The past, present and future of Additional Voluntary Contributions

It is already possible for pension scheme members to top up their contributions via AVCs or FSAVCs, and post A-Day the opportunities to do this should become even more flexible

Additional voluntary contribution (AVC) arrangements have always been popular with those individuals wishing to bolster their pension benefits. This may be for a variety of reasons, including the opportunity to increase benefits to the Revenue & Customs maximum or funding for early retirement. Initially, in house AVC arrangements - schemes offered to run alongside the main pension scheme - were optional, but now for almost 20 years all occupational schemes have had to offer an in-house arrangement. There has also been the free standing alternative. From A-Day, new rules will apply providing...