Update on AVCs: The impact of Covid-19 on AVCs
Members with an additional voluntary contribution (AVC), may see their AVC fund value decrease due to the impact the Covid-19 pandemic has had on the stock markets. Depending on where your plan is invested (stock markets, property, bonds, for example), you may have seen your fund value go down recently. The fund’s main AVC provider, The Prudential have put together some helpful FAQs about AVCs and Covid-19 which you should read if you have any concerns or want more information.
If you have a Prudential AVC you can view your AVC account online at www.pruretire.co.uk. The Prudential have advised that their team is working from home, but they still have access to systems and are able to take your calls and emails.
The Prudential’s official statement can also be found on their website.
A small number of our members have AVC’s with our previous AVC provider Utmost Life (formerly Equitable Life). Members with these AVCs have recently been contacted.
Have an AVC and thinking of retiring?
Before you make any decisions about retiring, please make sure you have checked your options and value of your AVC.
If you are an active member, depending on when you contributed to your AVC, you may have different options at retirement. Members who started an AVC after 1 April 2014 will have to take this at retirement, while members who started their AVC before 31 March 2014 will have different options. These options will be given to you when you want to retire. If you’re thinking about retiring, you should visit the ‘Leaving the scheme or thinking of retiring?’ webpage, a link can be found under Related Pages.
Your LGPS pension is still safe
The above update only concerns those members who have an AVC within the LGPS. .
Your main scheme benefits in the LGPS are in a defined benefit pension and is not linked to stock market changes or performance of investments. Benefits are set out in law. Although short term investment values may change, the LGPS as a long-term investor is securely managed to address any longer term impacts such as affects of the coronavirus.