Can I use AVC WISE or Do I have to use Prudential with regards to my AVC?

Venomspread3r

Stupid Question Alert?!?
Hello everyone I'm currently in the process of looking at sorting an AVC payment with my LGPS ..on my employers website it says it offers 'Shared cost Salary Sacrifice'

www.telford.gov.uk/info/21840/working_here/6636/employee_benefits

I'm just reading stories on here regarding people's horror stories of dealing with Prudential I'm presuming a company like AVCWISE Is a middle man but they cut out the hassle ?

But is their service only available if your work place uses them ? 

Apologies for the stupid question I just want a set and forget approach (which I know an AVC is due to it just coming out of your pay ) but I don't want to be on the phone to Prudential every other second.

Many thanks.

OldBeanz

You can only use the Pru.
Assuming you are not changing the amounts (go for a % as that grows the amount with inflation) and that you give them plenty of warning when retiring then you will give them little opportunity to screw up. They are good at paying compensation if they err as it is cheaper than training and paying staff properly.

Venomspread3r

Hey @OldBeanz thanks for the reply it's appreciated I guess that picks for me haha!! 

Interesting that you say go for a % that grows the amount with inflation - what sort of % would you be looking at personally if it was you ? 

Kernowshep

From memory with AVC Wise/My Money Matters you effectively have an online account with them (if they are who your LA use), the portal allows you to request changes to the contribution amount, your HR/payroll dept agree to those changes, then the money gets sent to prudential monthly. You'd also have a login with Pru (or M&G) to see how it's performing/make investment choices etc., it often takes quite a few weeks to be shown in there after the payment has been made.

Venomspread3r

Thankyou @Kernowshep it appears I have to go straight through Pru as @OldBeanz mentioned above but I'd prefer to have an avcwise/my money matters but it is what it is.

I've just downloaded & printed the documents for my Shropshire county pension fund so Ill have a good read later to choose my fund. 

Anybody else here in the Shropshire county fund? How are you finding it ? 

As always thanks for your help guys.

Bue21

I have AVCs with Prudential. Current employer does use AVC Wise (now called My Money Matters). AVC Wise is purely a middle man so the money still sits with Prudential. You cannot see anything on the AVC Wise website except how much you currently contribute. To see the funds available etc you have to look at your account on prudential.  I had many problems when they initially started but once the issues were ironed out they have been fine. Retired colleagues have also reassured me that they were prompt to pay out when the time came.
The main problem I encountered is with their system. Apparently the LA pays the full amount of the employees AVC in a lump sum together with a spreadsheet of who has paid what. If there is any discrepancy at all none of the contributions are credited until the issue is sorted (it is all backdated to the original date of receipt). My council was issuing some incorrect information and it appears Prudential weren’t advising them of the issue until I started complaining a few months later!

Venomspread3r

What happened when you rightly complained? @Bue21
I'll have a long look at the funds Tommorow but thinking I'll go higher risk - I've 15 years to go.

flipper_72

I set up an AVC with prudential around 2 years ago. I changed from a set amount to a percentage a year ago and I informed the pru and HCC to ensure they didn’t mess it up. I have had one month where my payment didn’t show up for a while (but was backdated) otherwise no problems whatsoever.

Venomspread3r

Thanks @flipper_72 that certainly helps put my mind at ease.
I'll look at getting this sorted this week - you've given me some food for thought there though regarding a set amount or a % .

flipper_72

I like a percentage as it comes off the backdated pay award when it arrives around 8 months into the financial year.

OldBeanz

Venomspread3r said:

Hey @OldBeanz thanks for the reply it's appreciated I guess that picks for me haha!! 

Interesting that you say go for a % that grows the amount with inflation - what sort of % would you be looking at personally if it was you ? 

Been away; the wife was paying 100% in eventually as she had another small DB pension in place then took 3 small pots from HL which took her to her annual tax allowance. Put what you can afford as a % then review every couple of years or after any promotion or change of circumstances