AVCs are deducted from pay in the same way as your standard pension contributions and invested with Standard Life. AVCs can be used to purchase additional benefits in the Plan, except that no part of your AVC account can be taken as a cash lump sum.
The total of your AVC and normal Plan contributions, must not exceed 15% of your PAYE earnings, including any taxable benefits, in any tax year. AVCs qualify for tax relief in the same way as normal contributions to the Plan, making them an attractive form of investment. AVCs must cease when you stop making ordinary contributions to the Plan and will be dealt with at the same time as your Plan benefits are paid.
At retirement, the benefits from your AVCs will be added to your other Plan benefits, together with any preserved benefits from previous employers’ pension schemes and Personal Pensions, to ensure that the Inland Revenue’s limits on maximum benefits are not exceeded. If they are, the excess AVCs may be refunded after deduction of tax.
As an alternative, you may pay AVCs to an external pension provider (these are known as Free Standing AVCs - “FSAVCs”) subject to similar conditions. If you would like more information about this option, please contact your financial adviser.
If you are interested in paying AVCs to the Plan and would like to find out more about the investment opportunities please click on Investment.
If you would make an application to pay AVCs to the Plan, please click on the following links to to download an application and investment instruction form.