Teachers' AVC Funds and A Day

EdInvestor

The 15k cash limit only applies when the total of ALL pensions (except the state pensions) is less than 15k, so I guess your Mum won't be able to take adavantage as here main teacher's pension will bust the limit.

She will hopefully be able to take the 25% in cash though once they get the red tape sorted out.., and as soon as that's done there should be no delay as she has already retired.

KMK

I am in a similar situation to your mother and I rang the Pru for guidance. I was told that they would send out the documentation within 4 weeks so that I could access 25% of my fund. The delay is because they were waiting for A day. So we shall see!

dunstonh

Pru sold both AVC and FSAVCs to teachers IIRC. If its AVC, then the link with the occ scheme retirement age is still there. If FSAVC, the link is there unless the trustees overide it or she ceases to be a member of the occ scheme.

I have read nothing to suggest that the AVC/FSAVC linking rules dont exist any more.

KMK

Just had confirmation today from the Pru that I am able to take 25% of my AVC and the rest as an annuity. I retired last summer. So your mother should be able to do the same.

dunstonh

KMK, was yours the Pru AVC or the Pru FSAVC?

KMK

It was the Pru AVC. Believe it or not, at the time, I did consider taking out an Equitable Life FAVC because I thought I might get a better return with the E. Life. Thank goodness I went with the Pru which handled the AVCs for teachers via the pay roll and the admin charge seemed low. I still wonder whether "added years" might have been a better option but that is academic now. I am just grateful that I can take 25% cash under the new rules.

KMK

Can confirm that today I received options from The Pru ,one of which was to take 25% as lump sum from my AVC fund and the rest as an annuity.

dunstonh

Thanks for confirming. (where is the thanks button!)