Pension Schemes - Frequently Asked Questions
Questions on Update no 135 (Lump Sums)
Q. My client is retiring very shortly. He has been paying AVCs. Can he take his main scheme lump sum when he retires and his AVC lump sum later?
A. Yes - in cases where the AVC provider is unable to settle your client's AVC fund and/or the benefits he is entitled to from the fund by his retirement date and subject to the following conditions:
- in aggregate, your client's main scheme and AVC lump sums will be within Revenue limits.
- your client entered into an AVC arrangement before 8 April 1987 so is able to take all or part of his AVC benefits as a tax-free lump sum.
your client has not opted to defer taking his AVC benefits beyond the
time the main scheme benefits have come into payment (see paragraphs 54-55
of Update No 54). If your client has opted to defer taking his AVC benefits
he may only receive a further lump sum if he has opted to take a lump
sum from his AVC fund when his main scheme benefits come into payment
while deferring taking his benefits from the residual fund.
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