Avc & 1987

Hugeass304

I have recently been in contact with my company pension, I joined their AVC scheme in November 1986 and should therefore have the benefits pre 1987. They are now informing me that all legislation about the 1987 date has been suprceded by the recent "A Day" pension legislation. Is anybody able to confirm that this is correct and that recent legislation does infact supercede the previous legislation. As I understand it any money entered in an AVC prior to 1987 could be withdrawn in total as cash. I am now being told that this has now been replaced with 25% of the total pension pot being able to be withdrawn as cash. Does it depend on different company schemes or are they all bound by the same laws and regulations. Any info on this would be most welcome

EdInvestor

This is a separate issue but may be worth checking:

Some company schemes allow you to amalgamate the amount of the main pension and the AVC and then draw the 25% cash applicable to the total just from the AVC, so the whole of the scheme pension is allotted to income.This is a good deal if you can get it.

Hugeass304

Thanks Ed

I think this option is what I'm being offered, 25% in cash from my whole pension pot. They are telling me that the A Day legislation supercedes everything that went before so the benefit of having an AVC that was started before 1987 is now lost. It may make no difference to me and I think I'll be able to withdraw my full AVC as cash under the 25% rule anyway.

dunstonh

They are telling me that the A Day legislation supercedes everything that went before

It does unless you applied for protection beforehand or the scheme has not yet moved to post A day rules (they had 10 years to comply).

Hugeass304

Thanks Dunstonh

I'm pretty sure where I stand now. I can't get my pension now until I'm 55, also a result of A Day but I'm sue I'll get all my AVC out as cash under the 25% rule