# Lump sum from DB scheme or from AVC fund



## chasie (17 Jul 2009)

Hi all
I am a member of a DB scheme & have also built up a considerable AVC fund over my 30+ years of service 
When I retire (early) Can  I opt to put all my AVCs into an ARF & thake my lump sum at its max at 1.5 times salery and regular income from my BD scheme


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## StevieC (17 Jul 2009)

You can take the tax free lump sum from the main DB scheme and a residual pension.

You AVC's can be put in an ARF if you qualify for one or an AMRF and the balance in an ARF.

In order to avoid having to put money in the AMRF (€63,500), you need a guaranteed lifetime income of €12,700 per annum.



www.CheaperLifeAssurance.ie


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## Homer (20 Jul 2009)

Hi Chasie

While it's likely that you *can *take your lump sum from your DB pension, it's probably not all that good an idea unless the commutation factors (i.e. the amount of cash you get per € p.a. pension) are very generous.

Have you received a retirement options statement from the administrators of your pension scheme?  And are you sure that you will be allowed to take early retirement? The majority of DB schemes are currently refusing to allow early retirement because of solvency problems.

Regards

Homer


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## Apollo (21 Jul 2009)

If the scheme is giving you 1.5 times salary as a tax free lump sum then you can ARF your AVCs providing, as Stevie C points out, your guaranteed income income for life is >€12.5k.

If the scheme doesn't provide 1.5 times salary as a tax free lump sum one would usually dip into their AVC fund to maximise their tax free lump sum.

Give the figures to your financial adviser & he/she should be able to give you a more exact answer.


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