We operate an in-house AVC scheme with Prudential in which you can invest your money. If you started taking out an AVC a long time ago, you may have arrangement with a legacy provider.
To find out more and apply:
Prudential AVC Group Plan Website (opens new window)
How does it work
You decide on how much you pay through your salary, and where the money is invested. The money is deducted directly from your pay before your tax.
Taking your benefits
The amount of benefits you'll receive will depend on how much you've contributed and how well your investment has performed. There are a number of options available to you when choosing to take your AVC benefits:
- take the full amount as a tax-free lump sum (as long as your total lump sums from the LGPS do not exceed 25% of the combined value of your benefits including your AVC plan)
- buy additional LGPS pension
- transfer the AVC plan out to a personal pension plan
You cannot take your AVC without taking your LGPS pension at the same time and you cannot contribute just to an AVC without also contributing to the LGPS at the same time.
Advantages of an AVC plan
- flexibility on contributions
- tax efficiency; on what you pay in and potentially receive at the end
- tax-free cash; as long as your total lump sums from the LGPS do not exceed 25% of the combined value of your benefits including your AVC plan
AVC charges
An annual fund management charge will normally apply; these amounts vary depending on which fund you invest in and will be deducted automatically from the value of your fund. Prudential (opens new window) can provide more information on these.
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