LGPS AVC's

Durban

Can anyone tell me why the maximum amount that you can put into a LGPS Prudential AVC is half your salary if taken out before 2014 and 100% of your salary if taken out after this.

I know the LGPS went onto a CARE system then and I'm guessing that it is all to do with the LGPS 2014 changes but don't know why.

I started my LGPS AVC in 2013 and believe that I can only in up to 50% of my salary into my pension but anyone who took one out after 2014 can put up to 100% of their salary in.  

I am now at the maximum that I could put in and wish I could put in more because of the very valuable lump sum advantage the LGPS AVC gives.

AlanP_2

I'm not sure why it changed but there was a period after the 2014 changes came in when the AVC option was taken away entirely. This chaged after a few months and the current iteration, with the 100% limit, was offered.

jamjar92

Not sure if this different per lgps employer, but we are able to put any amount in, as long as we receive the mininum working wage in take home pay, and we make NI payments so not to affect state pension.

blue_eyes

Is it worth checking again? My take on it would be:
Since you're still an active member, and unless you are a councillor (different rules apply), then SI 2018/493 s29 amended the regs in 2018 to align pre-2014 and post-2014 AVCs such that 100% of pensionable pay applies. 
e.g. from the commentary off the link below
"This means that, in respect of pre 2014 AVC contracts, from 14 May 2018 the following changes are applicable: Contributions The maximum contribution limit will increase from 50% of pensionable pay (based on the 2008 scheme definition) up to 100% of pensionable pay (based on the 2014 scheme definition). "
See ~p38/39 
https://www.lgpslibrary.org/assets/bulletins/2018/171.pdf

jamjar92

AlanP_2 said:

I'm not sure why it changed but there was a period after the 2014 changes came in when the AVC option was taken away entirely. This chaged after a few months and the current iteration, with the 100% limit, was offered.

AlanP_2@AlanP_2

I paid AVC pre 2014 and post 2014 each month, all went into the PRU AVC account no problem.

Durban

blue_eyes said:

Is it worth checking again? My take on it would be:
Since you're still an active member, and unless you are a councillor (different rules apply), then SI 2018/493 s29 amended the regs in 2018 to align pre-2014 and post-2014 AVCs such that 100% of pensionable pay applies. 
e.g. from the commentary off the link below
"This means that, in respect of pre 2014 AVC contracts, from 14 May 2018 the following changes are applicable: Contributions The maximum contribution limit will increase from 50% of pensionable pay (based on the 2008 scheme definition) up to 100% of pensionable pay (based on the 2014 scheme definition). "
See ~p38/39 
https://www.lgpslibrary.org/assets/bulletins/2018/171.pdf

blue_eyes said:

Is it worth checking again? My take on it would be:
Since you're still an active member, and unless you are a councillor (different rules apply), then SI 2018/493 s29 amended the regs in 2018 to align pre-2014 and post-2014 AVCs such that 100% of pensionable pay applies. 
e.g. from the commentary off the link below
"This means that, in respect of pre 2014 AVC contracts, from 14 May 2018 the following changes are applicable: Contributions The maximum contribution limit will increase from 50% of pensionable pay (based on the 2008 scheme definition) up to 100% of pensionable pay (based on the 2014 scheme definition). "
See ~p38/39 
https://www.lgpslibrary.org/assets/bulletins/2018/171.pdf

Thank you  - that is very helpful.  I will check again

AlanP_2

jamjar92 said:

AlanP_2 said:

I'm not sure why it changed but there was a period after the 2014 changes came in when the AVC option was taken away entirely. This chaged after a few months and the current iteration, with the 100% limit, was offered.

AlanP_2@AlanP_2

I paid AVC pre 2014 and post 2014 each month, all went into the PRU AVC account no problem.

Sorry, Is hould have made it clearer - new AVC contracts could not be started for a period of 12 months or so when the 2014 changes came in with a subsequent rule change to allow them again.