LGPS - put additional funds in AVC, AVP or SIPP?

Lummoxley wrote: »

Well I had another go and sent this.

"Hi **, thanks for your response, however I've done some further research and had feedback on other members experience and believe your advice is incorrect. Can I request that you seek clarification.

For example https://www.lgpsmember.org/more/AVCoptions.php clearly indicates that I can access 100% of the AVC as long as it does not exceed 25% of my entire "pot".

This is also stated in the full scheme guide on page 26. This version of the guide is from April this year, I've been told that the change was discussed in 2014 but not implemented. I accessed this at http://lgpsregs.org/resources/guidesetc.php"

I got this reply.

"Dear Mr **,

Further to your recent email, I can confirm that the information provided by my colleague is correct, you can only use 25% of the fund value from any AVC contracts commencing after 1st April 2014 as tax free lump sum.

Please see the following link for more information regarding this.

https://www.pensionsadvisoryservice.org.uk/about-pensions/pension-reform/freedom-and-choice

Regards

**
Senior Pensions Administrator"

:huh:

I hope they are wrong at your end and not mine!

It does seem totally confused within the world of LGPS Admin for some reason.

I've had a look at the link they provided and can't see anything that relates to AVC's linked to a DB scheme, just the "standard" rules about 25% of a DC pot being tax free.

The lgps regs website you linked to is part of the Local Government Association (LGA). Why not contact them, quoting the various guides, the email from your pension administrators and my "we made an error" email requesting clarification.

You could also go back to your team and ask them to explain why they are not following the overall LGPS regulations and why & when they made a local policy decision to implement a local approach.

One of the experienced LGPS admin's on here may be able to advise on whether the LGPS regulations have to be followed or whether there is scope for local discretion.

Are you a Unison member? If you are they have pensions expertise and can take up the case for you if they believe you are correct? Might even be worth joining just so they can support you.

AlanP wrote: »

Had a further thought on this - Have you looked at the Scheme Guide on your council area's LGPS website?

Each area appears to re-brand the national guide, and I was being told "No" by my LGPS team until I queried why not just the national guide, but their own one indicated they were wrong.

My local admin had to look up the national regs as their scheme guide was not up to date 😗

atush wrote: »

I think, but am not sure this benefit was taken away in apr 2014. So the AVC plan needs to have existed before then.

I believe that was the plan but it was never followed through. The lgps 2014 website says you can take all avc as cash as long as its not mrevthan 25% of total pot.

atush wrote: »

GTK, I thought it was now in force.

Not according to the 2016 & 2017 versions of the LGPS scheme guide as per my links earlier in this thread.

My admin team said "no, only pre-2014 AVC schemes" until I pointed out the relevant paragraphs in national guide and the local version they issue to members at which point they changed to "yes, sorry we misinformed you".

Very confusing though, some areas seem to think it has changed, others that it hasn't and some, like mine, who change their mind when they see it in black & white.

Anyone would think pension rules weren't important :rotfl: