lump sum

In that example, if you have more than £80k in AVC's/DBCBS the remainder will usually be paid out as a UFPLS. Alternatively, excess AVC's can be transferred out or rolled over to take with Age65.

To work things out reasonably accurately yourself, you will potentially need to do 4 different calculations, one each for RMSPS Age60, RMSPS Age65 and RMPP Age65, plus if you have any Age60 paid for by the RMPP one for that too.
With RMPP Age65 and any RMPP Age60 being the only parts the DBCBS is 'attached' to.