PPF cash lump sums

[Steve_2]

Does anyone know if the PPF allows for cash lump sums on retirement, or does this have to be part of the original HPS?

I found http://www.pensionprotectionfund.org.uk/TechnicalGuidance/Pages/CommutationFactors.aspx
But could not understand the regs.

[Steve_2]

I've since looked at the HPS Explanatory Booklet (updated November 2003), and Cash Sums are a part of HPS.
The formula being 3/80 x Final Pensionable Salary x Pensionable Service.

I'm still trying to understand the numbers, but PPF Cash Sums appear to be a factor of more than x10 of the HPS Cash Sum? Need to read the new scheme details to see what is on offer for that. Can anyone else confirm if I have read correctly.

Edit: The cash sum formula for the new scheme is not provided. I'm guessing it's not as good as the PPF offer. Taking A 25% tax free cash sum from PPF looks very attractive, and would allow me to boost my pension in the early years.

[Steve_2]

From the Trust Deed - Establishing the HPS2

Schedule III PPF Underpin
13. Commutation for PCLS
"PPF commutation factors should be used. These would be the factors that would apply for calculation of the member's benefits, as changed from time to time, assuming that the HPS has begun an Assessment Period on the Transfer Date."

So HPS2 is no worse than PPF for cash lump sums, and possibly better than HPS.