PENSION PLANNING FREQUENTLY ASKED QUESTIONS

How do I take more lump-sum?

Answer

Only service before 1 January 2007 entitles you to an automatic lump sum when you take benefits.

If you only have final salary service after that date, or have any career average service, you’ll not receive an automatic lump sum when you take your benefits. However, you can choose to give up part of your pension to receive a lump sum. Your pension will be reduced and you must make your decision when completing your application form.

For each £1 of pension that you give up you’ll receive £12 of lump sum. The maximum amount of lump sum that you can receive is 25% of the total value of your benefits. To work out the maximum additional lump sum for the 80th scheme use the following calculation:

Annual Pension multiplied by 33, and divided by 14

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