Additional Voluntary Contributions (AVCs)
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Additional Voluntary Contributions
A member can pay in-house Additional Voluntary Contributions to Prudential, to build up a pot of money which is then used to provide additional benefits, in addition to their LGPS benefits.
The contributions are deducted directly from the member's pay and are invested in their own personal defined contribution account. The member can decide how the money in their pot is to be invested.
The member can elect to pay an AVC if they are in either the main or 50/50 section of the LGPS.
The member can pay up to 100% of their pensionable pay into the in-house AVC. You can also pay towards the member's AVC at your discretion; this is known as a Shared Cost AVC.
Commencing an AVC
The member can commence paying in-house AVCs to Prudential, by applying through their website.
Once the application has been completed, Prudential will notify you of the amount of contributions that will need to be deducted and the payment instructions for sending the contributions to them.
You must notify Surrey Pension Fund of the amount of the contributions via i-Connect or within the Annual Return at the end of the financial year.
Amending an AVC
The member can amend their in-house AVCs paid to Prudential through the Prudential website.
Once the contract has been amended, Prudential will notify you of the revised amount of contributions that will need to be deducted and the applicable date.
If the member has an existing in-house AVC with another supplier, then they must contact the crtpensions@surreycc.gov.uk to make any amendments to their AVC contract.