# over subscribe to AVC



## !RAY (23 Feb 2010)

Hi
I have a current defined benefit pension  plan with my company,i also put money into the company Avc plan.
I have another 25 years till i retire and have heard that it you can over subscribe. Therefor you lose your money.
Is this possible ,and for a 35 year old what would be the average amount to put in. I know that it depends on what you want. EG i want to retire early.
Thanks
!RAY


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## !RAY (26 Feb 2010)

..


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## Conan (26 Feb 2010)

Depending on the benefits provided by your Defined Benefit scheme and your level of AVCs, it is possible to overfund. However your Trustees/Scheme advisor should ensure that such is unlikely. 
In reality as you get closer to retirement you should seek direction from the Trustees/Advisor so as to ensure that you do not overfund. Also, unless your DB scheme is proving close to maximum benefits (incl post retirement indexation, spouses pension etc) it is unlikely that you will overfund.
Also, whether your DB scheme continues for the next 25 years is also a moot point.
Finally, in paying AVCs you cannot technically do so solely in anticipation of early retirement. In calculating the maximum level of AVCs you can only do so based on the main scheme benefits and the normal retirement age.
If in doubt, ask your Trustees or Scheme advisor.


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## !RAY (1 Mar 2010)

Thanks Conan


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## wok20 (22 Jun 2011)

I am in a db scheme and have oversubscribed to my a v c fund.i am now retireing and have been told i can draw surplus and pay tax and usc on it or put it in  arf fund


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## Baracuda (22 Jun 2011)

Over subscribed means having penison benefits that exceed the max allowed by revenue. Because of the fact that you can avail of an ARF this means that you have not over subscribed to your pension you could take all of it now though and pay tax, prsi and USC but with careful tax planning you could invest in a ARF and draw down the money over a number of years and reduce the overall tax liability on the over all fund.


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