# When can I take my AVC benefits?



## nad (7 Feb 2007)

Is it possible to recieve my avc contributions before 65, e.g. if iretired at 60,and who makes the decision,is it my employer or my avc management company?


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## jpd (7 Feb 2007)

*Re: avc,s*

Normally, your AVC benefits are taken at the same time as your pension scheme benefits ie when you retire. If you retire before the normal retirement age as defined in the scheme rules, then yes you would normally be able to take your AVC benefits. However, you need to check with your pension scheme administrators


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## Guest126 (7 Feb 2007)

*Re: avc,s*

It is compulsory, rather than normally.

The AVC benefit must be taken at same time as main scheme benefit.


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## ajapale (7 Feb 2007)

*Re: avc,s*



CapitalCCC said:


> The AVC benefit must be taken at same time as main scheme benefit.



So if the occupational pension scheme provides for _early retirement_ or _retirement through ill health_ then the associated AVC benefits can drawn as well at the same time?


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## Guest126 (8 Feb 2007)

It's complulsory - AVC benefit is a "part" of the main plan benefit.


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## Guest127 (17 Feb 2007)

I have a relatively small avc. I retired in December and phoned Eagle Star to enquire about what happens next. ( I want to convert it to an arf and just leave it there) Eagle Star said that my employer is the one who should inform them and they would take it from there. that was 2 months ago. Should I do something as I feel my previous employer hasn't a bull's notion of this avc, which was not deducted in the normal manner but was one lump sum payment within the limits. the tax authories made the refund straight after I sent them a receipt from eagle star. (I don't really want to draw down any of the arf but apparantly I should drawn down 5% or something like that as I am going to be taxed on a deemed withdrawal anyway.)
Just thinking. if you are taxed on a 'deemed' withdrawal for say 10 years on the trot - say from 2007 to 2016 af 5% per annum. could you drawn down 50% tax free in 2016 as you had already paid tax on it?


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## Guest126 (18 Feb 2007)

Draw it down.

Speak to your employer, fast.

Find out from ES what they want from your employer (in writing).

To answer your last question - No.


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## Guest127 (19 Feb 2007)

CapitalCCC: thanks for reply. will  get on to employer straight away. don't really want to draw it down as that will negate any benefit gained from tax refund in first place ie if I draw if down now I will be (probably) be liable to tax at 41% as  a) I have a reasonable  pension and b) I am currently back at work with a different emloyer and c) I was hoping to leave it alone for a future rainy day. I know that any interest earned on the arf is tax free so the more interest the arf earns the better.
I will see what my former employer has to say and come   back here later. cheers  and thanks


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## Guest126 (19 Feb 2007)

You're welcome Cuch.

A deeemed withdrawal of 1% will be taxed anyway, this will rise to 2% and then 3% over the next couple of years.

That is why I recommend that you withdraw at least this deemed amount.

The ARF does grow tax free - even if you draw down the 1%/2%/3% with any fund growth your fund size should not be diminished by these small withdrawals.

You may want to use your AVC fund to provide for your tax-free lump-sum if it is not too late to do so.


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## Guest127 (20 Feb 2007)

CapitalCCC: employer has just responed that its up the_ me_ to contact Eagle Star and get the arf sorted. got a tax free lump sump on leaving so I doubt I will have any tax free lump sum allowance left. will find out from ES. ( usual tax free terms 1.5 times annual salary, + 25 weeks early retirement payment - this could have been up to 27 weeks but my age determined the number of weeks )     thanks for advice


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## Guest126 (20 Feb 2007)

No problem cuch - I hope you have a nice enjoyable retirement!


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## Guest127 (21 Feb 2007)

thanks Capital: trouble was that after 40 odds years I couldn't do nothing. so I asked around and (should have hit myself over the head with a wooden plank) found a 28 hour job. really really don't want these hours so must keep looking for something less.  but in the meantime.......cheers and thanks.


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## Guest127 (3 Apr 2007)

just in case anyone is interested. the 'deemed' withdrawal on a arf doesn't have to take place until  you are 60. over 60 in fact as it doesn't come into play until you are 60 (or older) for the whole year. its 1% this year, 2%  in 2008 and 3% in each subsequent year.


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## bigred (3 Apr 2007)

To get around having to wait until the main plan benefit to also take my AVC benefit e.g. 65 in my case could I set up a PRSA outside my occupational scheme to house my AVC's and take the benefit at 60?


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## Guest126 (4 Apr 2007)

No.

As name suggests, AVC benefits are in addition to (and linked to) main plan benefits.


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## bigred (4 Apr 2007)

but if I wanted to I can elect not to make any AVC's to my main / company plan and seperatly use up my AVC allowance for a PRSA which I can take at 60?


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## Guest126 (4 Apr 2007)

No - it is still governed by the Trust Deed and Rules of the main plan (hence the name AVC!).


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## bigred (5 Apr 2007)

thanks for the feedback CCC.. sorry I'm struggling to understand this but I think I have it now!.. Is it because when opening a standalone PRSA - AVC i must disclose information on my main pension scheme?  in this way I can see how the two could be linked. If this is the case I guess the fact I am already a member of the work scheme means I am not eligible to open a plain old standard PRSA and not refer to the fact I have a work scheme already in place!?


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## Guest126 (5 Apr 2007)

Exactly - and no, you can't (shouldn't!) do that!


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