LGPS AVC 25% TFLS calculation

seans_elysees

Hi, 


A couple of questions if anyone can help: 

1) 

I’m wondering if there’s a set calculation/multiplier for the overall value of the LGPS DB pot? Or does it value from scheme to scheme? 

2) 

Secondly, I (42m) am heavily contributing to AVC’s at the moment but plan to scale back in a few years. If all goes to plan, my AVC pot - if I can leave it until 68 when taking LGPS - would potentially be well in excess of 25% of my overall plan (LGPS + AVC) combined value. 

I understand there’s the option to buy additional pension/annuity at that stage and I have the current calculation guidance for that.  

What I’m trying to get my head around is how I would determine how much I could take as the TFLS. Further complicated possibly by the fact I would have been drawing other DC private pensions between 55-68. I assume those would have been attracting 25% tax free draw downs, thereby consuming part of my my LSA and have pretty much had that confirmed previously on here. 

Would it basically mean that the tax free value of those DC draw downs from 55-68 would be deducted from my LSA of £268k when calculating what value I could take tax free from the AVC pot? (And then convert the remainder to additional pension annuity) 



Thanks in advance for any guidance. I am ultimately trying to work out when to dial back my AVC contributions, as I am heavily front-loading these just now. 

DRS1

Can you explain question 1?

I am sure you will have seen mention on here that there is no such thing as a DB Pot.

daveyjp

There is no pot with a DB.  To calculate the maximum tax free lump sum including AVC there is a formula which capitalises the DB annual income.

There are calculators here:

https://www.lgpsmember.org/help-and-support/tools-and-calculators/maximum-avc-lump-sum-calculator/