Maximum tax free cash available on an 80th accrual scheme

Pythagorous

I'm a USS scheme member which has retirement benefits of an 80ths accrual pension and an additional cash benefit of 3N/80.

I also have a money purchase pension pot that I pay AVCs into. I'm trying to project what amount of my AVC pot I will be to take as tax free cash given that the tax free cash limit is 25% of the lifetime allowance value of your pension. In other words how is the LTA calculated and how much of the LTA is used up by the 3N/80 tax free cash provided by the defined benefit pension?

Any thoughts?

Stochasticity

At the point of crystallisation:

LTA used = pension x 20 + lump sum (for the USS scheme)

LTA used = AVC fund value (for the AVCs)

Unless the sum of the above exceed £1.5m, you will be able to take 25% of the AVCs as tax-free cash.

danielmorris

Yap! It’s a great scheme I think it will be enough for retirement pension.