Money 4life avc

[merfyn1968]

I have an avc with Scottish widows and am going to continue paying it into the new collective pension when it starts….but if I wanted to then can can I take it in three years aged 60 when I retire alongside my rapper and rmsps pension

[merfyn1968]

Correction….RMPP

[RobertT]

You can only use your existing AVC's to fund the tax free lump sum with RMSPS/RMPP benefits. Or else transfer them out.

If you pay into the new AVC via the RMCPP, they can only be taken with those benefits. Or else transfer them out.

AVC's are not interchangeable between schemes!

[the beautiful bd south]

You can only use your existing AVC's to fund the tax free lump sum with RMSPS/RMPP benefits. Or else transfer them out.

If you pay into the new AVC via the RMCPP, they can only be taken with those benefits. Or else transfer them out.

AVC's are not interchangeable between schemes!

I think it depends on the type of scheme you have.
I phoned Scottish widows today and was informed I could take my current AVC when I reach the correct age, regardless of when I take my final salary.
I have a flexiplan.

[robking]

You can take your Flexiplan benefits before your main RMPP benefits but if you're in the Bonusplan scheme which is for Section C members only, you can only take Bonusplan benefits at the same time as RMPP. Bonusplan finishes on October 6th, the funds will remain invested.
I don't know if the rules around AVCs are changing from October 7th I'm only joining the Lump Sum booster, I've got my own private SIPP (Self Invested Pension Plan) and a stocks and shares ISA instead of AVCs.

[RobertT]

You can only use your existing AVC's to fund the tax free lump sum with RMSPS/RMPP benefits. Or else transfer them out.

If you pay into the new AVC via the RMCPP, they can only be taken with those benefits. Or else transfer them out.

AVC's are not interchangeable between schemes!

I think it depends on the type of scheme you have.
I phoned Scottish widows today and was informed I could take my current AVC when I reach the correct age, regardless of when I take my final salary.
I have a flexiplan.

As they're pensions, AVC's can be accessed anytime after 55(rising to 57 in 2028).

Looking into this, I believe you can take your AVC separately, but it'll be just as a cash sum, with the first 25% being tax free.
If you want flexibility and drawdown, etc, you'll have to transfer it out

For more info see the 'guide to AVC's' on the RMPP website.

[RobertT]

You can take your Flexiplan benefits before your main RMPP benefits but if you're in the Bonusplan scheme which is for Section C members only, you can only take Bonusplan benefits at the same time as RMPP. Bonusplan finishes on October 6th, the funds will remain invested.
I don't know if the rules around AVCs are changing from October 7th I'm only joining the Lump Sum booster, I've got my own private SIPP (Self Invested Pension Plan) and a stocks and shares ISA instead of AVCs.

I've heard two different scenarios regarding Bonusplan:

1. On the official website - you have to carry on paying into it as long as you're in the job or the scheme closes.
2. In a reply to a direct question from me – you can stop paying in but you also cease to be a member of the RMPP from then on, so no more contributions in the DBCBS.

You don't have to take Bonusplan with RMPP benefits, as when I left I transferred mine over to my personal pension.

AVC rules won't really change when the RMPP closes.

*Section F members can also pay into Bonusplan.