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LSDBA calculation
Unfortunately I'm in the position of looking at a quote for serious ill health commutation of a DB pension. I'd appreciate help in understanding the LSDBA calculation.
The quote has 3 elements to it: (a) Commutation of the DB pension that would have been received if service had contined to retirement; (b) the standard lump sum that would have been received at normal retirement; and (c) AVCs paid into a DC fund. There is then a calculation for the LSDBA but only the commutation figure is used in this calculation, it seem to assume that the lump sum and AVCs would not be included in the LSDBA.
Does anyone know why this is an whether it is correct? (I am also going to get financial advice but just trying to understand the big picture).
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