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LGPS AVCs - exit charge as from 12th August
jem16
Posts: 19,845 Forumite
I've seen a few people asking about putting in a lump sum in the last year or two into an AVC through the LGPS so this is just a heads up to get your skates on if you are going to do this.
As from 12th August the Pru plan to levy an exit charge for those taking out AVCs and taking the benefits within 5 years. There will be a sliding scale with the 1st year seeing a 15% exit charge. If you get your application in before 12th August the exit charge won't apply.
Obviously they have got wise to the increased number of people putting money into their AVCs shortly before retirement as the LGPS allows the tax-free lump sum to come from the AVC pot instead of the main scheme.
As from 12th August the Pru plan to levy an exit charge for those taking out AVCs and taking the benefits within 5 years. There will be a sliding scale with the 1st year seeing a 15% exit charge. If you get your application in before 12th August the exit charge won't apply.
Obviously they have got wise to the increased number of people putting money into their AVCs shortly before retirement as the LGPS allows the tax-free lump sum to come from the AVC pot instead of the main scheme.
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