Transferring Crystallised AVC Funds Query

shinytop

Madeinireland wrote: »

Hi Shinytop - but by doing so your forgo a large tax free lump sum for a smaller one as no longer linked to your DB pension???

I’m trying to effectively move to drawdown without having to do that

I suppose so yes. But is wasn't that attractive because in order to take the max TFLS from my AVC I also had to take a large TFLS from my DB. I didn't really want to do that as I also have a decent DC pension that will give me all the TFLS I need. I can see what you want to do though. My provider wouldn't do it; I don't know whether others can or would. It might be that the AVC product I had just couldn't transfer crystallised funds.

Balderdosh

Peter_LA said:

Hi Balderdosh. Interested to learn of your pension predicament. I find myself in a similar situation. Did you manage to find a solution ? or were you forced down the Annuity route ?Out of interest is the scheme administrator Willis Towers ? Thanks

With apologies to Peter_LA and Madeinireland, I hadn't realised there was outstanding interest in my AVC predicament.

After a great deal of messing about I eventually managed to sort out the situation. 

Essentially, the DB pension administrator admitted that they had issued the wrong documentation to me and their advice issued via my IFA was incorrect.

Reference my previous post, I took option c) Take a full scheme pension with a TFLS funded by the AVCs.

I was able to take the max 25% TFLS without any reduction to the DB pension amount.

This left residual AVC funds of approx £50k designated as crystallised, which I was eventually able to transfer to another provider offering Drawdown.

So I was able to achieve my aim of maximising my DB scheme pension and avoid an annuity for the residual AVCs.

I don't have a problem with the transferred funds being designated as crystallised since the tax-free benefit of the AVCs have been fully utilised.

I chose Interactive Investor's SIPP for the residual funds, the transfer of which went smoothly and did not require to be executed via an IFA.

The DB scheme administrator at fault wasn't Willis Towers. It was Capita. I let my original IFA go too.

Peter_LA

Balderdosh said:

Peter_LA said:

Hi Balderdosh. Interested to learn of your pension predicament. I find myself in a similar situation. Did you manage to find a solution ? or were you forced down the Annuity route ?Out of interest is the scheme administrator Willis Towers ? Thanks

With apologies to Peter_LA and Madeinireland, I hadn't realised there was outstanding interest in my AVC predicament.

After a great deal of messing about I eventually managed to sort out the situation. 

Essentially, the DB pension administrator admitted that they had issued the wrong documentation to me and their advice issued via my IFA was incorrect.

Reference my previous post, I took option c) Take a full scheme pension with a TFLS funded by the AVCs.

I was able to take the max 25% TFLS without any reduction to the DB pension amount.

This left residual AVC funds of approx £50k designated as crystallised, which I was eventually able to transfer to another provider offering Drawdown.

So I was able to achieve my aim of maximising my DB scheme pension and avoid an annuity for the residual AVCs.

I don't have a problem with the transferred funds being designated as crystallised since the tax-free benefit of the AVCs have been fully utilised.

I chose Interactive Investor's SIPP for the residual funds, the transfer of which went smoothly and did not require to be executed via an IFA.

The DB scheme administrator at fault wasn't Willis Towers. It was Capita. I let my original IFA go too.

Thanks B.  Hope you are enjoying retirement.   Arranging the pension was a long time ago now.  I wasn’t particularly happy with the options at the time.  But the way things have worked out it couldn’t be better.  Part final salary (in drawdown) with AVCs into a SIPP.   Thankfully no annuity.

Balderdosh

Peter_LA said:

Thanks B.  Hope you are enjoying retirement.   Arranging the pension was a long time ago now.  I wasn’t particularly happy with the options at the time.  But the way things have worked out it couldn’t be better.  Part final salary (in drawdown) with AVCs into a SIPP.   Thankfully no annuity.

Hi Peter_LA. Retirement great so far, thank you.
Glad you were able to sort out your pension arrangements to your satisfaction too.
Best regards, Balderdosh.

TVAS

Why don't you write to the administrator as your IFA is of no help and ask why can't they sent the crystallised funds to a new provider and tell them the date the fund because crystallised the percentage of LTA used and the TFC taken and that the plan was linked to the main DB scheme.

The reason why it is 'rare' is because most member do not have sufficient AVC funds where the TFC can entirely be taken from that source so the main scheme provides the full pension only. 

Make a complaint if you get no joy. It makes no difference to them who they send the proceeds to an annuity provider or a drawdown provider.

TVAS

If they come back and say the scheme rules do not allow what you want. You want them to draw your attention to that part of the scheme rules, i.e. they need to quote the page and section in the pension trust deed. If it is not allowed in the scheme rules it cannot be done.