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
Tax free lump sum £25,000
Is the above correct......Many thanks.
Please note I have not included any DBCBS pension.
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%.