Potentially moving from LGPS to CS pension - need some advice, please.

hazel_davey

michaels said:

Lgps has advantages with tfls and avcs that CS alpha pension doesn't.

tfls? I have to admit I'm not overly familiar with AVCs etc. What are the advantages?

Silvertabby

hazel_davey said:

michaels said:

Lgps has advantages with tfls and avcs that CS alpha pension doesn't.

tfls? I have to admit I'm not overly familiar with AVCs etc. What are the advantages?

LGPS AVCs are tax relief in, tax free (within HMRC limits) out.  CS AVCs, if taken as cash, are limited to 25% tax free.

Andy_L

hazel_davey said:

michaels said:

Lgps has advantages with tfls and avcs that CS alpha pension doesn't.

tfls? I have to admit I'm not overly familiar with AVCs etc. What are the advantages?

TFLS - tax free lump sum,
AVC - Additional voluntary contributions, a money purchase pension that runs along side the company pension

With the LGPS you can take all of the tax free lump sum from the AVC rather than having to give up pension at the appalling rate of £12 lump sum for £1 of annual pension