AVCs with a DB scheme

Workerbee999

Hi

Now that more information on the reforms has been announced, can anyone confirm whether it is possible to contribute towards AVCs in a company scheme, and start withdrawing these in cash from aged 55 to fill the gap, before taking the actual DB pension at NRD at aged 63?

Or do the 2 stay linked together so that you have to take them at the same time?


Thanks

deejaybee

I am no expert ( far from it ) think it may depend upon the trustees who administer the scheme.

I enquired about accessing a £10K ish AVC pot, while leaving the final salary stuff in place.

Reply:

Dear Mr X

Further to your recent query in respect of transferring your AVC fund, the scheme actuaries have confirmed that it serves as an underpin to your GMP and pre 1997 amount, it cannot be transferred out separately from your scheme benefits "

I will get it translated sometime haha !

Your_Hero

You would need to enquire through the pension department. The main scheme rules tend to dictate how your AVC benefits may be drawn.

rpc

Depends on scheme rules.

In my scheme, AVCs cannot be taken before main scheme benefits. They may only be taken later than main scheme benefits with the express permission of the trustees.

Our AVCs are also currently only permitted to provide PCLS or purchase an annuity - our rules prohibit transferring them to go into drawdown unless you also transfer the main scheme benefit too. Grumble grumble. Not enough gold plating...

amiaspden

In my scheme, AVCs can be used to fund the PCLS or transferred out to a SIPP at any point (though you can't make any more AVCs after doing this). So, in my case, if I went at 55 (current plan) I could transfer my AVCs to a SIPP and start drawdown.