The Prudential has revealed plans to impose early-exit penalties on Local Government Pension Scheme members who withdraw funds within five years of making additional voluntary contributions (AVCs).

Penalties are due to come into operation from August, and will impose a sliding scale of charges – with a 15% charge on funds withdrawn in the first year, 10% in the second, 8% in the third, 6% in the fourth and 5% in the fifth.