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The Superannuation Arrangements of the University of London |
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Active Members ► Additional Voluntary Contributions
Additional Voluntary Contributions (AVCs) are extra payments active members can make to increase their benefits. In SAUL AVCs buy Additional Pension. AVCs can be paid as a lump sum or through a monthly contract. The Trustee will invest your AVC payments in the main SAUL fund. Once you have agreed an AVC contract with SAUL, your Additional Pension is guaranteed as long as you make the contracted payments. You can increase, reduce or cancel your Additional Pension AVC payments at any time. AVCs are deducted from pay before your tax is calculated so you pay less tax. Our Additional Pension Calculator provides an estimate of the benefits you could purchase by paying AVCs each month. |
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Quick Links |
What do I get in exchange for my AVCs? What happens if I stop paying them before the end of the contract? I'm paying monthly AVCs which buy extra Pensionable Service rather than Additional Pension
Whether you work full-time or part-time, if you can answer ‘yes’ to any of the following questions, you may want to think about paying Additional Voluntary Contributions (AVCs).
You will not pay tax on regular AVC payments and you can claim tax relief on any lump sum AVC payment you make.
What do I get in exchange for my AVCs? You will receive an Additional Pension for life which is a fixed amount payable from your Normal Pension Date. Members can buy up to 21 units of pension. At Normal Pension Date each unit is worth a pension of £250 a year (payable for life) and a tax-free lump sum of £750. Once a pension is paid the units purchased will increase in the same way as the rest of your pension. If you retire before Normal Pension Date your Additional Pension will be reduced for early payment.
You can pay up to 100% of Salary into SAUL – including your normal contributions, AVCs for extra Pensionable Service and Additional Pension. The maximum amount of Additional Pension that can be bought by SAUL members is 21 units.
You can make a lump sum payment or pay regular amounts from your pay in a monthly contract for between three and 10 years. You pay a fixed contribution for the lifetime of the monthly contract. You can ask your Pensions Officer for a quotation based upon how much you would like to pay or how many units of pension you would like to purchase. Alternatively our Additional Pension Calculator can give you an estimate of the Additional Pension you could purchase with a monthly AVC contract. If you would like to pay AVCs, please contact your Pensions Officer.
What happens if I stop paying monthly AVCs before the end of the contract? If you leave SAUL or decide to stop paying AVCs before the end of your AVC contract, the Additional Pension built up will be based upon the payments actually made. If you retire due to ill-health and your AVC contract has been in place for two or more years, or you die in service, the full contract will be honoured as though all the required payments had been made.
I'm paying monthly AVCs which buy extra Pensionable Service rather than Additional Pension Prior to 1 April 2012 members could pay AVCs of up to 10% of Salary (on top of normal contributions) to buy extra Pensionable Service in SAUL. If you had a monthly AVC contract to buy extra Pensionable Service in place at 1 April 2012 , your contract can be continued, reduced or stopped but not increased. If you would like to reduce your monthly contract our AVC Calculator can give you an estimate of the revised Pensionable Service you can purchase. If you leave SAUL or decide to stop paying AVCs before the end of your AVC contract, the Pensionable Service built up will be based upon the payments actually made. If you retire due to ill-health and your AVC contract has been in place for two or more years, or you die in service, the full contract will be honoured as though all the required payments had been made. |
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