Avc's

geelamch

I work for a railway company and always assumed that as I was in a final salary scheme 2/3 40 years that my avc ie brass would be paid in my lump sum,I have 7 1/2 years till I have 40 years in scheme, have I been wrong in this assumption as I have been reading about 25% of pot etc ,but as it is final salary there is no pot in effect.as I am considering taking avc to the max for the remaining years.any info would be appreciated

jem16

geelamch wrote: »

have I been wrong in this assumption as I have been reading about 25% of pot etc

You will need to check with your scheme as rules vary between schemes.

Final salary schemes, as you say, don't have a pot. Some have an automtaic lump sum of 3 times your annual pension. Some you have to commute part of the pension to get the lump sum.

With AVCs, some allow you to take that lump sum from the AVC pot instead of having to commute from the main scheme. Some do not allow this and you will have a lump sum from the pension and a 25% tax-free lump sum from the AVC pot.

There is no definitive answer - it's down to each scheme so you will need to check with them.

geelamch

Ok thanks jem