How to claim Pension / AVC.

Hawkey99 · Post by **Hawkey99** » 13 Jul 2018, 21:24

I know all you have to do is contact the pension centre to get a pension quote but how does it go from there regarding claiming your AVC.

When you have agreed what you are taking with the pension centre do they contact Zurich or do you do it separately.

It seems bonkers that thew figures you get from the pension centre only include your pension and don't include any AVC information.

Surely you would think some combined figures would be provided by somebody.

Has anybody with largish amounts in their AVCs been through this process recently.

Thanks

NWpostie · Post by **NWpostie** » 13 Jul 2018, 23:29

I would be interested to know this too.

Post by **RobertT** » 14 Jul 2018, 05:55

There was a time when AVC values were incorporated into the annual pension statements but that hasn't been the case for many years now. And considering we always get the AVC statements first and have online access whenever we want, there isn't really any need for those values to be included anyway.

Plus as there are a number of different options with your AVC funds, they probably can't realistically all be featured on your statement.

I have no personal experience of getting a pension quote, but your first port of call for all your RMPP queries including AVC's, is the pensions service centre in Sheffield.
I''m sure someone who's got themselves a quote will correct me, but as far as I'm aware any quote you get will include how much your annual pension will be, including any early payment reductions. It will also include how much tax free cash you will get via your AVC's. The PSC will contact Zurich and get a current value of your fund/s and take it from there.

Although in practice what you actually get in tax free cash would potentially vary, due to flutuations in value between getting the quote and actually receiving the cash. There was s thread on this issue fairly recently: https://www.royalmailchat.co.uk/communi ... 27&t=84899" onclick="window.open(this.href);return false;

Otherwise you can work out roughly what you'll get by using the usual formulae: 5% per year reduction for early payment, 20x multiple for value of main scheme benefits, etc.

Hawkey99 · Post by **Hawkey99** » 14 Jul 2018, 20:45

Thanks Robert.

The reason for asking was I got a quote last year but on it there was no mention of AVCS.

Post by **RobertT** » 15 Jul 2018, 08:32

I have no experience of getting a quote, so perhaps someone who has can confirm?

But I would have thought your AVC's would have automatically been included.

Did you query it at the time?

foxyjarvis · Post by **foxyjarvis** » 15 Jul 2018, 19:11

Got a pension quote from Sheffield last month. They provided the Age60 + Age65 benefits, with and without a lump sum, which I knew roughly already on the basis of the annual pension statement they send out. They asked me to return the enclosed form, having ticked one of the three following options
A- Age60 benefits
B-Age65 benefits
C-Both Age60 and Age65 benefits
When they receive this application, they will provide a more detailed breakdown, including AVC's, DBCB fund and Pension Supplement. Why they didn't do that in the first place, I'm not sure, but that's Sheffield for you.

rollsnoyce · Post by **rollsnoyce** » 16 Jul 2018, 19:19

Asked for a 65 benefits plus AVC quote. Got the options which I decided not to take them and was told because I signed the first form I would have to stop contributing. How can you signe your benefits away before getting the figures? I have no choice now and will loose death benefit /I'll health/redundancy. This surely is not legal. Any advice thanks.

BeamishStout · Post by **BeamishStout** » 17 Jul 2018, 11:25

rollsnoyce wrote:Asked for a 65 benefits plus AVC quote. Got the options which I decided not to take them and was told because I signed the first form I would have to stop contributing. How can you signe your benefits away before getting the figures? I have no choice now and will loose death benefit /I'll health/redundancy. This surely is not legal. Any advice thanks.

Not sure if this is good advice you received.

Back in November the ball started rolling for my pensions about 4 months before my 60th (NRA60 and NRA65 taken in April). Fairly late on - possibly March - I did ask if I could just defer taking pension for say another month because the backdated pay was not going to arrive (and be counted for in final salary part of pension). I was told that the whole process would have to be reset. This would have made the earliest date of pension something like July i.e. now but was something I did not want to do. So if my case is anything to go by I see no reason for the business not to proceed with NRA 65 pension if that is what you have now decided. Other things you would have to send off to pensions (back in December in my case) would be 'lifetime declaration allowance', 'payment details' and 'photocopy of proof of identity'. It does state on this December letter - we won't be able to pay benefits until we receive these items .

Personally I'd send emails to the pension people indicating your wishes rather than phone calls. With emails you can often get a specific person who has dealt with your query and sending an email allows you to get your facts and wishes lined up.

Jefferson Starfish · Post by **Jefferson Starfish** » 17 Jul 2018, 12:53

As a matter of interest, what is a lifetime declaration allowance and what type of proof of identity is acceptable?

Thanks.

BeamishStout · Post by **BeamishStout** » 18 Jul 2018, 09:16

Jefferson Starfish wrote:As a matter of interest, what is a lifetime declaration allowance and what type of proof of identity is acceptable?

Thanks.

The 'Lifetime Declaration Allowance' information pensions that needs to be filled in at some point is a list of all your other pension schemes you have benefits in (or about to have benefits in) including personal pensions, stakeholder pensions, FSAVC's (Free-standing AVC) and pensions with current or past employees. Small lump sums need not be declared. In other words the sum total of your pension benefits. Get above £1.03m and you get clobbered for extra tax - only the likes of Moya Greene/Wayne Rooney will be affected.

ID photocopy can be driving licence, passport or birth certificate.

Jefferson Starfish · Post by **Jefferson Starfish** » 18 Jul 2018, 12:52

Thanks