LGPS AVC Prudential

Maria2512

I retired from my LA on 30 June 2026.

I had an AVC (Prudential)) and opted to take the amount as a tax free lump sum. As of yet I have not received anything and I am losing out on interest as I had planned to invest the money.

Does anyone know how long the process takes? Who do I contact? Will they compensate me? Should I be worried?

Any help would be greatly appreciated.

Nebulous2

Historically there have been a lot of problems with Prudential AVCs, with a lot of us complaining and getting compensation. I thought they had improved though, as it doesn't seem to happen now.

If you can bear to make your way through hundreds of comments, you may find something of value in this thread.

Problem with LGPS AVCs with Prudential — MoneySavingExpert Forum

Aylesbury_Duck

I would contact Prudential, assuming you've notified the LGPS of your plans for the AVC. I'm not there yet, but my AVC dealings with Prudential in recent years have been beset by delays and poor communication. My wife and I have had several £200 "go-away" compensation sums resulting from complaints. Thankfully it's been much better in the last year but it's possible they're struggling to get round to everything in a timely fashion.

You may have lost out on interest if you'd put it in a savings account of some sort, but depending upon how the AVC is invested you may also have gained from investment growth. If you are planning on investing the sum, then surely you're not losing out - it remains invested until it's released to you.

daveyjp

Is this a salary sacrifice AVC? If so you need to comtact your LGPS provider as they instigate the process following receipt of your instruction prior to retirement.

Maria2512

The AVC has been in a Cash fund for the last couple of years PRU S3. I completed my ‘paperwork’ in May 26 outlining my choices. It’s been 3 months. I did email Pru they said to contact my employer, who then told me to contact Pru!! Meanwhile interest rates for fixed rate bonds are increasing more than the % of the Pru Cash fund.

Marcon

https://forums.moneysavingexpert.com/discussion/comment/82148720#Comment_82148720

What have you done since then to try and move things forward (other than feel you're going round in circles…).

daveyjp

Review your LGPS retirement paperwork. The process should be outlined in there and I'm sure it does state it can take a number of months for the AVC transaction to be finalised as everything needs to be done in strict process.

If your final salary payment included an AVC contribution that can take a few weeks to hit your Prudential AVC account (general advice to avoid this issue is to stop AVC contributions 2-3 months before retirement if not deferring LGPS). Until it does the final value of the AVC pot isn't known. Check your Pru account to see if a payment was made in late July early August.

LGPS will then need to do all the background work to ensure your tax free AVC and pension doesn't breach the lifetime allowance, they then need to undertake the process to withdraw the Pru funds, hence why it can take months.

Silvertabby

When did you make your last AVC payment? If you let it run right to your last day of service, then end of August would be good going, but end of September wouldn't be unusual. But if you stopped your AVCs a month in advance of your retirement then I'd ask your LGPS for an update.

Maria2512

ok thanks for your input.

My last AVC was deducted from my final pay, June 26. I will follow up next week with both parties and will let you know the outcome if anyone is interested. Meanwhile I will do some research as to timelines, compensation for late payment etc

Marcon

Look at your authority's LGPS website and read about how to initiate a complaint - from the sound of it you've not yet done so.

daveyjp

https://forums.moneysavingexpert.com/discussion/comment/82148839#Comment_82148839

LGPS AVCs are a specialist area, even more so with the salary sacrifice set up.

As the OP has now confirmed there was an AVC contribution with their last pay and silvertabby has advised, the timescales to date is far from outside the expected time given in the LGPS retirement paperwork.