D
dubliner71
Guest
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
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