08 Jan 2020, 14:20
Hi I have a sec a/b deferred final salary pension which provides a lump sum and yearly pension when I reach 60. I do not have any other royal mail pensions. My question is do I have the option of converting some of the yearly pension to boost the existing lump sum and if so to calculate the value of the pension pot do I just times the yearly pension by a theoretical commutation rate ( 20 appears to be reasonable) and add the lump sum to the total. I assume that if I then divide the total figure by 4 this would give me the total lump sum available to me. Sorry if this does not make sense or if I am talking rubbish please say so.
08 Jan 2020, 17:33
You've described the process pretty well!
The maths is:
Yearly pension x 20 + standard lump sum(sections A&B) + AVC's(if applicable) = total pot value
Maximum lump sum = 25% of total pot value.
Take a look at page 12 of the latest version of the plan guide, available to view here: https://www.royalmailpensionplan.co.uk/ ... ts/library