Avc

[rkss]

Does anyone know if one will be able to continue to pay into avc when cdc comes into play?
SW did not know answer to this, what will happen to funds in avc if one cannot continue to pay in? Thanks

[RobertT]

The answer is in the booklet you should have got a few weeks ago!

Members of the RMPP will no longer be able to pay into Bonusplan or Flexiplan, but their savings will still be used to fund the tax free lump sum when taking NRA60/65 benefits.
Alternatively there is also the option to transfer out to another pension arrangement.

Members of the RMDCP will have to stop paying in both their basic contributions and any AVC's they make.

The plan is that members of the new CDC scheme will have two options for paying in extra:

1. The Lump Sum Booster – Both you and RM pay another 1% of pensionable pay into the lump sum section of the scheme.
2. AVC's – To build up an additional savings pot alongside your CDC and lump sum benefits. Probably similar to Flexiplan.

The important thing being that the new arrangements will be separate from what you've already saved.

More info on the CDC scheme is here: https://www.myroyalmail.com/collective-plan

[hermon]

Quick question - is it possible to transfer a free standing avc from a private provider into the flexiplan and if so is there a limit or any implications (other than poss transfer fees) ?
Thanks

[RobertT]

As far as I'm aware, transfers in aren't allowed.

[NorthernBoy]

Quick question - is it possible to transfer a free standing avc from a private provider into the flexiplan and if so is there a limit or any implications (other than poss transfer fees) ?
Thanks

I seem to recall that I once asked them if I could add a lump sum to my avc fund, to which the answer was no. I think they said that the money has to come from salary.

[RobertT]

I seem to recall that I once asked them if I could add a lump sum to my avc fund, to which the answer was no. I think they said that the money has to come from salary.

One off lump sums into Bonusplan have never been allowed.

But at one time I used to pay annual lump sums into my Flexiplan shortly before the end of the tax year, aswell as my regular weekly payments.

Up until 2006, the maximum allowed into a workplace pension was 15% of pay and I contacted them each year for a lump sum quote.
I had to pay the full gross amount by cheque and then got the tax refunded via wages a few weeks later, which I then put into my personal pension.

I then decided just regularly paying in more each week was the better option.

I think lump sums into Flexiplan were allowed up to 2019 when Scottish Widows took over.