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Pension / lump sum query.

Discussion in 'Retirement' started by Jeannine34, Sep 29, 2015.

  1. Jeannine34

    Jeannine34 New commenter

    I recently received my lump sum, which was exactly the value stated on the letter from the TPS. However, my first payslip, for the first pension payment next week, shows a different amount than I was expecting. It is less than a third of the lump sum.

    I am going to phone TPS to query this but I wondered if anyone had found the same. Is the lump sum exactly three times the pension, or am I missing something? Or could the TPS possibly have made a mistake?
     
  2. lindenlea

    lindenlea Star commenter

    I thought it was a third. I'm presuming you've accounted for tax.
     
  3. Jeannine34

    Jeannine34 New commenter

    Just looking at the gross pension pa. Lump sum wasn't taxed...
     
  4. lizziescat

    lizziescat Star commenter

    Lump sum isn't taxed but your income (pension) is. Are you referring to your gross or net pension?
    Your income after tax will be less than third of lump sum.

    I assume you didn't take an enhanced lump sum
     
  5. old_dobbin

    old_dobbin Occasional commenter

    I think the amount of your first pension payment depends upon whether you were due to be paid for the whole month or a part of the month, depending on the number of days between your retirement date and the date of your pension payment, which is the day before your birthday.
     
    Jeannine34 likes this.
  6. Jeannine34

    Jeannine34 New commenter

    old_dobbin - of course!! I'd completely forgotten about that. There's only one day difference in the dates but that explains it. Thank you so much!!

    (I just tried phoning the TPS but their computer systems are down...!)
     

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