# Should I stop my AVC?



## Fiona Mac (25 Mar 2009)

I am a public sector worker and have been paying an AVC for the last nine years approx to 'buy back years', having gone into teaching in my late 20's.  With the introduction of the pension levy I can no longer afford to pay my AVC.  If I stop paying now, will I be penalised?  Will I still get the money I've already paid on retirement?


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## PaddyBloggit (25 Mar 2009)

You won't be penalised. It just stops and you'll get access when you retire.

Did you consider reducing your AVC contribution to the bare minimum?


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## LDFerguson (26 Mar 2009)

When you say your intention was to buy back years, did you consider actually buying back years using the notional service purchase scheme, rather than making AVCs?


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## Fiona Mac (26 Mar 2009)

To be honest Liam, I don't remember getting any advice about the notional service purchase at the time.  Cornmarket, the company that deals with the majority of teachers, were really pushing the AVC's.  The financial jargon can be difficult to get around sometimes and I guess if it wasn't for the new pension levy, I'd continue on paying my AVC.


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## LDFerguson (26 Mar 2009)

Hi Fiona.  You are certainly not alone.  Have a look at this thread and the links off it.


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## Bat (20 Jul 2013)

*AVC costs*

Yeah, I'm a teacher and got burned on Cornmarket AVC's. I was never informed about the NPS scheme and only after I started to make big losses on Cornmarket AVC's and after watching the Primetime investigation I stopped. The bizarre thing is that even after the shocking Primetime investigation my colleagues still pay money into their AVC's. Most AVC schemes charge a max of 1 to 1.5% while CM charge about 4% and a big set up fee, so if you invest 100 euro you have to make back 4 Euro just to break even? And all this was pushed by our Union which is disgraceful. Anyway my friend you are not alone, just go with the NPS


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