Barclays Final Salary pension GMP/Excess revaluation & Anti-franking

MikeFloutier

Thanks SnowMan, and yes it is the case with the Barclays Scheme that the widows' benefits remain the same regardless of the Lump Sum.

Regarding the commutation factor, with this Scheme it is slightly over 18 which I believe is reasonable.

I would like to run my thoughts and circumstances regarding the Lump Sum by you guys if that's ok. Do you think it best to start a new thread or shall I just carry on on this one for the sake of continuity?

MikeFloutier

Ok, well my feeling is that I should take the minimum PCLS possible, commensurate with my short term needs.

I am, however, concerned about recycling so I'll start another thread regarding this.

xylophone

Is taking a lump sum compulsory?

MikeFloutier

No but due to various reasons taking 50% of the maximum would be helpful.

xylophone

taking 50% of the maximum would be helpful.

Cigarettes 'n whisky 'n wild, wild wimmin?:rotfl:

http://www.scottishwidows.co.uk/Extranet/Literature/Doc/FP0289 this note might be worth a look?

MikeFloutier

Thanks Xylophone,

Haha, I was just about to start a new thread regarding the PCLS recycling issue which included - this link. Example 1 seems to be pretty similar to my situation.

Since leaving Barclays in 1994 I haven't contributed to any pension (apart from £800 to start a SIPP a few years back) so I'm now looking to make some provision; albeit a little late (I'm probably going to continue in self-employment for at least another 5 years).

From my reading of various HMRC documents and other sources I can contribute 30% of my PCLS over the next two years without fear of penalty.

What I'm not clear about is whether I can contribute ALL of my residual pension income (within these two years) - see Example 1 in this Scottish Widows literature

I'm also not clear as to what the situation is AFTER two years.

xylophone

I haven't contributed to any pension (apart from £800 to start a SIPP a few years back)

Already spent on riotous living then

MikeFloutier

'fraid so.....

xylophone

I haven't contributed to any pension (apart from £800 to start a SIPP a few years back)

It seems to me that you could use your pension income for the pension contributions and avoid any recycling concerns - you could then use the lump sum to do whatever you were planning to do with the income?

MikeFloutier

That sounds good but simply using the income rather than the lump sum doesn't (of itself) avoid the recycling penalties.

The truth is that I wasn't planning to anything with the income - funny how it creeps up on you.

Perhaps that fact alone is sufficient.

On the other hand, having said that I want the lump sum to cover certain expenses (that, in the absence of the PCLS, would have come out of the pension income), it could presumably be argued that I'm financing the new pension contributions from the PCLS; albeit indirectly.