PCLS

Question 1

Is PCLS a BCE?

Answer 1

YES BCE6

Question 2

Calculate maximum PCLS from a DB Scheme

Final Salary £72,000 20years service 1/60th

PCLS Scheme rules 3/80 of FS

Answer 2

20 × 3/80ths × £72,000 = £54,000.

72000/80=900

20*(3*900)=54000

Question 3

How Much PCLS can be taken when someones benefits breach the LTA

Answer 3

Max PCLS is 25% of LTA (assuming no transitional protection in place)

Question 4

Taking PCLS from an AVC attached to a DB Scheme

Answer 4

PCLS can be taken first to avoid commuting any pension

Question 5

Impact on overall of transferring fromDB to DC

Answer 5

??

Question 6

PCLS & Reduced pension calc

Answer 6

Amrit’s final remuneration was £72,000. We can calculate his PCLS and his reduced pension as follows. • Amrit will be entitled to a PCLS of 20 × 3/80ths × £72,000 = £54,000. • For every £12 of PCLS his pension will be reduced by £1. • The reduction in his pension is therefore £54,000 ÷ 12 = £4,500. • His annual pension will be reduced to £24,000 – £4,500 = £19,500.

Question 7

pension Lifetime Annuity

PCLS Timing

Answer 7

PCLS can be paid, window starting 6moths befort the income and ending 12 months after.