over 55 tax free lump sum

Royboy

Hello,

New to the forum so bear with me, I have a deferred pension from NILGOSC and reach 55 in July so I want to find out how to avail of the 25% tax free lump sum. Can I arrange this myself without going through an agent?
Any help appreciated

bigadaj

Wants nilgosc? You need to contact the scheme and find some details, is it defined benefit/ final salary or defined contribution with a pot? If its the former contact the administrators and you can organise yourself, though check penalties for drawing it early and how much a lump sum is costing you in lost pension. If the latter then contact an ifa, they would be paid from the insurers so wouldn't cost you anything and you can then have some confidence of getting a good deal.

Royboy

NILGOSC is the Northern Ireland Local Government Officer's superannuation Scheme. I think it is defined as deferred or frozen. It is from a previous employer and I don't contribute any more.

Royboy

Forgot to mention, it's not a final salary scheme,(unfortunately)

hyubh

Royboy wrote: »

I have a deferred pension from NILGOSC and reach 55 in July so I want to find out how to avail of the 25% tax free lump sum. Can I arrange this myself without going through an agent?

The lump sum is paid when you draw the pension - you can't take it separately. Also, the scheme rules for drawing a deferred pension early are from 55 only with the ex-employer's consent - without that, it's 60 (http://www.nilgosc.org.uk/Leaving_the_Scheme.html).

That said, unless you're looking to transfer out, you don't need an 'agent' or financial adviser for a simple DB scheme - just reading relevant parts of the NILGOSC site and contacting them if you have any queries will be enough.

@bigadaj - NILGOSC is the Northern Irish version of the LGPS, or more exactly, the administrators of the LGPS in NI and its sole fund there.

hyubh

Royboy wrote: »

Forgot to mention, it's not a final salary scheme,(unfortunately)

You sure...?

jem16

Royboy wrote: »

Forgot to mention, it's not a final salary scheme,(unfortunately)

So what is it then?

The link that hyubh gave suggests that it is final salary. Are you referring to AVCs built up?

Royboy

Many thanks everyone, at least I know how to proceed

jem16

Royboy wrote: »

Many thanks everyone, at least I know how to proceed

So what is the pension then?

xylophone

it's not a final salary scheme,(unfortunately)

Can this be so if the scheme is like LGPS?

http://www.nilgosc.org.uk/preserved.htm is worth a read?

atush

Sounds liuke the OP doesn't know what he is trying to do. as the NI LGPS, it pretty much has to be FS/DB.

Taking a FS scheme 5 years early will mean giving up 25% of the pension if not more. Yikes