PSI14.2.32 - Transfer of AVC Benefits Already in Payment under Income Drawdown

(This archived guidance relates to HMRC discretionary practice before the 6th April 2006. For current guidance on Registered Pension Schemes see the Registered Pension Schemes Manual)

Where a member has received Additional Voluntary Contributions benefits prior to receipt of their employer funded benefits and a transfer payment is being made to a buy-out policy or another approved scheme (excluding any scheme where the transfer value will be a retained benefit) the Administrators or Life Offices (in respect of buy-out policies) will need to supply to the receiving scheme (or Life Office):-

• the details of the status of the member,
• statement of the member's annual earnings after age 50 and
• the aggregate amount of the additional voluntary contributions pension drawn up to the date of the transfer.

The reasoning for this to ensure that the additional voluntary contribution benefits are brought into account for the purposes of the maximum benefits limits checks at their 'pension equivalent'. See PSI25.3.14.