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AVC Drawdown
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Email: sales.support@irishlife.ie

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AVC Drawdown

The 2013 Finance Act introduced a facility to allow certain people who have made Additional Voluntary Contributions (AVCs) to avail of a once-off drawdown of up to 30% of their fund value. The Finance Act was passed on 27th March 2013. Those eligible may avail of this once-off drawdown until 26th March 2016.


The 2013 Finance Act introduced a facility to allow certain people who have made Additional Voluntary Contributions (AVCs) to avail of a once-off drawdown of up to 30% of their fund value. The Finance Act was passed on 27th March 2013. Those eligible may avail of this once-off drawdown until 26th March 2016.


Overview

Important Notes

We would draw your attention to the following notes. It is important that pension scheme members read these before completing an application to draw down their Additional Voluntary Contributions.

 

Eligibility

Anyone who has paid AVCs to an occupational pension scheme or to an AVC Personal Retirement Savings Account can avail of this option. Anyone who paid AVCs to an occupational pension scheme and subsequently transferred their benefits to a Personal Retirement Bond can also avail of this option on the AVC element of their transfer payment. This is dependent on the terms and conditions of the Personal Retirement Bond purchased.

In the event that we do not have a record of AVC payments on a Personal Retirement Bond (PRB), we will require one of the following:

  • A previous Benefit Statement
  • A previous set of leaving service options
  • A payslip showing evidence of AVC deductions
  • A note from the Trustees of the plan which bought your PRB advising you made AVCs

The AVC amount available to draw down will be based on the value of a member's fund as at the date Irish Life Assurance plc receive full information required and a completed AVC drawdown form.
If there is a Pension Adjustment Order, then either party to the Pension Adjustment Order will be able to draw down 30% of their AVC fund value.

Limits

Only one drawdown can be made over the three year period of this scheme. The maximum drawdown allowed is 30% of the fund value. If a person has more than one AVC policy they may make a drawdown from each policy.

Taxation

All drawdowns will be taxed at 41% unless a tax certificate is received by Irish Life from the Revenue Commissioners through the Revenue online system. A person wishing to have a tax certificate submitted will need to apply to their local inspector of taxes and quote the employer reference number for Irish Life Assurance plc which is 4567139H.

Funds 

Member's drawdown amount will be taken in proportion to their investments in each fund in which member's contributions are invested. If they want to have their drawdown amount taken in a different manner they may wish to take advice in relation to their fund choice to see if it is appropriate to complete a fund switch before they apply for their AVC drawdown amount.

Market Value Adjustment (MVA)

An MVA can apply on the Secured Performance and Capital Protection Funds. This will have the effect of reducing the value available to the member from these funds. Details of the latest MVA reductions are available on our website. The member can also contact their Financial Advisor or Irish Life Corporate Business.

Payment

All payments under this AVC drawdown facility will be paid by electronic fund transfer to member's Irish bank account.

Application form

We must receive a fully completed application form in order to process a payment. This form must be authorised by the scheme trustees, or anyone authorised to act on behalf of the scheme trustees, for all member of occupational pension schemes.
Trustees can give a once-off blanket authorisation for any members who wish to avail of the AVC Drawdown facility by writing directly to Irish Life Corporate Business.

Drawdown Form

The form is also available on our website.

Financial Advice 

Members should take financial advice before making an application to draw down Additional Voluntary Contributions. If they are close to retirement or are over age 50 and have left employment of the company from which their benefits are based, they may have other options available to access benefits from their AVCs.

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