AVCs

If you want to boost your pension, you can choose to pay Additional Voluntary Contributions (AVCs). This is a defined contribution or money purchase method of retirement saving.

AVCs give you flexibility over how much you save and how your savings are invested. They are available to all Scheme members.

  • You can choose the amount you pay
  • You can make changes to how much you pay
  • You choose how to invest your AVCs from a range of funds with Mobius Life
  • You qualify for tax relief on your AVCs at your highest rate
  • AVCs are deducted directly from your salary so you don’t need to arrange a separate payment
  • If you pay your Scheme contributions through SMART, your AVCs will also be paid through SMART, increasing the savings you make on National Insurance
  • You can use the net pay calculator to see how much paying AVCs would affect your take home pay.

Investment charges are levied on your AVCs each year, which relate to services such as investment advice, administration and asset management.  They vary with the fund you select and apply as a percentage of the value invested in the fund.  Details of the fund charges are contained within the AVC Guide attached below.

Tax relief

There are limits on the amount of tax relief you’re allowed on your pension savings, both annually and over the course of your lifetime. Please see the Annual Allowance and Lifetime Allowance factsheets for more information on the current HMRC allowances.

How much will I need?