Pension Increase Exchange PIE Flashcards
1
Q
What is Pension Increase Exchange PIE
A
Give up increases to income in retirement for a greater PCLS and / or pension income at the start
2
Q
Benefits of PIE
A
Higher Initial Income
Higher PCLS
Higher Spouses pension
Higher Dependants Pension
3
Q
Who could PIE benefit?
A
- members with Short life expectancy
or - those spending more in the early years of retirement
4
Q
Drawbacks of PIE
A
Member may live past the break even point
Higher value tested against the LTA
Impact on State Benefits
Inflation may be higher than expected
May push member into a higher income tax bracket
