LGPS AVC maximum contribution from monthly salary

HampshireGirl

Good evening everyone, I'm a first time poster so please be gentle. I'm in the fortunate position to have some significant carry over in my annual allowance part of which has to be used within this financial year. 
My question relates to the following statement within the Prudential AVC information documents:
"How much can I pay in? You can pay up to 100% of your pensionable pay (subject to other deductions made by your employer) into an AVC".
From my latest Local Government pay slip my salary is £6,422.42 / month
Tax £235.80
Union dues £22.50
NI £450.11
AVC £2,600
LGPS at 9.9% £635.82
Could I in order to maximise my last 2 months AVC contributions this financial year pay say £5,000 from my salary leaving the remaining £1,422 to cover my tax, union, Ni and LGPS contributions?
Thank you for your help.

Retire2021

Your tax seems remarkably low - wish I paid that little

Other people will know better, but your pension contribution is calculated using the increase in your pension over the year multiplied by 16? plus however much you put into your AVC - or something like that. 

OldBeanz

You'll be lucky. Ive tried to change the wife's since September and looking at her next salary they haven't managed to change it. To confuse matters further the old amount is shown coming off her pay but it is not being received by the Pru, She now cannot pay enough in during February and March to reach her target. She will be in discussion with them tomorrow.
You need to call the Pru tomorrow and they will let you know when the cut off dates are to change your contribution. You should be able to pay in 100% less deductions as long as you are not using Salary Sacrifice.

AlanP_2

Not sure why you need to contact the Pru. For my LGPS AVCs I contact the Pension Admin team with the revised amount and date I want it to start on. They inform payroll, money is deducted and passed to AVC provider (Standard Life for us).

Payroll has a cut off so there is a point in each month that you need to be beat.

OP - I suspect you could pay a bit more in if you wanted to as your income tax will be lowere due to higher pension contributions, a bit of Excel / Calculator time to work out if you want to push it to the limit.

Agree with Retire2021, the tax paid does look low even with that level of pension contributions.

Dazed_and_C0nfused

Tax can be notoriously difficult to follow on single payslips.

It may be that there has been an adjustment to effectively refund some higher rate tax paid earlier in the year which makes that months tax look low.

bioboybill

Good luck with getting anywhere with the Pru lately. Their customer service has been appalling for quite some time. My AVCs with them have been missing my £600 a month payments for the last few months and they make promises to put it right urgently then do naff all. They just keep blaming web migration issues. Look on Trustpilot and you will find almost every review saying how useless they are. Some people have waited 6 months or more to access their pots, and even terminally ill people are being fobbed off. I know COVID means a lot of their staff are working from home, but it’s still disgusting the way they are treating customers. I don’t know how the FCA are allowing them to operate like this.

OldBeanz

bioboybill said:

Good luck with getting anywhere with the Pru lately. Their customer service has been appalling for quite some time. My AVCs with them have been missing my £600 a month payments for the last few months and they make promises to put it right urgently then do naff all. They just keep blaming web migration issues. Look on Trustpilot and you will find almost every review saying how useless they are. Some people have waited 6 months or more to access their pots, and even terminally ill people are being fobbed off. I know COVID means a lot of their staff are working from home, but it’s still disgusting the way they are treating customers. I don’t know how the FCA are allowing them to operate like this.

I think it is ridiculous that after nearly a year of Covid that  any system has not "recovered" to normal. Any decent Disaster Recovery plan should have done this. The Pru are not unique in still trying to excuse poor service based on Covid. It's now poor planning.