Excess AVC contribution query

deejaybee

Hi all 
Have a deferred company pension due November 2025. 
Benefits statement shows me the monthly income from deferred final salary pension.  Plus there is a max cash sum of just over 22K -:which comes from AVC fund.

BUT I also have excess AVC of 790.57 
" This will need to be used to secure an annuity of the open market.  You will need to seek independent financial advice to secure this "

Had my Pension wise appointment today, and he was doubtful I would get an annuity for that small amount,  so what happens to that money then ? 
I am trying to find out from trustee ( now Aptia,  used to be Mercer) but always seem to get the person who makes the coffee......

Obviously the 790.57 is not a set in stone figure,  as the fund will fluctuate up to November, so I don't have a fixed figure I can show an IFA etc.

Guess I'll have to wait a bit and see if Aptia eventually come back with any useful suggestions,..
I know i could take the whole cash sum to open market 22,249.93 plus the 790.57 which would solve the issue, but almost certainly will take the max tax free cash...

QrizB

If the US trade war kicks off, you might not have a surplus any more

Marcon

deejaybee said:

Hi all 
Have a deferred company pension due November 2025. 
Benefits statement shows me the monthly income from deferred final salary pension.  Plus there is a max cash sum of just over 22K -:which comes from AVC fund.

BUT I also have excess AVC of 790.57 
" This will need to be used to secure an annuity of the open market.  You will need to seek independent financial advice to secure this "

Had my Pension wise appointment today, and he was doubtful I would get an annuity for that small amount,  so what happens to that money then ? 
I am trying to find out from trustee ( now Aptia,  used to be Mercer) but always seem to get the person who makes the coffee......

Obviously the 790.57 is not a set in stone figure,  as the fund will fluctuate up to November, so I don't have a fixed figure I can show an IFA etc.

Guess I'll have to wait a bit and see if Aptia eventually come back with any useful suggestions,..
I know i could take the whole cash sum to open market 22,249.93 plus the 790.57 which would solve the issue, but almost certainly will take the max tax free cash...

Aptia aren't going to 'come back with any useful suggestions' - if they've already told you what the rules say,  that's exactly where their remit begins and ends.

However, they aren't the trustee; they simply handle day to day administration of the scheme. There's nothing to stop you contacting the trustees directly, explaining your position and asking if they would consider letting you use the small 'excess' AVC to buy extra scheme pension. There may be a discretion in the rules which would allow them to agree. Make sure you give both the date on which your pension will come into payment (November 2025) and the fact you realise that a small sum of under £800 is only going to add a tiny amount to your scheme pension.