Add. Voluntary Contributions

All Local Government Pension Funds have an in-house Additional Voluntary Scheme (AVC) where you can invest money, deducted directly from your pay, through either of our AVC providers; Prudential or Standard Life. AVC funds should grow as they are invested and will be available later in your life to convert into either an additional pension of your choice, a tax free lump sum or a combination of both.

Note that you are able to contribute up to 100% of your monthly allowance (once all statutory deductions have been made) to your AVC fund. You are also able to update your contribution level as you wish, as well as amend your investment fund choice.

The additional contributions that you choose to make are to be deducted directly from your salary. You can pay a percentage of your allowance or you pay a set amount, either way, you are able to change this amount at any time.

Upon your retirement, you can take some or all of your AVC fund as a tax-free cash lump sum (subject to HMRC limits).

What if I entered into an AVC on or before 31 March 2014?

Your contribution must NOT exceed 50% of your monthly pay (once all statutory deductions have been made).

Additional Life Cover

You can also pay in-house AVCs to provide additional life cover. Your LGPS membership already gives you cover of 2 times your pay if you die in service, but you can increase this or use it to provide additional benefits for your dependants in the event of your death in service.  This may be subject to satisfactory completion of a medical questionnaire.