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Maximising USS pension
Comments
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AlanP_2 said:With the LGPS yopu have to transfer out of the DC scheme associated with the main DB pension if there is any residual after TFLS and you don't wnat to buy additional DB.
Once transferred it is just a crystalised DC pot.
Do you mean transfer out of USS to something like Fidelity SIPP?
This leaving just a DB pension with USS.0 -
Pretty sure that's what Alan means for the LGPS, yes. I think the same will probably apply to the USS. They charge no fees for administering your DC pension and only a couple of the funds have any charges at all. So once you are no longer an eligible employee I can see they would be keen to get rid of you
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That's right. Your DC pot associated with the DB scheme ends at the point you take the benefits.1
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I'm not sure that is the case with USS. From what I can tell you can leave any residual DC pot with USS. See this USS page (particularly the Using your Investment Builder Pot factsheet linked to at the bottom of the page) and this one too. Just be aware that the withdrawal rules are a bit clunky - it is lump sum (£2k min) max 4x a year (with only the 1st withdrawal a year being free - 2nd to 4th are £90 each time).Mortgage free as of 12/08/20!
MFiT-5 no 45You can't fly with one foot on the ground!1 -
taka said:I'm not sure that is the case with USS. From what I can tell you can leave any residual DC pot with USS. See this USS page (particularly the Using your Investment Builder Pot factsheet linked to at the bottom of the page) and this one too. Just be aware that the withdrawal rules are a bit clunky - it is lump sum (£2k min) max 4x a year (with only the 1st withdrawal a year being free - 2nd to 4th are £90 each time).After already taking max possible TFLS , can it be right that "the first 25% of each payment is tax-free""Cash payments you take from your Investment Builder pot differ from the tax-free lump sum you can take when you retire – they’re subject to tax, so you’ll have to think carefully before taking your cash. If you take cash payments from age 55 but before your 75th birthday, the first 25% of each payment is tax-free. The rest is taxed as pension income."0
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Just dropped an email to USS for clarification on this.1
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Fairly sure that's written with the assumption that tax-free cash is just your 3 x annual salary lump sum, not the DC component.
I'm pretty certain you can transfer out any remaining crystalised DC amount to another provider if you have cash left over after your 25% TFLS.
@PJM_62 - what is the email address for queries btw? I think I looked in the past and failed to find it.
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