# MNOPF- Lump Sum



## peterh76-86

The statements do not mention anything about a lump sum payment on retirement. Does the MNOPF give a lump sum.


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## derek dee

I got 25 thou of mnrpf which was a very nice totally uexpectored soi expect mnopf will pay a bulk sum but u can phone them


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## WilliamH

Yes they offer a lump sum, I think it is 20% of your pension pot, it is tax free. I was in business when I became eligible for my MN pension and my accountant advised me to take the lump sum, which I did and have never regretted it. My investment ability seems to be better than those of the pension fund trustees.


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## John Cassels

William , it may have been tax free in the UK but was it tax free in France ?.

I checked with the Dutch tax people about the samne question and they 
just laughed !.


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## WilliamH

John Cassels said:


> William , it may have been tax free in the UK but was it tax free in France ?.
> 
> I checked with the Dutch tax people about the samne question and they
> just laughed !.


John,
I was domiciled in the UK when I became eligible for my MN pension at the age of 61 so the lump sum was paid to me free of any tax. I now have to pay tax in France on the returns I make from the lump sum as well as tax on my pensions and other incomes.


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## John Cassels

Up here they would make you pay a tax on your income tax if they could get 
away with it. When I asked about tax free payments , the guy just laughed .


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## LouisB

WilliamH said:


> John,
> I was domiciled in the UK when I became eligible for my MN pension at the age of 61 so the lump sum was paid to me free of any tax. I now have to pay tax in France on the returns I make from the lump sum as well as tax on my pensions and other incomes.


Regarding the vagaries of the taxation system re pensions. At the moment, and after a lot of 'faffing' about and with some help of the MNOPF staff I am about to claim a very small lump sum. It only amounts to around £700 but it is seemingly subject to tax.

Over the years I was working I stayed within the Governments secondary pension scheme - this of course an extra deduction from my salary. With the yearly indexed pension increases this has now pushed me into a taxable earnings bracket and thus, to an extent, nullifying cost of living increases. On top of this, the Revenue have gone back many years into my PAYE salary deductions while working ashore. This revealed an error, by my employers accountant, of under payment of taxes. To even things up the Revenue have put an attachment on my bank account in order to repay the shortfall that happened over six years ago.

Although the above was unknown to me it is apparently MY responsibility to ensure correct deductions were made at the time AND none payment carries severe legal penalties that, if necessary will be applied. All this for less than £2000. The company involved has changed its legal status and is in effect a different company altogether - so no re-dress there.

To me, the whole situation regarding pension taxation seems a somewhat imprecise and whimsical system. The fact of what big business gets away with, also very rich individuals with clever accountants as well, makes me at times, as a member of the peasantry, very angry. I have been told that an appeal would fail, as the law regarding tax deductions is open and shut. Whether or not a company employs an accountant to take care of the PAYE of its employees, the responsibility is YOURS.

Rant over - although somewhat off subject - my apologies.

LouisB. (Scribe)


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## JoeQ

My understanding is that you can take 25% of your pension pot as a tax free lump sum any time after the age of 55.

http://www.hmrc.gov.uk/pensionschemes/take-pension.htm


The maximum tax-free lump sum you can normally have is whichever is the lower of the following amounts:
• 25% of the total value of the pension pot(s) from the same pension scheme that you're putting into payment. For example if you have money under two pension pots in the same scheme, say final salary pension and additional voluntary contributions, and take both pension pots at the same time, the 25% limit applies to the total of both pension pots. You could use one pension pot to pay the lump sum and the other to pay the pension if you wanted to
• 25% of your remaining unused lifetime allowance (based around the normal £1.5 million lifetime allowance unless you have fixed protection in which case use £1.8 million)

You may be able to take a bigger tax-free lump sum if before 6 April 2006 you had the right to take:
• A tax free lump sum of more than £375,000 and you have either primary protection or enhanced protection.
• More than 25% of your pension savings in that scheme as a tax free lump sum. This is known as 'scheme specific lump sum protection'. Your scheme administrator will be able to tell you if you can take a bigger tax free lump sum under this rule and the maximum lump sum you can have.


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## vasco

The lump sum is a bonus but rember, if you have life shortening illnesses such as diabetes tell them. Your monthly pension is calculeted on your expected life span. Fit gets less than unhealthy.
Every where I shopped around to see what I could get instead of the MNOPF I told. None of them matched our scheme so I accepted the MNOPF offer. Felt dead chuffed, bit of a pension and a windfall, that is until I realise I had not told the MNOPF about my illnesses!! To late then, but still the best offer. My pension is not big so i guess I only missed out on a small amount but still.


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## gdynia

I took a lump sum last year plus a monthly pension pay out the lump sum was paid tax free but monthly payments i pay taxon


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## Varley

I think the fund would have done better by advertising both voluntary contributions and the change in UK tax which allows me to receive it free of UK tax (NOT free of IoM tax of course). I might well have continued/recommenced contributions as a 'consultant' which necessitated suspension from the excellent Denholm scheme. I don't know when the rules changed from memory Father's BP pension was always UK Tax deducted.


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## peterh76-86

Called MNPA and they are sending out a forecast of what lump sum I could expect to receive.


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## derekhore

You can 'crystallise' your pension and take a tax-free lump sum of up to 25% of the total pot, with the rest being used for your annual pension pay-out.


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## marinero

vasco said:


> The lump sum is a bonus but rember, if you have life shortening illnesses such as diabetes tell them. Your monthly pension is calculeted on your expected life span. Fit gets less than unhealthy.
> Every where I shopped around to see what I could get instead of the MNOPF I told. None of them matched our scheme so I accepted the MNOPF offer. Felt dead chuffed, bit of a pension and a windfall, that is until I realise I had not told the MNOPF about my illnesses!! To late then, but still the best offer. My pension is not big so i guess I only missed out on a small amount but still.


Hi Vasco.
I went into the Furness Scheme which later became the Kenwake Scheme. I took early retirement from MNOPF,MNRPF & Kenwake and when I reached 65 my Kenwake payment doubled.
Did you not join the Furness/Kenwake one?

P.S. I also took a retirement lump sum from all my MN Pension Funds.

Regards
Leo


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## vasco

marinero said:


> Hi Vasco.
> I went into the Furness Scheme which later became the Kenwake Scheme. I took early retirement from MNOPF,MNRPF & Kenwake and when I reached 65 my Kenwake payment doubled.
> Did you not join the Furness/Kenwake one?
> 
> P.S. I also took a retirement lump sum from all my MN Pension Funds.
> 
> Regards
> Leo


Hi Leo,

My Furness Pension was £48 per YEAR., I was one of the first kicked out in 1981, so only paid a small amount. Elsewhere on this site I have mentioned this, as I managed to invoke a little known clause and got a grand cash and no more kenwake pension. Honestly, £4 a month in my bank account was getting lost!!
I was lucky to pay MNOPF off and on afterwards, so I get a modest 8k a year from the MNOPF. The lump sum has made all the difference though, giving me a bit of a cushion and more freedom to do things. I am still working and actively seeking ways not to.


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