Got a DB and DC pension scheme, I don't want to commute any DB for tax-free cash, Can I?

green.lander_2

Hi RogerPensionGuy,

I am in a similar position to you with DC and DB pots. I did find out that in my DC pot i have a small AVC of around £15k that my DB scheme allow to take all as take free so it may be worth checking.

zagfles

GunJack said:

but then the scheme rules of the DB should prevent it happening, as if you took a TFLS from the DB it should be commuted down accordingly. If they were all DC pots, no problem...

Eh? Should prevent what happening?

RogerPensionGuy

RogerPensionGuy said:

Got a DB and DC pension scheme, I don't want to commute any DB for tax-free cash, can I?

I have a good DB deferred scheme that is inflation indexed linked up to 5% PA and am intending to activate it just after the 6th of April 2024 (35K PA) when hopefully it will not get any LTA % tag applied to it and this timing maybe helpful should the LTA or anything like it be put back on the pension table as I am guessing somthink will be invented or reinvented in 2025 or 2026.

I also have a 500K DC pot approximately and stopping paid employment before xmas this year.

Under the current rules the above looks like a 1.2M pension overall so I am somewhat happy.

Does anyone know if under the new rules if I can take the maximum 268K tax-free from the DC pot or is it only possible to take 25% maximum from any pension pot?

Reason being I really have a good use for 268K cash next year but, would much rather that I don't commute any DB value to get any tax-free out of it. 

The video below is a good one and mentions how this 268K or 25% may be achieved across various pension pots, I am hoping that I can suck out 268K outa my DC pot and leave the DB undiluted. The video at time/in between 4mins to 6mins covers my question. However all the video is well worth a watch, its a great channel. 

https://youtu.be/wJBTItv5JSM

If anyone has any more up to date info please post.

The link below was released today, I tried reading it but just got too confused.com, can any good reader(smart-person) tell me if my plan above of not commuting any of my DB scheme and chunking out that maximum 268K Tax-Free cash out of a DC scheme?
.
https://www.gov.uk/government/publications/abolishing-the-pensions-lifetime-allowance

NoMore

RogerPensionGuy said:

RogerPensionGuy said:

Got a DB and DC pension scheme, I don't want to commute any DB for tax-free cash, can I?

I have a good DB deferred scheme that is inflation indexed linked up to 5% PA and am intending to activate it just after the 6th of April 2024 (35K PA) when hopefully it will not get any LTA % tag applied to it and this timing maybe helpful should the LTA or anything like it be put back on the pension table as I am guessing somthink will be invented or reinvented in 2025 or 2026.

I also have a 500K DC pot approximately and stopping paid employment before xmas this year.

Under the current rules the above looks like a 1.2M pension overall so I am somewhat happy.

Does anyone know if under the new rules if I can take the maximum 268K tax-free from the DC pot or is it only possible to take 25% maximum from any pension pot?

Reason being I really have a good use for 268K cash next year but, would much rather that I don't commute any DB value to get any tax-free out of it. 

The video below is a good one and mentions how this 268K or 25% may be achieved across various pension pots, I am hoping that I can suck out 268K outa my DC pot and leave the DB undiluted. The video at time/in between 4mins to 6mins covers my question. However all the video is well worth a watch, its a great channel. 

https://youtu.be/wJBTItv5JSM

If anyone has any more up to date info please post.

The link below was released today, I tried reading it but just got too confused.com, can any good reader(smart-person) tell me if my plan above of not commuting any of my DB scheme and chunking out that maximum 268K Tax-Free cash out of a DC scheme?
.
https://www.gov.uk/government/publications/abolishing-the-pensions-lifetime-allowance

Being discussed here, LTA abolition from 2024 — MoneySavingExpert Forum the general interpretation is yes you can get the 268k from your Dc pension alone as LTA abolished so DB pension uses none of the new Tax free pension amount when you don't take PCLS from it. BUT this is currently only a proposal so when it comes to it being actual law double check that its sill the case.

EDIT: I misunderstood the OP's intentions (see Linton below), sorry Roger doesn't look like you can do what you want.

Pat38493

NoMore said:

RogerPensionGuy said:

RogerPensionGuy said:

Got a DB and DC pension scheme, I don't want to commute any DB for tax-free cash, can I?

I have a good DB deferred scheme that is inflation indexed linked up to 5% PA and am intending to activate it just after the 6th of April 2024 (35K PA) when hopefully it will not get any LTA % tag applied to it and this timing maybe helpful should the LTA or anything like it be put back on the pension table as I am guessing somthink will be invented or reinvented in 2025 or 2026.

I also have a 500K DC pot approximately and stopping paid employment before xmas this year.

Under the current rules the above looks like a 1.2M pension overall so I am somewhat happy.

Does anyone know if under the new rules if I can take the maximum 268K tax-free from the DC pot or is it only possible to take 25% maximum from any pension pot?

Reason being I really have a good use for 268K cash next year but, would much rather that I don't commute any DB value to get any tax-free out of it. 

The video below is a good one and mentions how this 268K or 25% may be achieved across various pension pots, I am hoping that I can suck out 268K outa my DC pot and leave the DB undiluted. The video at time/in between 4mins to 6mins covers my question. However all the video is well worth a watch, its a great channel. 

https://youtu.be/wJBTItv5JSM

If anyone has any more up to date info please post.

The link below was released today, I tried reading it but just got too confused.com, can any good reader(smart-person) tell me if my plan above of not commuting any of my DB scheme and chunking out that maximum 268K Tax-Free cash out of a DC scheme?
.
https://www.gov.uk/government/publications/abolishing-the-pensions-lifetime-allowance

Being discussed here, LTA abolition from 2024 — MoneySavingExpert Forum the general interpretation is yes you can get the 268k from your Dc pension alone as LTA abolished so DB pension uses none of the new Tax free pension amount when you don't take PCLS from it. BUT this is currently only a proposal so when it comes to it being actual law double check that its sill the case.

Probably but need to wait until the new legislation is actually in force and make sure it is still the same in this respect.

Linton

NoMore said:

RogerPensionGuy said:

RogerPensionGuy said:

Got a DB and DC pension scheme, I don't want to commute any DB for tax-free cash, can I?

I have a good DB deferred scheme that is inflation indexed linked up to 5% PA and am intending to activate it just after the 6th of April 2024 (35K PA) when hopefully it will not get any LTA % tag applied to it and this timing maybe helpful should the LTA or anything like it be put back on the pension table as I am guessing somthink will be invented or reinvented in 2025 or 2026.

I also have a 500K DC pot approximately and stopping paid employment before xmas this year.

Under the current rules the above looks like a 1.2M pension overall so I am somewhat happy.

Does anyone know if under the new rules if I can take the maximum 268K tax-free from the DC pot or is it only possible to take 25% maximum from any pension pot?

Reason being I really have a good use for 268K cash next year but, would much rather that I don't commute any DB value to get any tax-free out of it. 

The video below is a good one and mentions how this 268K or 25% may be achieved across various pension pots, I am hoping that I can suck out 268K outa my DC pot and leave the DB undiluted. The video at time/in between 4mins to 6mins covers my question. However all the video is well worth a watch, its a great channel. 

https://youtu.be/wJBTItv5JSM

If anyone has any more up to date info please post.

The link below was released today, I tried reading it but just got too confused.com, can any good reader(smart-person) tell me if my plan above of not commuting any of my DB scheme and chunking out that maximum 268K Tax-Free cash out of a DC scheme?
.
https://www.gov.uk/government/publications/abolishing-the-pensions-lifetime-allowance

Being discussed here, LTA abolition from 2024 — MoneySavingExpert Forum the general interpretation is yes you can get the 268k from your Dc pension alone as LTA abolished so DB pension uses none of the new Tax free pension amount when you don't take PCLS from it. BUT this is currently only a proposal so when it comes to it being actual law double check that its sill the case.

I thought the OP was wanting to take the DB TFLS equivalent from his DC pension.  The proposed change to the law could permit £268K to be taken from the DC pension alone but only if that is 25% of the DC pot.  I see no proposal to be able to take one pension's TFLS from a different pension.

Albermarle

Linton said:

NoMore said:

RogerPensionGuy said:

RogerPensionGuy said:

Got a DB and DC pension scheme, I don't want to commute any DB for tax-free cash, can I?

I have a good DB deferred scheme that is inflation indexed linked up to 5% PA and am intending to activate it just after the 6th of April 2024 (35K PA) when hopefully it will not get any LTA % tag applied to it and this timing maybe helpful should the LTA or anything like it be put back on the pension table as I am guessing somthink will be invented or reinvented in 2025 or 2026.

I also have a 500K DC pot approximately and stopping paid employment before xmas this year.

Under the current rules the above looks like a 1.2M pension overall so I am somewhat happy.

Does anyone know if under the new rules if I can take the maximum 268K tax-free from the DC pot or is it only possible to take 25% maximum from any pension pot?

Reason being I really have a good use for 268K cash next year but, would much rather that I don't commute any DB value to get any tax-free out of it. 

The video below is a good one and mentions how this 268K or 25% may be achieved across various pension pots, I am hoping that I can suck out 268K outa my DC pot and leave the DB undiluted. The video at time/in between 4mins to 6mins covers my question. However all the video is well worth a watch, its a great channel. 

https://youtu.be/wJBTItv5JSM

If anyone has any more up to date info please post.

The link below was released today, I tried reading it but just got too confused.com, can any good reader(smart-person) tell me if my plan above of not commuting any of my DB scheme and chunking out that maximum 268K Tax-Free cash out of a DC scheme?
.
https://www.gov.uk/government/publications/abolishing-the-pensions-lifetime-allowance

Being discussed here, LTA abolition from 2024 — MoneySavingExpert Forum the general interpretation is yes you can get the 268k from your Dc pension alone as LTA abolished so DB pension uses none of the new Tax free pension amount when you don't take PCLS from it. BUT this is currently only a proposal so when it comes to it being actual law double check that its sill the case.

I thought the OP was wanting to take the DB TFLS equivalent from his DC pension.  The proposed change to the law could permit £268K to be taken from the DC pension alone but only if that is 25% of the DC pot.  I see no proposal to be able to take one pension's TFLS from a different pension.

I did not take the PCLS when I started taking my DB pension, so hopefully now this will increase what I can potentially take from my DC pots. However as you rightly point out my DC pots would have to be over a Million Pounds to take full advantage of this, and unfortunately they are not. Maybe if I hang on a few years and markets have a good bull run, but then probably the legislation will change again.....

Pat38493

Linton said:

NoMore said:

RogerPensionGuy said:

RogerPensionGuy said:

Got a DB and DC pension scheme, I don't want to commute any DB for tax-free cash, can I?

I have a good DB deferred scheme that is inflation indexed linked up to 5% PA and am intending to activate it just after the 6th of April 2024 (35K PA) when hopefully it will not get any LTA % tag applied to it and this timing maybe helpful should the LTA or anything like it be put back on the pension table as I am guessing somthink will be invented or reinvented in 2025 or 2026.

I also have a 500K DC pot approximately and stopping paid employment before xmas this year.

Under the current rules the above looks like a 1.2M pension overall so I am somewhat happy.

Does anyone know if under the new rules if I can take the maximum 268K tax-free from the DC pot or is it only possible to take 25% maximum from any pension pot?

Reason being I really have a good use for 268K cash next year but, would much rather that I don't commute any DB value to get any tax-free out of it. 

The video below is a good one and mentions how this 268K or 25% may be achieved across various pension pots, I am hoping that I can suck out 268K outa my DC pot and leave the DB undiluted. The video at time/in between 4mins to 6mins covers my question. However all the video is well worth a watch, its a great channel. 

https://youtu.be/wJBTItv5JSM

If anyone has any more up to date info please post.

The link below was released today, I tried reading it but just got too confused.com, can any good reader(smart-person) tell me if my plan above of not commuting any of my DB scheme and chunking out that maximum 268K Tax-Free cash out of a DC scheme?
.
https://www.gov.uk/government/publications/abolishing-the-pensions-lifetime-allowance

Being discussed here, LTA abolition from 2024 — MoneySavingExpert Forum the general interpretation is yes you can get the 268k from your Dc pension alone as LTA abolished so DB pension uses none of the new Tax free pension amount when you don't take PCLS from it. BUT this is currently only a proposal so when it comes to it being actual law double check that its sill the case.

I thought the OP was wanting to take the DB TFLS equivalent from his DC pension.  The proposed change to the law could permit £268K to be taken from the DC pension alone but only if that is 25% of the DC pot.  I see no proposal to be able to take one pension's TFLS from a different pension.

Oh!  Yes you are right I think if that is what he is proposing.  You still cannot allocate the TFC from the DB pension to a DC pot that is only 500K and take 268K from the 500K

NoMore

Linton said:

NoMore said:

RogerPensionGuy said:

RogerPensionGuy said:

Got a DB and DC pension scheme, I don't want to commute any DB for tax-free cash, can I?

I have a good DB deferred scheme that is inflation indexed linked up to 5% PA and am intending to activate it just after the 6th of April 2024 (35K PA) when hopefully it will not get any LTA % tag applied to it and this timing maybe helpful should the LTA or anything like it be put back on the pension table as I am guessing somthink will be invented or reinvented in 2025 or 2026.

I also have a 500K DC pot approximately and stopping paid employment before xmas this year.

Under the current rules the above looks like a 1.2M pension overall so I am somewhat happy.

Does anyone know if under the new rules if I can take the maximum 268K tax-free from the DC pot or is it only possible to take 25% maximum from any pension pot?

Reason being I really have a good use for 268K cash next year but, would much rather that I don't commute any DB value to get any tax-free out of it. 

The video below is a good one and mentions how this 268K or 25% may be achieved across various pension pots, I am hoping that I can suck out 268K outa my DC pot and leave the DB undiluted. The video at time/in between 4mins to 6mins covers my question. However all the video is well worth a watch, its a great channel. 

https://youtu.be/wJBTItv5JSM

If anyone has any more up to date info please post.

The link below was released today, I tried reading it but just got too confused.com, can any good reader(smart-person) tell me if my plan above of not commuting any of my DB scheme and chunking out that maximum 268K Tax-Free cash out of a DC scheme?
.
https://www.gov.uk/government/publications/abolishing-the-pensions-lifetime-allowance

Being discussed here, LTA abolition from 2024 — MoneySavingExpert Forum the general interpretation is yes you can get the 268k from your Dc pension alone as LTA abolished so DB pension uses none of the new Tax free pension amount when you don't take PCLS from it. BUT this is currently only a proposal so when it comes to it being actual law double check that its sill the case.

I thought the OP was wanting to take the DB TFLS equivalent from his DC pension.  The proposed change to the law could permit £268K to be taken from the DC pension alone but only if that is 25% of the DC pot.  I see no proposal to be able to take one pension's TFLS from a different pension.

Aah, ok I misunderstood what he was intending to do.

Doctor_Who

Albermarle said:

Linton said:

NoMore said:

RogerPensionGuy said:

RogerPensionGuy said:

Got a DB and DC pension scheme, I don't want to commute any DB for tax-free cash, can I?

I have a good DB deferred scheme that is inflation indexed linked up to 5% PA and am intending to activate it just after the 6th of April 2024 (35K PA) when hopefully it will not get any LTA % tag applied to it and this timing maybe helpful should the LTA or anything like it be put back on the pension table as I am guessing somthink will be invented or reinvented in 2025 or 2026.

I also have a 500K DC pot approximately and stopping paid employment before xmas this year.

Under the current rules the above looks like a 1.2M pension overall so I am somewhat happy.

Does anyone know if under the new rules if I can take the maximum 268K tax-free from the DC pot or is it only possible to take 25% maximum from any pension pot?

Reason being I really have a good use for 268K cash next year but, would much rather that I don't commute any DB value to get any tax-free out of it. 

The video below is a good one and mentions how this 268K or 25% may be achieved across various pension pots, I am hoping that I can suck out 268K outa my DC pot and leave the DB undiluted. The video at time/in between 4mins to 6mins covers my question. However all the video is well worth a watch, its a great channel. 

https://youtu.be/wJBTItv5JSM

If anyone has any more up to date info please post.

The link below was released today, I tried reading it but just got too confused.com, can any good reader(smart-person) tell me if my plan above of not commuting any of my DB scheme and chunking out that maximum 268K Tax-Free cash out of a DC scheme?
.
https://www.gov.uk/government/publications/abolishing-the-pensions-lifetime-allowance

Being discussed here, LTA abolition from 2024 — MoneySavingExpert Forum the general interpretation is yes you can get the 268k from your Dc pension alone as LTA abolished so DB pension uses none of the new Tax free pension amount when you don't take PCLS from it. BUT this is currently only a proposal so when it comes to it being actual law double check that its sill the case.

I thought the OP was wanting to take the DB TFLS equivalent from his DC pension.  The proposed change to the law could permit £268K to be taken from the DC pension alone but only if that is 25% of the DC pot.  I see no proposal to be able to take one pension's TFLS from a different pension.

I did not take the PCLS when I started taking my DB pension, so hopefully now this will increase what I can potentially take from my DC pots. However as you rightly point out my DC pots would have to be over a Million Pounds to take full advantage of this, and unfortunately they are not. Maybe if I hang on a few years and markets have a good bull run, but then probably the legislation will change again.....

And that's one thing you can be certain of!