Taking my AVC Extra

With your AVC pot you can get:

Anything you’ve paid into your AVC Extra pot already will remain invested in your chosen fund/s until you take them.

You can change your investment funds even if you’re no longer paying in, so you should continue to check your fund choices regularly to make sure they’re still appropriate for your circumstances. You can learn more on the managing my AVC Extra page.

If you have to leave work because of ill health you may be eligible to get incapacity benefits from your Section of the Fund. You can read more on the below pages:

• My circumstances have changed 1970 Section
• My circumstances have changed 2007 Section
• My circumstances have changed CARE Section

If you are granted incapacity benefits then you can use your AVC Extra pot at the same time to boost your income. The benefits you get will depend on the size of your pot. It will also depend on the terms of the annuity or drawdown provider if you choose one of those options.

This could be done in a number of ways and is at the discretion of the Trustee. You can read more in the guide for AVC Extra members.

If you die after taking your AVC Extra pot from the Fund, in the form of an annuity or drawdown, then there may still be options available for your dependants. This would be under the terms and conditions of your annuity or drawdown provider.

If you're unsure what option to take, you may want to get financial advice before making any decisions. The guidance and advice page will help you find useful sources of information.

You may want to get financial advice before making any decisions. You can get more information on the guidance and advice page.

If you do decide to go ahead with a transfer you can either tell your employer and they will tell the Fund administrator, Railpen. Or you can start the process with Railpen directly by requesting a guaranteed transfer out quote (CETV). The quickest and easiest way for most members to do this is online, although you can still email or call using the details on the get in touch page.

If you are still making additional voluntary contributions (AVCs) you will need to contact your employer to stop them before we can provide a CETV.

To request a CETV, contact the Fund administrator, Railpen using the details on the get in touch page.

You will then get a guaranteed transfer out quote with the value of your AVC Extra pot and details of what to do next.

You can only request one CETV free of charge in any 12 month period, so it’s really important to consider this carefully before you go ahead.

You can also read more about the transfer process in the guide to transfer options.

Pension transfers are one of the main routes used by scammers, so please read the pension scams page for details on what to watch out for and how to protect your pension savings. 

Starting the application process as an active member

If you're still paying in, you’re considered an active member, and you need to tell your employer that you want to take your AVC Extra pot. Your employer will then tell the scheme administrator, Railpen. You can see the full process in the timeline for active AVC Extra members.

Starting the application process as a preserved member

If you’re no longer paying in, you’re a preserved member. In that case you need to contact Railpen directly. You can find the details on the get in touch page. Railpen will then give you further details on what you need to do next.

What will happen if you want to take a bit at a time

If you want to take a bit at a time, this is called a drawdown. For this option you'll need to transfer your pot to a new provider. Railpen does not offer either of these products directly. However, the Trustee of the Fund has appointed Legal and General Investment Management (LGIM) to offer members access to a drawdown facility.

Once you have a new provider in place, Railpen will disinvest your funds and transfer them all, directly to your new provider. If you've chosen to take part of your pot as a tax-free lump sum, this will come from your new provider, rather than the Fund.

Learn more about drawdown.

What will happen if you want a cash lump sum

If you choose to take all your AVC Extra pot as a cash lump sum (total encashment), the money will be paid directly into your bank account by the Fund. The timescale for receiving this payment may vary and you may want to hold off making any large purchases until the money is in your account.

Learn more about encashment.

What will happen if you want to buy a regular income

Buying a secure, regular income is known as 'annuity'. It is a policy that you buy using money from your Personal Retirement Account (PRA).

Learn more about annuities.

To view your AVC Extra record, use the blue bar at the top of your screen once you've logged in to swtich between your membership records.

You can find more information on the managing my AVC Extra page.