Accessing Pension Fund - Advice needed

moneydragon

Hi

I am in receipt of a monthly local government pension as three years ago at the age of 55 I retired, at the same time I also received a tax free lump sum.

I would now like to help my daughter through her university course and would like to draw £25k.

I understand that come April I am able to draw on the remaining pot.

Would much appreciate any advice on how to go about this

xylophone

You are receiving your LGPS pension and have taken your lump sum- why do you think that there is another lump sum to take?

moneydragon

xylophone wrote: »

You are receiving your LGPS pension and have taken your lump sum- why do you think that there is another lump sum to take?

As I understand with the new law which comes into effect in April 2015, anyone with a pension has the freedom to draw what and when they want from their pension - correct me if I am wrong.

Yes, I had a lump sum three years ago and that went to pay my mortgage off and now I want to support my daughter through uni

Linton

moneydragon wrote: »

As I understand with the new law which comes into effect in April 2015, anyone with a pension has the freedom to draw what and when they want from their pension - correct ........

Not once you have started drawing the money from a DB pension.

agarnett

Linton wrote: »

Not once you have started drawing the money from a DB pension.

Does this news vary that ?

gamakly

Hi, I have a similar question. I also took a small lump sum from my pension about 6yrs ago. I receive only a small pension of about £34 a month and, following the new government announcement, would like to take the remainder as a lump sum.

xylophone

The OP does not have an annuity.

She is receiving a pension from a defined benefit scheme.

moneydragon

Linton wrote: »

Not once you have started drawing the money from a DB pension.

Thanks Linton, do you know where I can find where this applies?

gamakly

Mine is from marks and spencer. Does that make a difference?

Drp8713

moneydragon wrote: »

Thanks Linton, do you know where I can find where this applies?

You can read the LGPS regulations if you wish, but its not a good read.


You cannot transfer out as you are in receipt of the pension.


The April 2015 pension changes are for DC schemes and have no impact on the LGPS.


The only possible way would be under trivial commutation, for which you need to be 60, and you are 58 it appears.


Also now your pension in payment it is valued as 25 times the pension for Lifetime Allowance purposes, so it would need to be less than £1200 per annum.


Finally, your local authority would have to allow trivial commutation for pensions already in payment and nearly all of them don't, as although it is good for reducing liabilities it is too much additional work.

xylophone

The April 2015 pension changes are for DC schemes and have no impact on the LGPS.

Not exactly although it is true that they have no relevance to the OP's situation.

http://www.thisismoney.co.uk/money/pensions/article-2700019/Key-points-Governments-pension-freedom-plans.html