Prudential AVC with LGPS

saucer

Silvertabby said:

You don't HAVE to take your AVC at the same time as your main scheme LGPS benefits - but you would lose the options of taking the lot as tax free cash (within HMRC limits) or using it to buy additional index linked LGPS benefits.  

I hate to say it Silvertabby but I don’t think you are right here. On the lgps website it states ‘ If you were a member of the LGPS after 31 March 2014, you must take your AVC at the same time as you fully retire. Different rules apply if you take flexible retirement’. 

Silvertabby

saucer said:

Silvertabby said:

You don't HAVE to take your AVC at the same time as your main scheme LGPS benefits - but you would lose the options of taking the lot as tax free cash (within HMRC limits) or using it to buy additional index linked LGPS benefits.  

I hate to say it Silvertabby but I don’t think you are right here. On the lgps website it states ‘ If you were a member of the LGPS after 31 March 2014, you must take your AVC at the same time as you fully retire. Different rules apply if you take flexible retirement’. 

Yes and no.  It's rare for it to happen, but the AVC fund could be transferred out to another pension scheme if the member thinks that would be beneficial.  So many rules......

Cowster

 

I hate to say it Silvertabby but I don’t think you are right here. On the lgps website it states ‘ If you were a member of the LGPS after 31 March 2014, you must take your AVC at the same time as you fully retire. Different rules apply if you take flexible retirement’. 

The website also says the following under the "transferring your AVC section:

• if you are currently a member, or if you left the LGPS after 31 March 2014, you can only transfer your AVC before your LGPS benefits are paid to you.

https://www.lgpsmember.org/your-pension/paying-in/paying-more/transferring-your-avc/

Silvertabby

Cowster said:

 

I hate to say it Silvertabby but I don’t think you are right here. On the lgps website it states ‘ If you were a member of the LGPS after 31 March 2014, you must take your AVC at the same time as you fully retire. Different rules apply if you take flexible retirement’. 

The website also says the following under the "transferring your AVC section:

• if you are currently a member, or if you left the LGPS after 31 March 2014, you can only transfer your AVC before your LGPS benefits are paid to you.

https://www.lgpsmember.org/your-pension/paying-in/paying-more/transferring-your-avc/

Applies to those who want to access their AVC funds before LGPS retirement, or leave AVC funds to increase to take in later years.  Rare in my time, as most people took the AVC route as a means of maximising their tax free cash.  Or, as I've said in the past, the AVC fund could be used to buy index linked LGPS benefits at very favourable rates.  Again, that was in the past .... open market annuity rates have increased considerably in the last couple of years, and could be an attractive option, especially for those with health conditions which would give an even higher annuity. 

AlanP_2

saucer said:

AlanP_2 said:

You need to consider what you are planning to do over the next 20 to 40 years and not just the date of retirement.

I had LGPS AVCs and, as I was planning on leaving the value invested after retirement in S&S ISAs then there was no benefit to moving to cash to safeguard a notional value.

Coming back to this thread, didn’t that plan mean you missed out on being able to take the max lump sum tax free (as referred to by Silvertabby above)?

Sorry, only just seen this as not been online for a few days.

Yes, the maximum TFLS would have been lower but as I only ever intended to use the AVC as the TFLS and not commute any annual pension that didn't matter.

dunstonh

saucer said:

Silvertabby said:

You don't HAVE to take your AVC at the same time as your main scheme LGPS benefits - but you would lose the options of taking the lot as tax free cash (within HMRC limits) or using it to buy additional index linked LGPS benefits.  

I hate to say it Silvertabby but I don’t think you are right here. On the lgps website it states ‘ If you were a member of the LGPS after 31 March 2014, you must take your AVC at the same time as you fully retire. Different rules apply if you take flexible retirement’. 

I have two clients in LGPS with in-house AVCs (with Pru) who did not take the AVC at the same time as the main scheme and are using them for ad-hoc UFPLS.    They are in the Norfolk Pension fund.