Additional Voluntary Contributions (AVCs) are extra contributions you pay into the Scheme, on top of the regular contributions you and your employer pay in.
You can either make AVCs regularly, or as one-off payments.
AVCs are taken from your wages before tax, which means you get tax relief too.
AVCs can be a way of boosting your savings or making up any shortfall, if there is one, between the pension you will get and the amount of income you need to fund the lifestyle you want when you stop work.
With AVCs, you decide:
- how much you want to contribute (which is tax-free subject to certain limits – see gov.uk for details)
- how you invest your contributions
- when you start and stop the additional contributions
Whether you join an AVC arrangement is up to you, but it may be something you want to consider if you:
- have earnings that don’t count towards your RPS pension, such as bonuses or overtime
- are thinking about taking your benefits early (if you are eligible)
- want to save a bit more towards your future retirement income
If you are a Defined Benefit member, the main AVC arrangement is called BRASS. There is a limit on the amount you can contribute to BRASS in a Scheme year. If you exceed that limit, you could continue to save more with AVC Extra.
If you're an IWDC member you may be able to increase your contributions. If you want to make any changes you should speak to your employer.
Please visit the saving more page for further details.