# Redundancy and Waived/Retain Right on Pension Lump Sum



## mollymc (28 Aug 2014)

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)


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