Is this considered an "opt out" in regards to DB advice?

Hi all,

We have a client who is a USS pension scheme member.

They have membership in both the final salary section (now closed) and the Retirement Income Builder section. They also have an element of Investment Builder which isn't currently being contributed to.

At present, they contribute AVCs to buying additional years in the final salary section (12% of salary). We've ascertained that it looks like poor value given the salary they are currently receiving is much higher than the final salary they had as at 31 March 2016.

If we recommend that the AVCs are redirected away from the final salary section (which once done, can't be reversed), to the investment builder instead to raise the level of PCLS they can potentially take, is this considered an "opt out" as far as the FCA and COBs is concerned? Or does it not apply to AVCs in this case? For clarity, we are not recommending any contribution to the Retirement Income Builder is ceased, it's just the AVCs to the closed final salary section.


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