The benefits

Benefits on retirement

Your AVC fund may be used to buy a pension on the open market or may be used towards the tax-free cash sum you may take at retirement, or maybe be transferred and drawn down overtime.

HM Revenue & Customs’ rules limit the amount of tax-free cash available from the Lafarge UK Pension Plan to 25% of the value of your pension benefit from the Plan (including your AVCs).

By careful planning, it should be possible over time to build up an AVC fund to satisfy your tax-free cash needs at retirement and either:

  • Keep intact your pension entitlement in the Lafarge UK Pension Plan; or
  • Limit the extent to which you give up pension for a tax-free cash sum.

You should monitor the build-up of your AVC fund to try to ensure that your AVC fund will not exceed the amount of tax-free cash you could draw at retirement. However, if this happened, any excess AVCs must be used to buy a pension annuity on the open market or transferred and drawn down overtime.

On leaving the Company

For your AVCs, you will have the same option as you select for your normal Plan benefits:

  • You can leave your AVCs fully invested with the Plan’s investment managers until retirement if you deferred your Plan pension;
  • You can transfer your AVCs to another pension arrangement if you do this with your main Plan benefits
On death in service

The money in your AVC account will be paid at the discretion of the Trustees as a tax-free cash sum to anyone nominated by you, or to one or more of your relatives or dependants, or to your Estate.