One snag when cashing in AVC

[fly-catchers]

is you only get 90% straightaway. And depending on the stock market by the time you get the other 10% it might be less. Finally the Zurich website for my Bonusplan has been updated and I assume the remaining cash is winging its way to my current account! Its lost about £400 with the change in market value over what it was worth when the main section was paid. And I am using the amount shown on the units purchased/sold to give me this remaining amount. But won't be certain until it appears in my account.

[POSTMAN]

Didn't think you could cash AVC's in!

[RobertT]

Didn't think you could cash AVC's in!

AVC’s (Bonusplan & Flexiplan) are normally used to fund the tax free lump sum when taking your main scheme benefits, which is what I believe fly-catchers has done.

But you can treat them as normal DC pensions and access them under pension flexibility rules as well, but only 25% is guaranteed to be tax free. More info here.

[nataddick]

I took my first Bonusplan AVC 'pot' when taking my NRA 60 and although the provisional figure quoted to me did move downwards but by less than £10, RM Pensions actually wrote it off.

I have just got out my documentation from around that time and in fairness to RM Pensions they did make it clear that the AVC fund value used was provisional as it had been produced about a month before my 60th birthday. I was also told that the actual final fund value would be available approximately 6 weeks after the payment date (my birthday) and that I would be advised of any changes in the provisional value which I was ! So, it was clear to me at the outset that the time from the provisional quote until the final quote would be 10-12 weeks.

Fly-catchers, I am not sure that the 90% you quote is a general rule but rather what happened in you own case. As I have said, I got 100% but no doubt there are always winners and losers caught by the fluctuations of this type of investment.

I am building up a small but nevertheless worthwhile second Bonusplan pot to to be taken with my NRA 65 benefits.

[fly-catchers]

Yes nataddick that sounds exactly like my handling with RM Pensions. I knew that I was unlikely to get the highest amount and as you say they do say that in their paperwork. When I say 90% I am refering to the amount I got on my birthday. In their paperwork they say they reduce the payment by 10% so they don't overpay you. And after 6 weeks deinvest your AVC and I assume pay the outstanding. After you had your AVC payment on your birthday when did you receive the remainder of it- the final quote?

[nataddick]

fly-catchers - just had a look at my paperwork again and it was between 8 and 9 weeks after my 60th birthday that I was advised of the difference from the provisional figure. The final figure was actually lower but less than £10 on £4,400, so no adjustment was made. I am, of course, still invested and according to the Zurich site yesterday, my current Bonusplan is worth £650 with around 3.5 years still to go until my State Retirement Age of 66 !

[BeamishStout]

Fly-catchers, I am not sure that the 90% you quote is a general rule but rather what happened in you own case. As I have said, I got 100% but no doubt there are always winners and losers caught by the fluctuations of this type of investment.

My AVCs will be cashed in and all of it will be tax-free (just less than 25% of my RM pot) in about 8 days time but like the experience of Fly-catchers I will receive 90% of its provisional value initially. 6 weeks after the 90% has gone in, they will disinvest my AVC fund and recalculate the benefits etc. So I assume this is RM's way of dealing with these AVCs. But why they cannot just give you the value of the funds at the due date after any charges is somewhat bizarre After all if you cash in any ISAs the value will be the value at the date of dis-investment!

I am taking full pension benefits (NRA65 with reductions, NRA60 without) with commencement from my 60th due early April. Being a section C member, using my AVCs in this way as many have suggested, has meant I haven't had to commute any of my pension into a lump sum.

[fly-catchers]

My AVCs will be cashed in and all of it will be tax-free (just less than 25% of my RM pot) in about 8 days time but like the experience of Fly-catchers I will receive 90% of its provisional value initially. 6 weeks after the 90% has gone in, they will disinvest my AVC fund and recalculate the benefits etc. So I assume this is RM's way of dealing with these AVCs. But why they cannot just give you the value of the funds at the due date after any charges is somewhat bizarre After all if you cash in any ISAs the value will be the value at the date of dis-investment!

It appears that the Pension Centre gives you the 90% of your AVC on your birthday while actually keeping your entire AVC open until they finally sell all the units about 6 weeks later. And them I assume in due course pay you the outstanding of what they gave you and its actual current value when they disinvest it. A most odd arrangement I must say! My AVC was disinvested on the 16th March but no word yet from the Pension Centre or sign of any funds so far in my account.

[nataddick]

I had absolutely no mention of the 90% in any of my own documentation but then things may have moved on since then !

There was a reference in the documents to the fact that there was a delay in getting confirmation of my pensionable pay for benefit calculation purposes but then the delay in AVC disinvestment is painfully antiquated compared when to my other fund providers. Perhaps the requirement to get defintive final salary and CSDB is dictating the latter, even though this could sometimes be detrimental to members.

[NWpostie]

Fly-catchers, I am not sure that the 90% you quote is a general rule but rather what happened in you own case. As I have said, I got 100% but no doubt there are always winners and losers caught by the fluctuations of this type of investment.

My AVCs will be cashed in and all of it will be tax-free (just less than 25% of my RM pot) in about 8 days time but like the experience of Fly-catchers I will receive 90% of its provisional value initially. 6 weeks after the 90% has gone in, they will disinvest my AVC fund and recalculate the benefits etc. So I assume this is RM's way of dealing with these AVCs. But why they cannot just give you the value of the funds at the due date after any charges is somewhat bizarre After all if you cash in any ISAs the value will be the value at the date of dis-investment!

I am taking full pension benefits (NRA65 with reductions, NRA60 without) with commencement from my 60th due early April. Being a section C member, using my AVCs in this way as many have suggested, has meant I haven't had to commute any of my pension into a lump sum.

Hope you don't mind me asking once everything is cashed in, how much pension will you get weekly ? it would give me some idea what to expect.

[BeamishStout]

Hope you don't mind me asking once everything is cashed in, how much pension will you get weekly ? it would give me some idea what to expect.

In the last year or so we all received a white booklet from RM headed 2018 Pension Review: Our Proposal which gave us a 'personal illustration of the possible effect of our proposal' On page 2 it stated a total illustrative pension if you stay in service until aged 60 and take all of your benefits in full (with early retirement reductions). With my 60th just a few days into the new scheme start my "before" and "after" numbers are within £1. The amount I will be getting shortly corresponds exactly to these numbers as well. I will have been in RM for just shy of 20 years when I retire (section C) if this helps

My pension will be paid monthly but you can have it paid quarterly if you want.