Using Triggered DB pension to pay into new DC pension pot

xylophone

I will email the provider to check but as our company scheme deficit was all paid up on purpose to get us out of the scheme I am almost certain I have to take it at 50 next year (the other staff were already over 50 and got theirs straightaway)

But perhaps that was what they wanted whereas you don't necessarily?

Are you saying that all members of the scheme have been told that they must take the pension at 50?

Is the scheme in wind up?

It would be wise to check all options before making your decision?

Mick70

Only a handful of us were in the scheme .
The scheme was closed to new employees years ago . I have emailed the pension provider but 99% sure you cannot defer it til a later date

jimi_man

Mick70 wrote: »

apologies for 2nd posting on here today ☺
I was kicked out of our DB pension scheme this year, as had protected status it will be triggered next May when turn 50. we have been enrolled now into a new DC pot where I and the employer are contributing into monthly.
The DB pension will be approx £26.7k pa rising with rpi
While I am still employed I do not need access to this pension money but would like to get my DC pot built up as quickly as possible .
The pension of £26.7k will all be taxed at 40% as i am a 40% tax payer salary.
Any advice is appreciated on how best to get as much as possible of this DB £26.7K pension into my DC pot each year
My understanding is that the 26.7 will be taxed at 40% leaving only 16k going into my bank each year (1.33k per mth?) and as such I should increase my employee contributions by 1.33k per month ? but is the 40% tax simply lost ? is there any way i can get more of this db pension into my dc pot over the years ?

thanks for any help with this

Mick

Hi

I replied on the other thread, but essentially you should be able to get all of the £26.7K into your pension every year. You'll get 20% added on immediately and then claim the other 20% through your tax return.

Think of it as if you got a payrise of £26.7K. You could 'salary sacrifice' that amount into your pension and it would be paid gross - i.e. the whole amount. This is the same principle.

I don't know how far into the 40% bracket you are, and I don't know how much of your salary you already pay into the pension either. However just remember that there is a £40K max per year, so after this £26.7K that leaves £13K of your normal salary available to be paid in.

The LTA won't present a problem, as by not transferring your CETV you've done very well out of that side of things.

Paul_Herring

However just remember that there is a £40K max per year

Unless they've got more than £150K (adjusted) income, in which case it's less.

Mick70

Paul_Herring wrote: »

Unless they've got more than £150K (adjusted) income, in which case it's less.

i wish - no that wont be an issue here

Mick70

jimi_man wrote: »

Hi

I replied on the other thread, but essentially you should be able to get all of the £26.7K into your pension every year. You'll get 20% added on immediately and then claim the other 20% through your tax return.

Think of it as if you got a payrise of £26.7K. You could 'salary sacrifice' that amount into your pension and it would be paid gross - i.e. the whole amount. This is the same principle.

I don't know how far into the 40% bracket you are, and I don't know how much of your salary you already pay into the pension either. However just remember that there is a £40K max per year, so after this £26.7K that leaves £13K of your normal salary available to be paid in.

The LTA won't present a problem, as by not transferring your CETV you've done very well out of that side of things.

Yeah Jim I now realise I can claim back 20% through my annual tax returns, just will always be out of sync and a bit messy , then get that into my DC pot the following year .
thanks for taking time to reply

sandsy

Why isn't your adviser looking at this for you?

Having advised you that it's not in your best interests to transfer, he could still advise you on the best way to meet your objective of using the excess income from that scheme to build up greater DC entitlements.

Mick70

sandsy wrote: »

Why isn't your adviser looking at this for you?

Having advised you that it's not in your best interests to transfer, he could still advise you on the best way to meet your objective of using the excess income from that scheme to build up greater DC entitlements.

once i have formal notice that advice is to stay and I accept that advice, I will put that to the IFA