PSI25.3.6 - Flexibility in Pension Provision
– Flexible Use of AVCs- AVC Benefits Paid with Employer
Funded Benefits
(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)
If a member chooses to take AVC benefits at the same time as
employer funded benefits, the member may select (where scheme rules
allow):
- To purchase an annuity derived from both
employer funded benefits and AVC funds
- To purchase an annuity derived from the
employer funded benefits and take income drawdown from the AVC
fund
- To purchase an annuity derived from the
AVC fund and take income drawdown from the employer funded
benefits
- To take income drawdown from both employer
funded benefits and AVC funds
- To take part annuity and part drawdown
from either source
The existing rules on any entitlement to a lump sum will
apply.
