not on facebook
ANNOUNCEMENT : ALL OF ROYAL MAIL'S EMPLOYMENT POLICIES (AGREEMENTS) AT A GLANCE (UPDATED 2017)... HERE




Pension Supplement counting towards 25% Tax free limp sum....

23 Jul 2019, 15:10

With regard to maximising your AVC tax free lump sum and assuming you leave the company does the pension supplement count towards your 25% tax free lump sum.

Example: NRA 60 Pension £3000, NRA Pension supplement £500,
NRA 65 Pension £500, NRA Pension supplement £100.

Total combined pensions (assuming taken at correct age) £4100 x 20= £82,000

AVC Total £18,000

Total £100,000

Tax free lump sum £25,000


Is the above correct......Many thanks.

Please note I have not included any DBCBS pension.

Pension Supplement counting towards 25% Tax free limp sum....

23 Jul 2019, 15:20

The supplement doesn't count towards your tax free cash as such, but it does count towards your total pot value, which is what I think you're trying to say?

But the answer to your question is yes!

Consult page 12 of your plan guide for confirmation.

In your example, you could take the full £18k as tax free cash and then if you wanted, commute some of your pension to make the lump sum up to 25%.

Pension Supplement counting towards 25% Tax free limp sum....

23 Jul 2019, 20:48

Thanks Robert.

Previous page Next page


Page 1 of 1