Transferring PRSA AVC into ARF - crystalising losses?

[Protocol]

This query is about what happens at retirement when an AVC fund is transferred into an ARF.

There are two AVCs:

1. First is a public sector occupational AVC with Cornmarket/Irish Life, worth about 30k. This policy is in force since 1992.

2. The second is a PRSA AVC with Eagle Star, just 2 years old. It is invested across many funds, and is showing a loss, maybe 10%, on the contributions of 24k.

My query: what actually happens at retirement?

Do we encash both AVCs and buy a new ARF?

Or is the PRSA AVC simply renamed an ARF, with the same funds, etc.?

Or

 

[LDFerguson]

Assuming you've already dealt with maximum tax-free lump sums, Approved Minimum Retirement Funds and choice between buying an ARF or an annuity, you encash your AVCs and invest them in an ARF or two.

You should probably be able to set up your ARFs with Irish Life and Eagle Star in the same funds so you're transferring into the same funds at the same prices.