- How do Additional Voluntary Contributions (AVCs) work?
- Benefits of paying AVCs with Standard Life
- Applying for AVCs
- Changing your AVC
- What happens to my AVC fund if I leave the Cornwall Pension Fund before retirement?
- What if I have an AVC with another pension provider - can I transfer this into my Cornwall Pension Fund?
- What if I die before drawing my benefits?
How do Additional Voluntary Contributions (AVCs) work?
- Your AVCs are invested separately into our in house AVC provider - Standard Life. You will have your own personal account with Standard Life
- You decide how much extra you wish to pay (up to the maximum of 100% of your pensionable pay) allowing for statutory deductions (LGPS contributions, NI contributions, etc.)
- AVCs are deducted from your pay, along with your usual monthly pension contributions
Benefits of paying AVCs with Standard Life
- You can pay AVCs to provide you with extra pension at retirement
- You can pay AVCs to provide extra benefits for your dependants
- You may also pay AVCs in order to increase lump sum death benefits
- You can take some or all of your AVC fund as a tax-free cash lump sum but you can only take it all as a lump sum if you draw it at the same time as your main LGPS benefits
- If you are a tax payer, you will attract tax relief on your AVC contributions
- At retirement the AVC fund can be used to buy an annuity (pension) from an insurance company, bank or building society or to purchase a top up pension from the Cornwall Pension Fund
- If you started paying AVCs before November 2001 and you elected to buy additional Cornwall Pension Fund service with your AVC, you automatically buy additional dependants benefits and an inflation proofed pension.
From June 2022, in accordance with the pension regulations, the Fund will offer to book you an appointment with Pension Wise if:
- You are taking your AVCs
- You are transferring them to another defined contribution arrangement, if aged 50 or over
Applying for AVCs
If you would like your employer to arrange your Group AVC Plan with Standard Life, please fill out the relevant application form below and return it to the Member Support Team, details below. Group Additional Voluntary Contributions application forms:
Changing your AVC
If you would like to change your payments or investment options for your existing Group AVC Plan, please use the relevant change form:
What happens to my AVC fund if I leave the Cornwall Pension Fund before retirement?
If you leave the Cornwall Pension Fund, your additional voluntary contribution (AVC) will be preserved within the fund along side your main scheme benefits. If you elect to transfer your benefits to another scheme, your AVC will transfer into your new pension provider's AVC fund.
What if I have an AVC with another pension provider - can I transfer this into my Cornwall Pension Fund?
If you wish to investigate the possibility of a transfer you must:
- complete a pension history form within 12 months of joining the Fund
If you previously paid AVCs into a personal pension scheme or an occupational pension scheme with another organisation (non LGPS) and you elect to transfer these AVCs:
- this will buy you additional benefits in the Fund.
But if you wish to transfer in an AVC you already have with a previous Local Government Pension Scheme:
- this will be invested with the AVC provider for the Fund, currently Standard Life.
For more information on transfer processes you may wish to view can I transfer in?
What if I die before drawing my benefits?
If you die before drawing your benefits, your additional voluntary contribution (AVC) fund accrued up to the date of your death, will be paid along side the death grant.
A guide to AVCs in the Local Government Pension Scheme
Factsheets
To find out more information on Standard Life's AVCs and your portfolio choices see the factsheets below:
- Deposit And Treasury Pension Fund
- Ethical Pension Fund
- Managed Pension Fund
- MM Lifestyle 6 Pension Fund
- Money Market Pension Fund
- With Profits
