Nhs pension question

mumibear

What is the difference between a one off payment with no PCLS
and
one off payment with maximum PCLS ?

xylophone

one off payment with no PCLS
and
one off payment with maximum PCLS ?

Could you explain further about what it is you are trying to do with your NHS pension?

mumibear

xylophone said:

one off payment with no PCLS
and
one off payment with maximum PCLS ?

Could you explain further about what it is you are trying to do with your NHS pension?

Have just retired and have a very small 2015 pension - majority is in 95 scheme
have been given opportunity to convert to a once and for all lump sum the small amount I have in 2015 - given 3 options- 1st pension for life but it’s so small don’t want to take but wanting clarification of tax implications on the no or maximum PCLS ?

xylophone

https://www.nhsbsa.nhs.uk/sites/default/files/2019-01/Trivial commutation factsheet (01.2019) V6.pdf

2015 Scheme: Members of the 2015 Scheme are entitled to a pension only, however some of the pension can be exchanged to provide a lump sum. More information is available on our website: www.nhsbsa.nhs.uk/nhs-pensions. 

Is the above relevant to your case?

The point about a PCLS is that it is normally tax free.  The balance is taxable as income and the tax due depends on an individual's circumstances.

https://www.nhsbsa.nhs.uk/sites/default/files/2017-05/2015 Members Guide (V7) 05.2017.pdf

Check with the administrator.

obfuscate

What is more tax efficient one off payment no PCLS or / maximum PCLS

LHW99

Normally a PCLS is tax free, so taking the maximum might be better if no PCLS puts you into a higher tax bracket?

What are the numbers?