Defered pensions

kaiserdave

I have 2 deffered pensions both have put into play acturial cut back of 3% and 4% is it possible to  transfer one pot into another or is it frozen until such time as its taken ?

Dazed_and_C0nfused

Actuarial reductions normally relate to defined benefit pensions where there is no "pot".

What pensions do you actually have?

Have you obtained CETV figures for them?

Marcon

Looking at your other thread, these are defined benefit pensions. As I explained then, the pensions aren't frozen: https://forums.moneysavingexpert.com/discussion/6076442/actuarial-cutback#latest

You won't be able to transfer one into the other now you are a deferred pensioner of both schemes.

okmvutrx1

I retired in December 2020 and can have my deferred State pension lump sum paid in tax year 2020/21 when I paid 20%. Alternatively, I can choose to have it paid in tax year 202I/22 - a year in which I do not intend to be doing any paid work - hence will pay 0% tax. Will my decision of when to have the lump sum paid affect the amount of tax that will be deducted from my lump sum? Thank you for your help. 

Dazed_and_C0nfused

Yes, you have to self declare your tax rate to DWP.  Assuming you deferred from pre April 2016.

But not doing any paid work is not what matters, it is your tax rate band you fall in for that year, irrespective of whether you actually pay any tax, so if you are going to have income above your Personal Allowance, for example 51 weeks State Pension plus other taxable income, say interest or dividends, which exceeds your Personal Allowance then 20% tax would be due on the lump sum.

TVAS

Kaiserdave is that after the Kaiser Chefs as I like to call them or the last Kaiser of Imperial Germany? 

They are not FROZEN. They will be revalued increase in line with the scheme rules for each year until you take benefits.

You have to ask one scheme if it can be transferred to another scheme it is not up to us it is up to the Trustees and it must be in the scheme rules.

You also need to ask if the employer is making extra contributions if the scheme is deficit. If they are then the actuarial reduction may be temporary. Is your employer doing well in business? If they are then the scheme is relatively safe for now if not then they may decide to transfer it to the Pension Protection Fund or transfer it to an Insurance Company known as a Bulk Buy Our to secure your DB benefits. Sometimes this is a good deal for members because the insurance company may receive sufficient money to actually increase your benefits.

xylophone

I retired in December 2020 and can have my deferred State pension lump sum paid in tax year 2020/21 

You reached State Pension Age pre 6 April 2016?
See https://www.litrg.org.uk/tax-guides/pensioners/what-state-pension-deferral
under 

What will I get when I claim my deferred state pension?

If you reached state pension age before 6 April 2016

The lump sum is taxable, because the state pension is taxable income. However, it is not taxed in quite the same way as regular state pension income. There is more information on how state pension lump sums are taxed on our page What tax do I pay on my state pension lump sum?.

Linton

okmvutrx1 said:

I retired in December 2020 and can have my deferred State pension lump sum paid in tax year 2020/21 when I paid 20%. Alternatively, I can choose to have it paid in tax year 202I/22 - a year in which I do not intend to be doing any paid work - hence will pay 0% tax. Will my decision of when to have the lump sum paid affect the amount of tax that will be deducted from my lump sum? Thank you for your help. 

You should find that increasing your SP is a much better deal than taking the lump sum, especially if you reached SP Age pre 2016.

If you do take the defered SP lump sum it is taxed according to your tax band without the lump sum so in your circumstances it could be tax free. See https://www.gov.uk/deferring-state-pension/what-you-get