I would like to know more about Additional Voluntary Contributions (AVCs)

One of the ways in which a member can 'top-up' their retirement benefits is by paying into an Additional Voluntary Contribution (AVC) scheme. These are a tax efficient and simple way to increase your pension on retirement. However, there are other ways to increase your benefits and it may also be worth discussing your situation with an independent financial adviser (IFA), as we are unable to advise you on what is best for you. You can find an IFA in your area.

You can pay up to 100% of your net basic salary (after tax and deductions – including normal pension contributions) as AVCs. Your contributions must be paid via a deduction through the University payroll.

Members can contribute to the Scheme’s money purchase arrangements with selected providers. Benefits from money purchase arrangements are dependent on the amount of contributions paid, how well the investments perform and the final value of the fund at retirement. At retirement, the cash value of the fund will be used to purchase an annuity (pension contract) with an insurance company. The amount of pension you receive will depend on the annuity rates in force at the time.

Alternatively, the value of your AVC account can be taken as a tax-free cash lump sum (or a combination of pension and cash) within certain limits set out in legislation. The maximum amount of cash you can receive is 25% of the capital value of your total Scheme benefits.

You can obtain further details on the AVC providers and contributions from the Forms pages of this site website, or directly from the Pensions Office.

 

Need help or more information?

Who to contact
If you have any queries then please contact the Pensions Office.