I am looking at a PS pension scheme, which has two options for pension benefits.
(1) pension plus lump-sum (typical case)
Pension = (1/80)(yrs)(pensionable salary- 2x SPC)
where lump-sum is (3/80)(yrs) = a max of 1.5x final salary
(2) other option - no lump sum - bigger pension
Pension = (1/60)(yrs) (pensionable salary - 1.5x SPC)
I have not seen this choice before in PS pensions.
I am trying to weigh up the pros and cons of the two options.
I realise it is related to income tax / life expectancy, etc.
I welcome any comments, thank you.
(1) pension plus lump-sum (typical case)
Pension = (1/80)(yrs)(pensionable salary- 2x SPC)
where lump-sum is (3/80)(yrs) = a max of 1.5x final salary
(2) other option - no lump sum - bigger pension
Pension = (1/60)(yrs) (pensionable salary - 1.5x SPC)
I have not seen this choice before in PS pensions.
I am trying to weigh up the pros and cons of the two options.
I realise it is related to income tax / life expectancy, etc.
I welcome any comments, thank you.