Fsavc

Bilscho_2

I am a member of a final salary pension scheme plus I have taken a FSAVC. I will be retiring from the main scheme and taking FSAVC benefits at the same time. Is the maximum tax free cash that I can take from the FSAVC limited to 25% of the FSAVC or can I take into account the value of the main scheme.

Thanks

dunstonh

Is the maximum tax free cash that I can take from the FSAVC limited to 25% of the FSAVC or can I take into account the value of the main scheme.

FSAVCs ceased to exist in 2006 and became classified as personal pensions. There is no link between the FSAVC you have and the occupational scheme.

Whilst technically, the rules do allow for the occupational pension scheme and FSAVC to be consolidated in the calculations for benefits, they are very highly unlikely to do it as it increases the liabilities for the occ scheme. Plus, the FSAVC provider would have to allow it and given how rare and unlikely it is, they almost certainly wont have the systems in place to allow it.

Therefore you would expect 25% on the FSAVC and an income via annuity or drawdown and the occ scheme to be handled independently.