Additional Voluntary Contributions (AVC's)
Important Notice - Please read if you are thinking of investing into an AVC fund
From 1st August 2012, the Prudential is introducing a charge on any fund drawn within 5 years of it being set up.
In House AVC's within the Local Government operate uniquely when compared to any other public sector pension scheme. Subject to certain limits, Scheme Members are able to draw all of their accumulated AVC as a tax free lump um when taken with their main scheme benefits.
This is quite risky for the Prudential and they have decided to introduce a sliding % scale of charges to off-set the risk associated with this.
A leaflet explaining the charge can be found at the link below:
Please note, any IHAVC taken out with the Prudential where monies are received prior to the 19th August 2012 will be exempt from the charge. Please contact the Pensions Unit if you would like more information about this.