Help with NRA 60 option 2

[Jack1960]

Yes , i had to change options only after Robert T and a couple of others explained rhe cash balance option, he should be on a retainer from the pension companies.

[RobertT]

Yes , i had to change options only after Robert T and a couple of others explained rhe cash balance option, he should be on a retainer from the pension companies.

As it happens, I have been looking for a part time source of income for when I leave RM.

[Hyrrokkin]

They shouldn't be sending out quotes without including the cash balance fund. This is a large pot of money for some of us. Many won't know you can use some of this pot. Using it as tax free lump sum cash. So you can keep more lump sum money from your NRA60 for your yearly pension salary.

Should be available to see as an extra option. They are dismissing over 4 years, and in some cases over 30k of our pension funds. Until after you decide what option you want to take.

I've never understood why the Cash Balance(DBCBS) and AVC's aren't included in the initial quotes. As you say, it can amount to a large sum of money and could potentially affect the option you choose!

The original idea of the DBCBS was to fund the tax free cash when taking all of your pension benefits – the NRA60 and NRA65.

But RM needed the approval of the Cabinet Office for it to be used for the lump sum associated with RMSPS(upto 2012) benefits. That was refused!

So the DBCBS can only be used to fund the tax free cash for benefits accrued via the RMPP(2012-2018). Meaning the majority can only be taken with NRA65 benefits.

Although some can be taken with the NRA60, as the RMPP are responsible for some inflationary increases to RMSPS benefits.

Does anybody know/asked RM Pensions specifically why they do this ?
How can you make an informed decision which is vital (especially how convoluted and confusing the whole process is) when you have a potential large(ish) chunk of pension not in the initial quotes.

[Jack1960]

You can work out your cash balance by looking at the last statement you received and then add in the weeks since.
I had an idea of what mine was it wasnt far out , 23000 in the end , so i took the maximum tax free as my lump sum , 18.500.
I then took the maximum yearly pension from the other options, except the measly capita one .The cash balance is a sort of trade off , giving you more tax free cash without giving up any your regular income.

[Duran]

You can work out your cash balance by looking at the last statement you received and then add in the weeks since.
I had an idea of what mine was it wasn't far out , 23000 in the end , so i took the maximum tax free as my lump sum , 18.500.
I then took the maximum yearly pension from the other options, except the measly capita one .The cash balance is a sort of trade off , giving you more tax free cash without giving up any your regular income.

You can work out your cash balance pot. What you can't work out is how much you can take tax free with your nra60/65 pensions. Freeing up some of your tax free lump sums from nra60/65 for pension salary.

Making you choose an option without the inclusion of Cash Balance or AVC's is just ludicrous.

[Jack1960]

Yes i should have said that was my nra65 quote