# DB scheme & AVCs - what to do in possible redundancy situation?



## Tim O'Flynn (30 Jan 2008)

I'm a member of an occupational pension scheme. It's a DB scheme and I've got 30 years service behind me. My employer is currently negotiating the sale of the plant were I'm currently employed to another pharmaceutical manufacturer. If the sale goes through there will more than likely be a number of redundancies and those redundancies will more than likely be targeted among the workforce who are 50 years of age and older (I'm 55).
I have AVC's that are worth around €18,000.
What I'd like to know is could I purchase an annuity or set up an ARF with the proceeds of a redundancy lump sum as I'm thinking about taking early retirement as well. Many thanks.


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## asdfg (30 Jan 2008)

You should also look at the possibility of early retirement from the pension scheme. 
With 30 years servive you would be entitled to 30/60 of final salary probably less 30/40 of the state pension at age 65. If you were to get in now at 55 they may acturial revalue (reduce) the pension as you are getting it earlier. This would be part of the negioting process. Is there a union? You should try to get this as part of redundancy /early retirement package. You would also be entitled to a smaller redundancy package.

Not sure about the AVC / ARF process.


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## Fisher Black (30 Jan 2008)

Once you have received the redundancy payment you have officially left the company's employment so cannot make further pension contributions (AVCs as you suggested).

If you could ask the company to make your redundancy payment payable by a top-up direct from the company to your pension fund before you are made redundant it may work better for you in terms of planning early retirement.

You could do with a good technical pensions advisor with experience of redundancies and DB Pension Scheme.

Who is your employer's pension consultant?


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