Tax free pension lump sum

QrizB

MallyGirl said:

I don't know what an iwdc pension scheme is. Is this your current work pension? If so, are you still contributing to it? If yes, does it support you taking some out while still contributing?

I'm going to guess that it's the Industry-Wide Defined Contribution scheme, run by the various railway companies.

https://member.railwayspensions.co.uk/iwdc-members/Im-still-working/how-the-IWDC-section-works

FIREDreamer

MallyGirl said:

I don't know what an iwdc pension scheme is. Is this your current work pension? If so, are you still contributing to it? If yes, does it support you taking some out while still contributing?

Neither did I, but google helps.

The Industry-Wide Defined Contribution (IWDC) Section is a pension plan within the Railways Pension Scheme (RPS). It's a defined contribution (DC) plan, which means that both the employee and employer contribute to the employee's pension pot. 

dunstonh

Thanks for all your replies and really I’m not stupid but just the fact not knowing how my tax free lump sum is paid to me rings alarm bells because the tax office may just see it as me having an incredibly rich month and taxing accordingly, however if it’s paid direct to my bank account then happy days no need to worry about. 

Tax free cash is tax free and doesn't go through payroll.  So, HMRC wouldn't see it.

Bakingmadboy

Mally girl an iwdc pension is a defined contribution pension which most people have, I’m not still contributing and it’s not my current workplace pension. but it is still invested so I can take some of it .