In Reply to: Protect your Equitable Life AVC fund by ... posted by Deborah Young on 19 August 2002 at 15:51:43:
: I'm trying to find out from IBM what's possible.
Deborah,
Before pursuing this line you should look very carefully again at the the other option of taking all of your pension now, even if you continue to work and assuming as appears that you are over 50. There are good reasons why you shouldn't take a pension now - the main one being that it would CURRENTLY be lower than if you deffered - but there could be several other good reasons why some consideration for taking your full IBM pension now rather than wait.
1. Firstly, getting you Equitable Life AVC fund out of EL is felt by many to be an astute move. So if you cannot get IBM to agree to your plan you should think carefully about your AVC fund, give full consideration to it's size and the risk on leaving it with EL.
2. Depending on when that went in to EL you may find that it is an ex-GAR policy and was uplifted by the recent vote - then to be reduced by the latest MVA's (Market Value Adjustments). When I last checked IBM's Annuity Rate on them receiving back the AVC, it is very generous and way above normal market rates. Woman have a better deal as the rates for men and women were the same whereas other companies differentiate and give lower rates to women as they live longer. And you may be able to increase it by forgoing a spouse pension depending on any position a spouse may have. A delay over time may cause the annuity rates offered by IBM to harden against you so that any gain made by defering is lost by the lower rates offered.
3. Becoming a pensioner now may give you greater security if the scheme is ever heaven forbid wound up as existing pensioners are currently seen as "preferential".
These are some factors that may give you food for thought.
G.