How to pay lump sum into Pru LGPS AVC

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Sobraon
Sobraon Posts: 325 Forumite
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in Pensions, annuities & retirement planning
Hi everyone, Mrs S is a member of the LGPS and wants to pay a lump sum into the Prudential LGPS scheme and I am looking for a link to how to do this. She currently contributes regularly but regular contributions take 6-8 weeks to change so they are a bit inflexible.

The Pru LGPS AVC handbook specifically mentions lump sum contributions but does not detail the procedure. I have emailed avc.admin at prudential.co.uk twice now with only a 'message received' type response for my request for a link to the procedure. Also I cannot find any details on the WWW because taking a lump sum out dominates the search results.

Finally for general information I would normally ring them but I never do anything pension related unless I have it in writing (sorry I know this is a bit 'tin foil hat’ ).

So if anyone know of a web link that would be great!

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  • OldBeanz
    OldBeanz Posts: 1,405 Forumite
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    Additional Voluntary Contribution facility;

    AVC Service Centre
    Prudential
    Lancing
    BN15 8GB
    0345 600 0343
  • Sobraon
    Sobraon Posts: 325 Forumite
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    Thanks OldBeanz I might have to write a letter a letter to them to confirm the process.
    I have tried ringing the relevant LGPS pension fund this afternoon and they couldn’t tell me. Just seems a bit odd.
  • Drp8713
    Drp8713 Posts: 902 Forumite
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    I may be out of touch, but I didnt think this was still possible in the LGPS.

    How big is the lump sum? Could she just increase the monthly deduction to 100% of her salary (less normal conts and NI), until she has the amount she wants paid in?
  • Sobraon
    Sobraon Posts: 325 Forumite
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    Thanks for your reply Drp8713 you are correct! You can't actually make a lump sum payment ( although the key features document says you can) - its a bit of a play on words - you can only make contributions via payroll.

    What the Pru call a lump sum is really a regular contribution with a duration of 1 month. This information is tucked away in a Q and A document on the Pru website which I eventually found. So this 'lump sum' is limited to 80% of monthly gross (bcause of NI and LGPS regular contributions). Just requires more careful planning.

    Thanks all
  • squirrelpie
    squirrelpie Posts: 971 Forumite
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    Does https://www.pru.co.uk/rz/localgov/ not explain the procedure?


    Second result on a search for Pru LGPS AVC handbook.
  • OldBeanz
    OldBeanz Posts: 1,405 Forumite
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    The contributions you make should be a lot less than 80% of her salary. The Pru do not offer 'relief at source' so the money paid in should be limited to ensure she is not contributing money that she would not have paid tax on.
    .
  • Sobraon
    Sobraon Posts: 325 Forumite
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    Thanks both resolved now.

    The 80% figure was quoted by the Pru not me OldBeanz and her new monthly contribution will be less than that over the next 5 months ( probably to late for a change in October regular contribution now).

    Squirrelpie you have identfied the landing page, thanks, on that page once you enter the LGPS fund you are in you get another page with a range of videos, If you scroll through a number of screens to the bottom of that page and then select England (not Scotland) you get access to one of the key features document (possibly different for each LGPS and England / Scotland?).

    If you then go through that document to the Q and A section one of the answers says someting like all contributions must come from payroll (page 6 I think).

    This might be straightforward for some people but wasnt for me, it required two phonecalls to Mrs S's LGPS Pension Fund (who didn't know) two emails to the Pru (who didn't answer) and a 10 minute call to the Pru (the call taker had to consult with a specialist) and of course posting on here to find the information.

    Anyway as stated all resolved now thanks all :D.
  • OldBeanz
    OldBeanz Posts: 1,405 Forumite
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    Sobraon wrote: »
    Thanks both resolved now.

    The 80% figure was quoted by the Pru not me OldBeanz and her new monthly contribution will be less than that over the next 5 months ( probably to late for a change in October regular contribution now)..:D.

    As long as you're aware that tax relief is restricted to the money she earns each month.
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