LGPS AVC is it part of DB pension

hyubh

OldBeanz said:

wjr4 said:

If she takes any taxable income from the SIPP, she is limited to £4,000 pa (gross) into the AVC, and any other DC pensions. 

It is a DB pension that she would want to pay into whether by AVC (Additional Voluntary Contributions) or by APC (Additional Pension Contributions).

You really need to stop thinking of an LGPS AVC as DB ;-) LGPS AVC = DC, and subject to the MPAA; LGPS APC = DB, and not subject to the MPAA.

In another scheme (past or present), the term 'AVC' might be used in a more general sense to mean any sort of additional contract. But in LGPS land, the term 'AVC' only means a linked money purchase additional contract.

OldBeanz

hyubh said:

OldBeanz said:

wjr4 said:

If she takes any taxable income from the SIPP, she is limited to £4,000 pa (gross) into the AVC, and any other DC pensions. 

It is a DB pension that she would want to pay into whether by AVC (Additional Voluntary Contributions) or by APC (Additional Pension Contributions).

You really need to stop thinking of an LGPS AVC as DB ;-) LGPS AVC = DC, and subject to the MPAA; LGPS APC = DB, and not subject to the MPAA.

In another scheme (past or present), the term 'AVC' might be used in a more general sense to mean any sort of additional contract. But in LGPS land, the term 'AVC' only means a linked money purchase additional contract.

Thanks again. Obviously this is entering into an area where I do not want to stray from the straight and narrow, and kinda kicking myself that I could not see this 'opportunity' before while not being able to take advantage of it this FY as we have already topped up.

Dansmam

Can anyone help- this has never been clear to me - does this mean that taking avc funds out in full as a tax free lump sum at the same time as taking LGPS pension will crystallise a DC  and limit future contributions to pension?