AVC fund options - early retirement

Spouse age 53 taking early retirement from Public Service.

AVC fund of circa 10 years contributions and circa €60 k value, fund is with new Ireland Assurance

To preserve the fund without further investment and fees eating into it is what we want to do with a draw down at age 60.

NIA less than helpful with options, said they will continue to invest and chew €40 per month in fees.

Can we insist the fund is converted to a bond or to cash and maintained at minimal cost? Are there any other options?

Is your spouse actually taking an early retirement pension , or just finishing work?
If she is retiring and drawing a pension, then she must also draw down the AVC fund. She could use some of the AVC fund to maximise her tax free lump sum. But the balance would have to be used to either buy an Annuity (additional pension) or invested into an ARF, from which an income can be drawn down.
If however she is not yet drawing down her PS pension, then the AVC fund remains as is until the main pension is drawn down. Your options in terms of costs are limited, in that New Ireland still have to manage the structure (investment management, regulation, compliance, administration). The Annual Management Charge will vary with the chosen investment fund, but is unlikely to be less than 0.75% pa.
Important to remember that the AVC is linked to the main PS scheme, so whenever she draws down that pension she must also draw down the AVC fund.

The terms of her particular AVC scheme say she cannot draw down the AVC portion until she reaches 60 so she is receiving the PS portion of her pension until then.

I nearly got torn apart getting that answer!