Bonus plan and flexiplan

[mr hil.]

I currently pay into both the AVC plans currently available to section c members. The idea was to build up enough funds to be able to take the maximum 25% lump sum without having to reduce any future pension.

When I retire at 60 (which I hope to do) will I be able to use the AVC balances to fund the NRA60 cash lump sum or are they solely attached to my NRA65 pension?

The cash balance fund will be more than enough to take the maximum 25% tax free for the NRA 65 benefits, which I plan to take as close to it's NRA date as possible (circumstances dictating when I actually need to take the "second" pension)

[RobertT]

You can take both your Flexiplan & Bonusplan with your NRA60 pension - that's always been the case.

[mr hil.]

Thanks RobertT, I have been reading all the online bumf and it was not clear to me that I could. The only problem I have now is that I will not have time to build up enough AVC to maximise the NRA60 lump sum before the new scheme kicks in. I left it too late to start saving.

If I were to take both NRA 60 and NRS65 at the same time would the lump sum calculations be separate or combined?

[RobertT]

I haven't got any personal experience of this, but as far as I know the lump sum calculations will be done separately. So they'll do NRA60 first, with any excess AVC cash then factored into your NRA65 benefits.

[grabber]

You can take both your Flexiplan & Bonusplan with your NRA60 pension - that's always been the case.

When i was 60 i taken both and used my avc to boost my lump sum & larger pension per year i also still paying in hopefully to make more for a comfy life