The Hewlett-Packard Limited Retirement Benefits Plan

The HP Ltd Retirement Benefits Plan
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You are here:

  • Digital
  • Active
  • Plan information
  • Retirement options
  • Normal retirement
  • Early retirement
  • Late retirement
  • Ill health retirement
  • Flexible retirement
  • Pension increases
  • Cash lump sum

You are here:

  • Digital
  • Active
  • Plan information
  • Retirement options

Cash lump sum

Exchanging pension for a cash lump sum

When you retire you will have the option to exchange part of your pension for a tax-free cash lump sum - up to a maximum amount set by HMRC. 

This lump sum is known as a “Pension Commencement Lump Sum (PCLS)”. 

The terms for exchanging pension income for a cash lump sum may be reviewed and altered by the Trustee from time to time.

It may be possible for you to exchange further pension for a lump sum but this would be subject to tax.

Cash lump sum

If you have paid AVCs

The Trustee currently allow you to exchange your money purchase AVCs to fund your PCLS before having to exchange any of your defined benefit pension to provide the PCLS.

Although, any cash sum taken will reduce your pension, it will not affect any spouse’s or dependant’s pension payable on your death.

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Expression of Wish Forms and letters – an update

In response to our recent letter titled ‘Who do you want to receive any benefits payable from the Plan?’ we have received several very good questions from members. We thought to share the responses more widely and have done so by writing again to all members. You can also see a copy of this letter by visiting the News section of this website.