Tax free cash from multiple pensions (DB & DC)

markandjayne

Hi
Does anyone know the rules when retiring and taking tax free cash if someone has several pensions please?
I have a defined benefits pension with the NHS, a free standing AVC and a personal pension.
When I retire, I have an option to take tax free cash from each of these.
Does anyone know if I can take all of the tax free cash that I am entitled to (ie tax free cash from NHS DB scheme + tax free cash from FSAVC + tfc from PP) all from the personal pension? This would allow me to draw a full DB pension from the NHS, without reducing the tax free cash I can take
This would effectively be transferring tax free cash entitlement between pensions.
Hope that makes sense!

mania112

You can take Tax Free Cash from all of these pensions individually. I think you know that bit.

You can take some (or potentially all) of the NHS tax free cash from your AVC, saving on a reduction in NHS pension - assuming the AVC is connected to it and not from a different employment?

The PP is separate from the other 2 and stands alone (you can take 25% from it).

jem16

mania112 wrote: »

You can take some (or potentially all) of the NHS tax free cash from your AVC, saving on a reduction in NHS pension - assuming the AVC is connected to it and not from a different employment?

The NHS scheme does not allow the tax free cash to come from the AVC pot.

The PP is separate from the other 2 and stands alone (you can take 25% from it).

Basically all 3 are separate entities and you will only be allowed to take the maximum of 25% from each. They cannot be combined.

mania112

Fair enough. Ignore my post and stick with Jem16!

They're all separate entities.

xylophone

Is the free standing AVC necessarily anything to do with the NHS pension? http://www.financial-ombudsman.org.uk/publications/technical_notes/FSAVC.html

Would it be possible to transfer FSAVC and PP into a SIPP and if the OP has £20000 of secured income from NHS or in combination with state pension, enter flexible drawdown? http://www.hl.co.uk/pensions/income-drawdown/what-is-flexible-drawdown

Is it compulsory to take a lump sum from the NHS pension? If not, and flexible drawdown is available to OP, it might be preferable not to take a lump sum from NHS pension at all?

jem16

xylophone wrote: »

Is it compulsory to take a lump sum from the NHS pension? If not, and flexible drawdown is available to OP, it might be preferable not to take a lump sum from NHS pension at all?

It depends on which section the OP belongs to. If 1995 section then lump sum is automatic 3x pension and you don't have an option not to take it.

markandjayne

Thanks so much for the info. Sounds like I can forget about my marvellous idea of taking max income from nhs scheme, as I am in 1995 one. Shame.

lordmukk

ALL i want to know is how much a married couple can havein the bank before it affects ones benefits.

xylophone

ALL i want to know is how much a married couple can havein the bank before it affects ones benefits.

Which benefits?