I've a few quick questions on PRSAs and AVCs that I suspect someone in the know here should be able to answer quickly:
1. Are PRSAs that are not set up as AVCs to an occupational pension scheme subject to any total funding limits other than the 2million standard fund threshold (SFT)? For example, if you're in an occupational scheme the revenue limit on total pension benefits after 40 years service including AVCs is 2/3 final salary. Does any equivalent limit other than than the SFT exist for someone contributing to a PRSA that isn't set up as an AVC? Obviously for the purposes of calculating whether the SFT has been reached any pension benefits someone has accrued under occupational schemes over the course of their life need to be taken into consideration.
2. I don't think it's possible but I just wanted to check: is it possible for someone who's currently contributing to an occupational pension scheme to set up a separate PRSA that is not regarded as an AVC? Or is their only option for making further pension contributions to make AVCs or set up a PRSA-AVC?
I'm asking because intuitively it seems weird to that people in occupational schemes would be arbitrarily subject to lower total funding limits. Maybe I've missed something?
1. Are PRSAs that are not set up as AVCs to an occupational pension scheme subject to any total funding limits other than the 2million standard fund threshold (SFT)? For example, if you're in an occupational scheme the revenue limit on total pension benefits after 40 years service including AVCs is 2/3 final salary. Does any equivalent limit other than than the SFT exist for someone contributing to a PRSA that isn't set up as an AVC? Obviously for the purposes of calculating whether the SFT has been reached any pension benefits someone has accrued under occupational schemes over the course of their life need to be taken into consideration.
2. I don't think it's possible but I just wanted to check: is it possible for someone who's currently contributing to an occupational pension scheme to set up a separate PRSA that is not regarded as an AVC? Or is their only option for making further pension contributions to make AVCs or set up a PRSA-AVC?
I'm asking because intuitively it seems weird to that people in occupational schemes would be arbitrarily subject to lower total funding limits. Maybe I've missed something?