Additional Voluntary Contributions (AVCs)
If you wish to top-up your main SCPF pension, you can choose to pay extra contributions on a voluntary basis. You decide how much you would like to pay and where you would like your AVCs invested.
Your AVC fund builds separately from your SCPF pension to give you additional lump sum and or pension benefits when you retire. The size of your AVC fund depends on the contributions paid and how well your chosen investments perform. Full details of the SCPF AVC arrangement can be found in the AVC explanatory booklet.
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What are AVCs?
AVCs are a defined contribution type of pension arrangement used to build up additional pension benefits. The value at retirement will depend on the length of time the AVCs were invested and investment growth. Your Employing Company makes no contribution towards your AVC fund.
Should I pay AVCs?
The SCPF already provides you with a pension based on your Pensionable Service and Final Pensionable Salary. However, if you would like to save more for retirement and boost your SCPF pension, you can pay AVCs if you wish.
AVCs are tax efficient in the same way as the SCPF, in so far as you receive tax relief at the highest rate of tax you pay on the contributions you make. The decision to pay AVCs is yours, and you are recommended to take independent financial advice to help you decide. The maximum value of pension benefits that you can build up in a year without incurring a tax charge is restricted by the Annual Allowance.
How much can I pay?
You can make monthly AVCs of up to 75% of your gross monthly pay. You can also choose to make one-off AVC payments e.g. if you receive a bonus. Your contributions are deducted from your pay before tax is calculated.
How do I start paying AVCs?
If you would like to start paying AVCs please complete the AVC Instruction Form together with an Investment Instruction form and return them to the Pensions Administration Team.
Can I change or stop the amount of AVCs I am paying?
AVCs are flexible. You can decide to pay more or less or stop your AVCs at any time by completing a new Contribution Instruction Form. The Contribution Instruction Forms need to be sent to the Pension Administration Team by the beginning of the month that your change in contributions will be made e.g. for deductions to be made from your October pay, the Pension Administration Team must receive your Contribution Instruction Form by 1 October.
How soon can I start AVCs?
You can start paying AVCs at any time. The Pension Administration Team needs to receive your completed Contribution Instruction Form and Investment Decision form at the beginning of the month from which deductions from your pay will be made.
Can I pay AVCs if I have left Shell?
No, you can only pay AVCs whilst you are an active member of the SCPF. However, you can continue to select from the range of investment choices offered, until you draw your benefits, using Legal & General’s online facility Manage Your Account.
