PSI25.3.2 - Flexibility in Pension Provision – Flexible Use of AVCs - Availability

(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)

The flexible use of AVC option may be used in respect of benefits arising from:

• AVCs paid to the employer's main scheme
• AVCs paid to a separate scheme of the employer
• AVCs which, although part of an employer's scheme, were originally paid to secure added years of pensionable service. Such contributions would provide additional benefits on the basis of the scheme's accrual rate. In order for such AVCs to benefit from the flexibility arrangements the added years would have to be turned into a money purchase equivalent
• Free Standing Additional Voluntary Contribution Schemes