Accessing DB Pension and increasing Contributions to DC

Fairwinds

I think i can stay within the 30k, but even that calculation is frought with complications.
They closed our DB scheme at the end of September 23, so it gets revalued annually at the end of Sept. My birthday is also Sept., so October seems the ideal time to retire - an increase from DB and a year's less penalty on the remaining third.

So for the DC scheme, I have half a year of contributions 23/24. a full year 24/25 and 25/26 retire in 26/27 - so have a half year there.
So have two half years and a full year to stay under 30k

The issue i have is where do they get the baseline of contributions from - the half year 23/24 or look at DB scheme, which was closed because it was against a capped salary not full current salary. Employee contributions at 6% were failing the minimum gov standard in a lot of individual cases.

DRS1

This page may help and there are some examples a few pages later (of course you may have seen this already).  I thought I had read something that was more on point for your question but can't find it now

PTM133830 - Unauthorised payments: deemed or specific situations that are unauthorised payments: recycling of pension commencement lump sums: significant increase in contributions and cumulative basis - HMRC internal manual - GOV.UK

Basically if you take the lump sum in 25/6 then the test period is 23/4 to 27/8.  The base year is therefore 22/3 but in that year you were in a different scheme.  I think in that case they allow to look at the contributions you would normally make under the new DC scheme but unless it is in these pages and I missed it I must have read that somewhere else.

Triumph13

I would take the key bit as "Even though such an increase might be a significant increase, this would not trigger the recycling rule where the significant increase is not as a result of taking the pension commencement lump sum."

In this case it seems very clear that the significant increase is clearly attributable to not wanting to pay HRT on the DB income, not to recycling the lump sum.  

doodling

Hi,

Fairwinds said:

I think i can stay within the 30k, but even that calculation is frought with complications.
They closed our DB scheme at the end of September 23, so it gets revalued annually at the end of Sept. My birthday is also Sept., so October seems the ideal time to retire - an increase from DB and a year's less penalty on the remaining third.

[...]

It is quite unusual for DB pension schemes to calculate the early retirement adjustment in units of a year - are you sure it isn't the more common months, weeks or even days - it is often the same as the units the pension is accrued in?  I suggest you check the rules of the scheme.

The early retirement factors might be quoted in units of a year, but that is probably to stop the table being somewhat unwieldy for whatever publication it has been included in.

Fairwinds

doodling said:

Hi,

Fairwinds said:

I think i can stay within the 30k, but even that calculation is frought with complications.
They closed our DB scheme at the end of September 23, so it gets revalued annually at the end of Sept. My birthday is also Sept., so October seems the ideal time to retire - an increase from DB and a year's less penalty on the remaining third.

[...]

It is quite unusual for DB pension schemes to calculate the early retirement adjustment in units of a year - are you sure it isn't the more common months, weeks or even days - it is often the same as the units the pension is accrued in?  I suggest you check the rules of the scheme.

The early retirement factors might be quoted in units of a year, but that is probably to stop the table being somewhat unwieldy for whatever publication it has been included in.

Have to admit, you've lost me there - i think i agree, they aren't, but not sure why you think they do .

Cobbler_tone

doodling said:

Hi,

Fairwinds said:

I think i can stay within the 30k, but even that calculation is frought with complications.
They closed our DB scheme at the end of September 23, so it gets revalued annually at the end of Sept. My birthday is also Sept., so October seems the ideal time to retire - an increase from DB and a year's less penalty on the remaining third.

[...]

It is quite unusual for DB pension schemes to calculate the early retirement adjustment in units of a year - are you sure it isn't the more common months, weeks or even days - it is often the same as the units the pension is accrued in?  I suggest you check the rules of the scheme.

Mine is daily with a live view.

DRS1

Fairwinds said:

doodling said:

Hi,

Fairwinds said:

I think i can stay within the 30k, but even that calculation is frought with complications.
They closed our DB scheme at the end of September 23, so it gets revalued annually at the end of Sept. My birthday is also Sept., so October seems the ideal time to retire - an increase from DB and a year's less penalty on the remaining third.

[...]

It is quite unusual for DB pension schemes to calculate the early retirement adjustment in units of a year - are you sure it isn't the more common months, weeks or even days - it is often the same as the units the pension is accrued in?  I suggest you check the rules of the scheme.

The early retirement factors might be quoted in units of a year, but that is probably to stop the table being somewhat unwieldy for whatever publication it has been included in.

Have to admit, you've lost me there - i think i agree, they aren't, but not sure why you think they do .

I think @doodling was just reacting to your comment about a "year's less" penalty on the remaining third.

Fairwinds

DRS1 said:

Fairwinds said:

doodling said:

Hi,

Fairwinds said:

I think i can stay within the 30k, but even that calculation is frought with complications.
They closed our DB scheme at the end of September 23, so it gets revalued annually at the end of Sept. My birthday is also Sept., so October seems the ideal time to retire - an increase from DB and a year's less penalty on the remaining third.

[...]

It is quite unusual for DB pension schemes to calculate the early retirement adjustment in units of a year - are you sure it isn't the more common months, weeks or even days - it is often the same as the units the pension is accrued in?  I suggest you check the rules of the scheme.

The early retirement factors might be quoted in units of a year, but that is probably to stop the table being somewhat unwieldy for whatever publication it has been included in.

Have to admit, you've lost me there - i think i agree, they aren't, but not sure why you think they do .

I think @doodling was just reacting to your comment about a "year's less" penalty on the remaining third.

Ah I see, i'm with you now - one of the frustrations with our scheme, after being sold to a third party, is they won't share any of the factors used - which i find appalling - an undefined, defined benefit scheme if you like