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Moving a Private Pension into public sector AVC scheme

  • 23-10-2010 7:20pm
    #1
    camo
    Registered Users, Registered Users 2 Posts: 41 ✭


    I started a pension a year ago with AIB and lodged a lump sum into it. Since then I have decided I would rather pay into an AVC scheme. I am a public servant. Is it possible to shut down that AIB private pension and move the money into the public sector AVC scheme?


Comments

  • #2
    headofthegame
    Closed Accounts Posts: 5 ✭headofthegame


    Hi Camo,

    I don't think this is possible.

    What you could do is convert the pension fund to a PRSA AVC while continuing to contribute to the Public Sector Scheme. You can maximise your tax relief thorugh contributing to just one or both. With regard to your Personal Pension, I would look at other providers as in my experience the pension area is looked after by ARK Life. A number of my self employed colleagues have been very unhappy with the performance of such funds and have opted to better performing providers.

    Word to the wise, ask for a statement from AIB detailing your total contributions and your current pension value of the scheme. A person I know had a difference of 20,000 EUR between the gross contributions and the current value!

    Best of Luck

    Head of the Game


  • #3
    kaiser sauze
    Registered Users, Registered Users 2 Posts: 1,558 ✭✭✭kaiser sauze


    It is not likely to be possible although, without knowing the full details of the type of scheme you are in, the best advice would be got from and independent advisor whom you can show your paperwork to.


  • #4
    eagle_i
    Closed Accounts Posts: 89 ✭✭eagle_i


    Camo, were you a member of the public service pension scheme when you took out the AIB Personal Pension Plan?

    If the answer is yes, then you need to check precisely what type of plan you have with AIB - Is it a Personal Pension Plan, Personal Pension AVC plan, PRSA plan or a PRSA AVC plan?

    The reason I ask is that each type of plan listed above fall under different rules, especially if you are a member of an occupational pension scheme. In short you can not pay into a Personal Pension Plan while a member of an occupational pension scheme, as revenue rules state you cannot contribute to both a Personal Pension Plan and an Employer's Pension Plan at the same time, you can only pay into one or the other.

    The exception to this is if you took out an AVC plan, is it possible you took out an AVC plan with AIB? If it is an AVC plan, please advise if that is an PRSA AVC plan?

    Sorry for all the questions, but if you were a member of the employer's pension scheme at that time the only type of plan you should had been sold was an PRSA AVC plan, as any other plan would either not be allow under revenue rules or if it is a Personal Pension AVC plan then you will require the permission of your employer's pension scheme trustees to effect such a plan.


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