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Civil Service Pension & Interaction With AVCs?
johnllew
Posts: 1,928 Forumite
In house AVCs are linked tentatively to occupational schemes. Under current rules, they are treated as occupational pensions because of the way they can be used "potentially" to alter occupational pension benefits.
This comment from another thread intrigued me. I have a preserved Civil Service pension (which will become payable at 60) as well as £30k in each of two CSAVC funds, one with Scottish Widows and one with Standard Life. What can I do with those AVCs to alter pension benefits? Is it possible to use them in conjunction with the PCSPS to enhance any tax-free lump sum?
0
Comments
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Nothing :-(
Some final salary schemes allow AVCs to be used to fund the lump sum rather than commuting pension, this is generaly a better financial deal than commuting the pension (ie giving up annual pension for a lump sum, in public schemes generally a rate of £1 pension buys £12 of lump sum)
The PCSPS does not allow this.0
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