NILGOSC
Circular
05/2006b – July 2006
As many of you will be aware
there have been some significant changes to the tax rules governing pension
schemes including the LGPS in
Even in the first few months
since the changes, we have witnessed a significant increase in members wanting
to make additional voluntary contributions, especially to boost their tax-free
cash sum. Before the changes were made, members making AVCs
had to elect to purchase a pension with their AVC fund at retirement. The
option to take the fund as a tax free cash sum (subject to certain limits)
provides additional flexibility for members, even for those on target to
achieve 40 years service.
More and more members are
looking at their retirement plans much more closely, especially if they wish to
retire early. The tax changes are helpful in that respect in that the AVC
facility may be of interest even to those with only a short time to retirement,
if looking to boost the tax free cash sum that they will receive.
Our in-house AVC provider, Prudential, has been active in promoting the AVC facility to members and since their appointment in 2001, over 1500 members have began making additional provision for their retirement. The NILGOS Committee regularly reviews the performance of its AVC provider, taking independent advice from its investment advisers, and I am pleased to report that the Committee is satisfied with the service being provided by Prudential in all respects, including the investment performance of their funds.
Up until now the main thrust of
educating members about the AVC facility has been via newsletter updates and
delivering presentations to staff.
Given the importance of the latest changes and also from
feedback from senior management at some organisations in recent months we have
asked Prudential to make available an individual meeting service at work
locations so that chief executives, directors and senior managers can discuss
their own situation on a one to one basis.
Such individual meetings will be
arranged on a first come first served basis.
Group presentations for your
staff can also still be arranged upon request and we encourage you to make this
service available to your staff.
To
request either service, please contact our AVC account manager at Prudential,
Robert Stormonth either by e-mail at robert.stormonth@prudential.co.uk
or by telephone on 01236 763486. Robert will be pleased to
discuss your requirements with you and make the necessary arrangements.
Yours sincerely
L M White (Mrs)
Pensions Manager