only 47 but being offered a cash lump sum from closing pension.

Andy_L

If you take the £80/month option what age is that paid at (60/65/state pension age)& what sort of inflation increases will it get? Unlimited RPI/CPI or capped at x%

Akaroa

Hi Everyone, thank you all for taking time to reply to me. 

I was a bit unsure on the under 55 element as it is not something i have heard of before. However i am not as well versed as i should be. 

I hadn't thought of the option of re-investing into my current work place pension which is something i will consider.  Once again thanks for the replies and re-assurance.

Thanks 
Akaroa

FIREDreamer

Marcon said:

FIREDreamer said:

No MPAA implications presumably?

No - it's a DB scheme.

Morrissons are doing similar to a DC scheme though. Can’t be fair invoking the MPAA in such a scenario.

Marcon

FIREDreamer said:

Marcon said:

FIREDreamer said:

No MPAA implications presumably?

No - it's a DB scheme.

Morrissons are doing similar to a DC scheme though. Can’t be fair invoking the MPAA in such a scenario.

If it's an occupational DC scheme, that too can pay small winding up lump sums if the relevant conditions are met. The MPAA won't be triggered, for the simple reason the member hasn't 'flexibly accessed' their benefits from the scheme in question.

FIREDreamer

Marcon said:

FIREDreamer said:

Marcon said:

FIREDreamer said:

No MPAA implications presumably?

No - it's a DB scheme.

Morrissons are doing similar to a DC scheme though. Can’t be fair invoking the MPAA in such a scenario.

If it's an occupational DC scheme, that too can pay small winding up lump sums if the relevant conditions are met. The MPAA won't be triggered, for the simple reason the member hasn't 'flexibly accessed' their benefits from the scheme in question.

Fair enough. 👍

xylophone

https://techzone.aberdeenadviser.com/public/pensions/Guide-triviality-small-potsCommuting a small pension fund for cash

A trivial commutation lump sum can only be paid if the member has some LSA remaining, even though the payment of the lump sum doesn't actually use up any LSA or LSDBA.The money purchase annual allowance (MPAA) is not triggered.

Winding-up lump sums - occupational schemes

The triviality rules can be used where a defined benefit or defined contribution occupational pension scheme is being wound up.

The requirements are:

• The occupational pension scheme is winding-up
• The value of their pension rights under that scheme is within the trivial commutation limit of £18,000 - pension rights in other schemes can be ignored
• There is no minimum age to take a winding-up lump sum.
• The payment extinguishes all the rights under that scheme
• If the employer made contributions to that scheme in the last five years for the member receiving the winding-up lump sum the employer must:
  
  
  • not make contributions under any other registered pension scheme for the member, and
  • confirm to HMRC it won't make any contributions for at least a year from the date the winding-up lump sum is paid