# Question about waiver for tax free lump sum on retirment



## dubliner71 (6 Dec 2010)

Hi,
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?
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) Is there a rule of thumb where option 1 or option 2 should be chosen?

Thanks very much in advance


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## Black Sheep (6 Dec 2010)

You may get more detailed replies if you post your query in the taxation section


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