Hi guys,
I think there is an easy answer to this, but it's not 100% clear anywhere I have read.
Say I was a contributing member of a defined benefit scheme to end of 2004... then switched company and started a company PRSA, but remained a dormant member of the other company's scheme. (That other company's scheme is likely to be wound up, but that may take some time and probably does not affect the question)
Now say I am made redundant. For calculating tax-free limits either the increased exemption calculation or the SCSB calculation there is this proviso... "The increased exemption or the SCSB must be reduced by any tax-free lump sum received or the net present value of a future tax-free lump sum receivable under an approved pension scheme, unless the claimant waives their right to the lump sum."
So since I am still a member of the previous DB scheme does this affect me? Or is it irrelevant since it is a previous employment. It would seem a difficult calculation to work out. And yes, the company should be doing this, but since this is the first redundancy and HR/finance is in Scotland there's some confusion.
I should clarify that it is a colleague being made redundant and the SCSB is useful because service was transferred from the other company (spin-off scenario) and hence is quite long.
Ix.
I think there is an easy answer to this, but it's not 100% clear anywhere I have read.
Say I was a contributing member of a defined benefit scheme to end of 2004... then switched company and started a company PRSA, but remained a dormant member of the other company's scheme. (That other company's scheme is likely to be wound up, but that may take some time and probably does not affect the question)
Now say I am made redundant. For calculating tax-free limits either the increased exemption calculation or the SCSB calculation there is this proviso... "The increased exemption or the SCSB must be reduced by any tax-free lump sum received or the net present value of a future tax-free lump sum receivable under an approved pension scheme, unless the claimant waives their right to the lump sum."
So since I am still a member of the previous DB scheme does this affect me? Or is it irrelevant since it is a previous employment. It would seem a difficult calculation to work out. And yes, the company should be doing this, but since this is the first redundancy and HR/finance is in Scotland there's some confusion.
I should clarify that it is a colleague being made redundant and the SCSB is useful because service was transferred from the other company (spin-off scenario) and hence is quite long.
Ix.