I'm in the process to be made redundant. For the redundancy payment I have been offered two options.
Option one: I will retain my right to receive a tax free lump sum from the pension scheme on retirement. If I choose to retain this right, the value of my increased exemption is reduced by an amount.
Option two: I will irrevocably waive my right to a tax free lump sum from the pension scheme on reaching retirement age in order to take a higher tax free exemption on my current ex-gratia termination payment.
Questions that I have:
a) Will this waiver only effect the pension scheme of that company that I have been made redundant by?
b) Is this waiver effecting a general right to a future tax free lump sum with a new pension?
c) If I waive the right and I want to combine this with another existing pension into one fund, what would be the result? Can this be combined or not ?
d) Anything else I should be aware of?
Thanks very much in advance, I have been round in circles trying to get some information from both employer and Mercer.
(I posted this on the Tax forum too in case anyone had any information)
Option one: I will retain my right to receive a tax free lump sum from the pension scheme on retirement. If I choose to retain this right, the value of my increased exemption is reduced by an amount.
Option two: I will irrevocably waive my right to a tax free lump sum from the pension scheme on reaching retirement age in order to take a higher tax free exemption on my current ex-gratia termination payment.
Questions that I have:
a) Will this waiver only effect the pension scheme of that company that I have been made redundant by?
b) Is this waiver effecting a general right to a future tax free lump sum with a new pension?
c) If I waive the right and I want to combine this with another existing pension into one fund, what would be the result? Can this be combined or not ?
d) Anything else I should be aware of?
Thanks very much in advance, I have been round in circles trying to get some information from both employer and Mercer.
(I posted this on the Tax forum too in case anyone had any information)