Defined Benefit Commutation Factors 2022/23 CII R04, AF7, J05

Описание: There are two ways in which a member of a Defined Benefit (DB) scheme can receive a Pension Commencement Lump Sum (PCLS) at normal pension age, but in this video, we look at a member giving up some of their pension for a PCLS (known as commutation). Using the commutation factor, we can calculate the maximum amount of PCLS that can be taken, and how that would subsequently impact the pension they will receive (and by how much). Watch this 2-minute bitesize video to see how the calculation works in practice.
If you are studying towards CII financial services exam RO4, you'll need to understand this concept. If you are taking CII exams AF7 or JO5, this will be useful revision.
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