CORNMARKET – New Administrators of the TUI AVC Scheme
As of September 1st 2011, Cornmarket are the newly appointed administrators of the TUI AVC Scheme following the recent tendering of the Scheme. This is good news for members as Cornmarket are committed to providing you with a quality service and excellent benefits throughout the lifetime of your AVC and the years beyond it.
What is an AVC?
An Additional Voluntary Contribution (AVC) does what the name implies; it provides you with a way to make additional contributions towards your retirement benefits. At retirement you're free, subject to the relevant Revenue rules, to use your AVC Investment Account to buy the retirement benefits you want.
How does an AVC work?
Over the years to retirement your AVC contributions accumulate in your AVC Investment Account together with any returns made by the funds in which your contributions are invested. No tax is due on the investment returns earned in your AVC Investment Account (however, you may be subject to income tax and USC on any amount of your AVC which cannot be taken as tax free cash on retirement). During this time your contributions qualify for income tax relief. In fact you could get back €41* for every €100 you invest in your AVC plan (subject to Revenue limits).
*Example based on paying 41% tax.
Reduction in charges
As part of the tendering process Cornmarket and the TUI AVC Trustees secured a significant reduction in the two core charges levied by the insurance companies. The majority of members will see their contribution charge fall by almost 25% to only 3.75% from the 1st September 2011. The Annual Management Charge levied has, in the majority of cases, been reduced to:
• 1% on the first €40,000
• 0.75% on the next €100,000 of fund
• 0.50% on any amount over €140,000
At present the insurance companies are carrying out an analysis of members’ charges. Where it makes financial sense, you will be moved to a new contract or an alternative structure, which will give you better value or lower charges. Once the insurance companies have carried out their analysis, further details will be made available.
As the newly appointed administrators, Cornmarket are committed to providing you with a first-in-class service. They have an experienced Customer Service team, which can be contacted Monday to Friday 09:00 – 17:30. Cornmarket also provides a service that not only will look at your AVC but will also look at your overall financial situation. This would be done in the form of a Financial Health Check (FHC) in the privacy of your home or in your workplace; whichever suits you best. The service also provides you with a Personalised Illustration taking into account your Superannuation service and any resulting pension/lump sum entitlements etc.
As well as the above, Cornmarket will provide you with regular updates to ensure you are fully informed about any issues that concern you through the lifetime of your AVC and the years beyond it.
Should you have a general query on your AVC please call Cornmarket’s Customer Service team on (01) 408 4050. If you wish to arrange a meeting please call (01) 408 4025 and they will be happy to arrange this for you.
TUI members close to retirement
For those members who have decided to retire before February 2012 it is vital that you meet with one of Cornmarket’s Retirement Consultants as soon as possible. He/she can assess your current situation and advise you on how to make the best out of your finances before and in retirement. To set up your complimentary appointment, call: (01) 408 4058 or click here.
Existing AVC members
To update your contact details so Cornmarket can make future correspondence with you - Please click here
Existing TUI Public Sector PRSA clients
Over the course of the coming months Cornmarket will also write to TUI members who currently hold a Public Sector PRSA regarding your options and whether it makes sense to switch to the TUI AVC Scheme which now has more preferential charges.
Warning: The value of your investment may go down as well as up.
Cornmarket Group Financial Services Ltd. is regulated by the Central Bank of Ireland. A member of the Irish Life & Permanent Group. Irish Life & Permanent plc is regulated by the Central Bank of Ireland. Irish Life Assurance plc is regulated by the Central Bank of Ireland. Friends First Life Assurance is regulated by the Central Bank of Ireland. Telephone calls may be recorded for quality control and training purposes.