Lapsed AVCs

P

Phil_space

Registered User
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I'm sure some AAM posters have encountered this issue previously...

My wife is employed as a Nurse and, from 1998 to 2001, in addition to her normal pension contribution, she made AVC contributions through Woodchester (Cornmarket). With the USC now the final straw, we need to access all the cash we can get our hands on. Can these contributions be cashed in or do they have to be preserved until retirement? If they can be encashed are there any tax requirements/surcharges to account for the tax relief allowed when contributing? Will Cornmarket also impose an exit charge?

Thanks,

Phil
 
Hi Phil,

Unfortunately AVCs can't be accessed until she retires, or in very limited circumstances if she left the job.
 
Thanks LD. That's a pity. As I've noticed your expertise elsewhere on this, perhaps I could ask you a quick related follow-up. I too work in the public sector, but several years prior to joining I opened a pension with Irish Life (c.1988) which ran for about 1 year. I don't have any policy details, so hopefully they can find it. Could I encash this or could I transfer it to my public sector pension in order for example, to buy notional years?

Thanks in advance.

Phil
 
When you say that you opened a pension with Irish Life in 1988, I'm assuming that it was a Personal Pension - no employer involvement.

You can't transfer a Personal Pension fund into a scheme, such as the public service superannuation scheme. There's a long way around this, in that you can set up a PRSA, transfer your Personal Pension fund into the PRSA and then transfer the PRSA fund into a scheme. But there would need to be very good reason for you to go to this hassle and expense.

The alternative is to simply leave your Personal Pension where it is in Irish Life and it will continue to be invested until you retire, when you can draw it. Irish Life should be able to locate your policy number by your name and date of birth. No harm updating them with your current address too so that they can send you a statement.

Cheers, Liam
 
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