Problem with LGPS AVCs with Prudential

EP456

Nebulous2 said:

Silvertabby said:

Nebulous2 said:

Nebulous2 said:

Silvertabby said:

Nebulous2 said:

stephenadarglas said:

@Nebulous2 you have to speak to your own LA to see how it works.  One of the options is to use your AVCs to buy extra pension in the LGPS.  Please seek advice.

Cheers - I intend taking it as cash. I signed up for an AVC at Christmas, with no intention of retiring yet, expecting my first payment would come out at the end of January. I don’t have a lump sum for my pension at all, so the intention was to get some tax-free cash. My deductions didn’t start until February. I then made the decision to leave end of March. 

I’ve been told I will be sent my options after our March payroll run is notified to the pension fund. We also have an outstanding pay claim for 20/21. 

I can afford a delay in payment, but as I have retired early I have an actuarial reduction. It would be affordable for me to take the waiting time for this mess (partly of my own making) to resolve,  as a deferral period instead of as a delayed payment, but I’m not clear if that will be offered. 

One of your pension options will be 'deferral of payment until a later date'.  Just go for that, then request revised options once everything has been sorted.

To update this for anyone interested. I handed in my notice late Jan, to leave end of March and it took two months post retirement to get figures from the LGPS, about four months after they knew I was going. 

I accepted the figures, said I wanted maximum pension and the AVC as cash. They then said figures had to be checked by someone else at pension scheme. 

I've just heard I'm getting 3 months pension at the end of June. They have separated out the AVC and handed any issues with the Pru directly to the Pru to resolve. They told me the Pru will send a cheque to my home. 

Update again - called today to ask about my cheque. The local authority contacted them asking them to disinvest and send me a cheque. Their system is showing a zero balance, so they don't have a cheque to send me. They have written to the local authority asking for details of any contributions made. The local authority have not responded. 

I've given details of my contributions and they will now chase these up. They may be in a suspense account. 

It could be a covid thing, but I've never heard of the Pru sending a cheque for the full 100% tax free cash straight to the pension member before 

The procedure has always been to send the money to the linked  LGPS on disinvestment, so the money can be incorporated into the maximum tax free cash calculation.  

Is it possible that the Pru have indeed sent the disinvested money to your LGPS as per normal procedures?

I don't think so. It looks to me as though the payments have never made it into my account, in line with the experience of others in this thread. Although it took 3 months for my pension to be put into payment, I'm quite pleased they agreed to pay my pension and asked the Pru to pay me direct or it could have taken much longer.

I didn't take a lump sum from the LGPS at all, and my AVC is only worth about £3k, so I certainly wasn't taxing the limits of what was permissible. 

I retired 31 May and received a letter from my LGPS stating pension will be paid on 15th of each month once they have completed all the calculations, so I am hoping it will be from 15 July.

They also stated “We will advise Prudential of your election to take your entire AVC fund as cash and they will send you payment directly in due course.”

Fingers crossed….

stephenadarglas

My wife retired on April 30th 2021.  Today she received two months back pension and her tax free lump sum from the LGPS.  She also today received her tax free AVC payment from the Prudential.  These monies came into our account via one lump sum  paid in by bank credit from Rhondda Cynon Taff council, which was her former employer. 

bioboybill

My May and June contributions both turned up together this afternoon.

OldBeanz

The wife's contributions for December through to the end of the tax year have now disappeared which had been there when I checked less than a month ago. They are regressing.

stephenadarglas

I'm so glad we are out of this mess.  It really is not good enough.

OldBeanz

All payments are now showing after the weekend's update.

Thrugelmir

bioboybill said:

My May and June contributions both turned up together this afternoon.

Perhaps they were paid over to the PRU at the same time by your employer. Considering when you were paid in June and the little time that has elapsed in between (your post only being the 9th), . 

bonnyrigger

Quick update on my own Pru LGPS AVC situation. Haven't been able to see my account since last September - I can't complete the new  registration process as it doesn't recognise my details, complaint made, compo paid but still with FOS.
I wanted to increase my contributions in 3 months when our mortgage ends but TBH I've lost all faith in Prudential's IT - the other option when I took out the AVC was Standard Life, could I reasonably ask that Pru manually prepare an up to date transfer quote and I then move the lot to SL?
I've had previous experience with financial company IT disasters being a TSB customer - but Pru are taking it to a new level of uselessness.

AlanP_2

bonnyrigger said:

Quick update on my own Pru LGPS AVC situation. Haven't been able to see my account since last September - I can't complete the new  registartion process as it doesn't recognise my details, compliant made, compo paid but still with FOS.
I wanted to increase my contributions in 3 months when our mortgage ends but TBH I've lost all faith in Prudential's IT - the other option when I took out the AVC was Standard Life, could I reasonably ask that Pru manually prepare an up to date transfer quote and I then move the lot to SL?
I've had previous experience with financial company IT disasters being a TSB customer - but Pru are taking it to a new level of uselessness.

I don't know how your LA handles this sort of thing but when I moved mine from Clerical Medical it was all handled through the local LGPS admin team.

I asked them to change my ongoing contributions across to SL (they had a SL form), and asked them to arrange the transfer from CM (which took a few months).

Remember these are not the same as DC / SIPP schemes, the "employer" has the arrangement with SL / Pru etc.

daveyjp

I am aware that at least one LGPS Director is in direct contact with the CE of Pru demanding the problems with website, funds deposit, delays with AVC payments etc is sorted out as a priority.

There will be consequences for Pru if it isn't.