DB Pension and tax advice please .

alfmurph

Published my wife's details before .
Basically she is retiring end of march with 2 options she prefers rather than cetv .
1 - 17k
2 - 13k plus 85k lump sum .
Now she has letter in her hand that says she could have a split between option 1 and 2 .
I presume this means taking say 15k will give her 44.5k lump sum . Is that how it works .
Also she has been asked to work an extra 2 or 3 months by her company . Only part time with part time wages 26k so keeping paying her pension would lower her final salary.
Would she be better not returning her pension form for a couple of months so she will pay less tax while still working and start her pension when she finishes .
Also i heard because of the markets now being down pension companies will pay bigger cetv . Is this true .
And she finished working full time in january being paid 46k . Part time in feb she reduced to 26k .
In her letter it said final salary 26k . When she asked her hr about this they said 26k was her final salary when she finished first time this march . Has there been a mistake or will 2 months at 26k not affect her pension .

Dazed_and_C0nfused

I presume this means taking say 15k will give her 44.5k lump sum . Is that how it works .

It will work in accordance with the scheme rules.  Have you read them?

Only part time with part time wages 26k so keeping paying her pension would lower her final salary.

Final salary pensions are usually based on the final FTE salary.  No the actual part time salary.  Have you read the scheme rules?

Would she be better not returning her pension form for a couple of months so she will pay less tax while still working and start her pension when she finishes .

In what way would it be "better"?  Would her pension scheme pay her X months pension when she does eventually retire? 

And she finished working full time in january being paid 46k . Part time in feb she reduced to 26k .
In her letter it said final salary 26k . When she asked her hr about this they said 26k was her final salary when she finished first time this march . Has there been a mistake or will 2 months at 26k not affect her pension .

Is the £17k based on a final salary of £46k or £26k?

alfmurph

Maybe i'm thinking too much . Thanks for your calmness dazed .
So back too option 2 then . 13k plus 85k lump with no worries about losing out as pension based on full time salary and collecting asap with the tax we pay being the tax we pay .
Only thing you did not answer was would cetv go up significantly because of stock market situation . If so can we ask for revised cetv .

Albermarle

Only thing you did not answer was would cetv go up significantly because of stock market situation . If so can we ask for revised cetv .

The only way to get an answer to this would be to ask for a new CETV.