SCSB and Redundancy

[CailinBeag]

Hi all,

I am taking redundancy from my employer but I have decided not to waive my right to my Pension Lump sum. In order to calculate my SCSB Irish life have given me two figures for my NPV - Net Present Day Value. The figures are:

Service and Salary Based NPV: €22,723.00
25% of fund value NPV: €50,933.74

I must choose which NPV to use to calculate my tax liability after the basic exemption is applied. If I use the S & S based NPV I pay no tax, if I use the 25% I pay some tax. My question is what happens to my pension lump sum payment in the event that I use that S & S, if anything. I still have 17 years to retirement and don't plan to take my lump sum payment until then.

Thanks

 

[Steven Barrett]

Use the lower one. It is a method of calculating a number in a formula. It has no relevance to the method actually used when you come to retire.

 

[CailinBeag]

Use the lower one. It is a method of calculating a number in a formula. It has no relevance to the method actually used when you come to retire.

Thanks Steven