BT Pension (B) Question Early Activation Impact on my DC pension Contributions

BTTB

Hi I am looking for some advice as I'm sure someone will have already been through this process before.


I have both a Defined Benefits Pension (Deferred BT Pension (Scheme B) from my 20 years previous service and I have a current Defined Contribution pension, which I have been contributing for the past 15 years, and would like to continue to contribute.



I'm now 55yrs young :j, I am looking to activate my BT Pension as I plan to use the lump sum to pay off my remaining mortgage and put the rest in to an ISA. I'd then get a yearly BT pension of £9k which will give me the opportunity to reduce my hours at work to enjoy my hobbies :cool:.


My question is:


If I activate my Defined Benefits BT pension what, if any impact will it have on my future contributions into my Defined Contribution pension as at present the company pay in £5k per year which I match to currently I have @ £10k paid into my DC pension.

xylophone

Taking a DB scheme pension is not a trigger for MPAA if that is your concern.

https://www.pruadviser.co.uk/knowledge-literature/knowledge-library/money-purchase-annual-allowance-mpaa/

Defined Benefit arrangements
If you receive a scheme pension from any defined benefit arrangement this will not trigger the MPAA.

BTTB

Hi Xylophone



Thanks for you reply and the link that's really good to know :T


Thanks Again


BTTB




:T