three db pensions

B

benny fitt

Registered User
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30
Am i right in thinking that the fund values are aggregated and you get 25% tax free lump sum with the balance as ARF?
Are there better strategies to deal with each fund seperately?
 
If the benefits are under Defined Benefit schemes, then NO.
The 25% lump sum and ARF option are only available under Defined Contribution schemes.
In your case your lump sum (commutation of part of the DB pension) is based on your years of service and salary in each scheme. If they are 3 separate schemes, then you will have to find out from each scheme what the exact make up of benefits will be:
- how much as a lump sum, and
- what the residual pension will be.
You might investigate whether any of the schemes will offer a Transfer Value (in lieu of the guaranteed pension ), in which case you might be able to effectively convert the DB into D.C. (but whether this is a good idea or not is something which might require detailed examination).
 
Conan said:
If the benefits are under Defined Benefit schemes, then NO.
The 25% lump sum and ARF option are only available under Defined Contribution schemes.
In your case your lump sum (commutation of part of the DB pension) is based on your years of service and salary in each scheme. If they are 3 separate schemes, then you will have to find out from each scheme what the exact make up of benefits will be:
- how much as a lump sum, and
- what the residual pension will be.
You might investigate whether any of the schemes will offer a Transfer Value (in lieu of the guaranteed pension ), in which case you might be able to effectively convert the DB into D.C. (but whether this is a good idea or not is something which might require detailed examination).
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Thanks for that.Each scheme is DC,so does that mean years of service and salary are not relevant?Thanks in advance
 
Benny Fit, your original post said 3 DB schemes. If it's 3 DC schemes, then your options are different and potentially complicated.
You need to seek professional advice.
 
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