Pensions and Commutation and Index Linking and 55....

#1
Hi

I left in December 2006 after a full 22 years at PO level. I get the pension which is nice, considering it's pretty much just for waking up. I commuted the max amount (forgotten how much), and in four-ish years time I am hitting 55 with the associated index linking. I know that the documents are there which give me a 1.3xxx multiplier on my current pension of £600ish. Any idea what it will be one the commutation is added back in? I've tried many sources to find out, but failed, so just thought I would ask in here. Thanks in advance.
 
#6
Found one on the old Government Archives. Pension for an OR6 in 2006 appears to be £9367, so I'm looking at a 1.2846% increase on that with the current tables. Provided I live that long, of course.
 
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BigD1980

Lantern Swinger
#8
Found one on the old Government Archives. Pension for an OR6 in 2006 appears to be £9367, so I'm looking at a 1.2846% increase on that with the current tables. Provided I live that long, of course.
£9367 in 2006 index linked to today is £12,437.79 so depending on CPI/RPI over the next 3 years it will be a little more than todays price hopefully
 
#9
Quite happy with that to be honest. Add to current salary, self employed earnings, etc, it just gives a lovely target for HMRC to mess up. Having been on the end of one of their errors before (50% tax on projected earnings of around £1.2M!) I can't wait to see this one. Especially when I shift it all abroad...
 

vauxhall

Lantern Swinger
#10
Hi

I left in December 2006 after a full 22 years at PO level. I get the pension which is nice, considering it's pretty much just for waking up. I commuted the max amount (forgotten how much), and in four-ish years time I am hitting 55 with the associated index linking. I know that the documents are there which give me a 1.3xxx multiplier on my current pension of £600ish. Any idea what it will be one the commutation is added back in? I've tried many sources to find out, but failed, so just thought I would ask in here. Thanks in advance.

For Resettlement Commutation (an extra lump sum paid for from pension between leaving and age 55), you apply the multiply to the pension figure before commutation - so apply it to the original pension figure before the reduction was made. Only the 'old and bold' who took Life Commutation (an extra lump sum paid for by giving up pension for life - which is available to VERY few people these day) apply it to the reduced figure.
 
#11
For Resettlement Commutation (an extra lump sum paid for from pension between leaving and age 55), you apply the multiply to the pension figure before commutation - so apply it to the original pension figure before the reduction was made. Only the 'old and bold' who took Life Commutation (an extra lump sum paid for by giving up pension for life - which is available to VERY few people these day) apply it to the reduced figure.

I wish I could remember what my original pension was before commutation. Is there an easy way to work it out based on current gross pension amount?
 

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