West Yorkshire Pension Fund member website

Main content

Active - paying extra
Additional Voluntary Contributions – AVCs

AVCs

With AVCs you pay extra contributions into our AVC plan. Our AVCs providers are Prudential and Scottish Widows.

The benefits

  • AVCs don't buy an amount of pension but build up a fund value which you can then use to buy benefits at retirement.
  • You can take up to 100% of your AVC fund as a lump sum *(the government has announced it plans to make changes to how defined contribution pension pots can be paid but we don’t know if this will include AVCs).
  • You can choose the benefits that you purchase at the time of your retirement such as whether a spouse’s pension is payable and whether your pension increases in line with inflation or not.

*Subject to HMRC limits

What if I die – is there any extra death cover?

No – but if you die, the pension pot you have built up will be paid out as a death grant.
Please note that it may be possible to pay AVCs to buy life cover only – Prudential offers this, and if you are interested, you should contact them about it.

Flexible payments and investment options

  • You choose how much you want to pay each pay period.
  • Contributions are flexible
  • The amount you pay in and the investment option you choose will affect the amount you build up in your pension pot.
  • If you pay tax, deductions taken from your salary will receive automatic tax relief.

Our AVC providers, – Prudential and Scottish Widows,. Offer a range of investment funds for you to choose from. AVCs are a form of investment and so there are no guarantees, the value of your fund could go down as well as up. Administration charges applied to your AVC fund - and your provider will tell you what the charges are.

If you stop paying or leave employment

  • You can stop paying AVC contributions at any time by contacting your AVC provider. The AVC fund you've built up will continue to rise and fall with the fluctuation in investment returns.
  • If you retire because of ill health from active employment you won't receive any enhancement to your AVC fund.
  • If you leave before your LGPS benefits are payable your AVC fund will remain invested. You'll be able to use your AVC fund to get additional pension benefits when the rest of your benefits are paid.
  • If at the time you leave employment you are only entitled to a refund of your contributions, your AVC fund will also be refunded.

If you're interested, this is what you need to do:

  • For more information about our AVC plans, contact the AVC provider of your choice (see below)

If you want to go ahead:

  • Complete the relevant application form (you will need to decide which investment fund best suits your attitude to risk and – you should review this regularly)

What will happen then?

  • Your chosen AVC provider will contact your employer to arrange AVC deductions from your pay.

Who to contact for more information about our AVC plans

West Yorkshire members

Prudential

Freephone 0800 032 6674

Prudential LGPS website


Online joining and topping up

Prudential’s new AVC website means you can now either start or increase your additional voluntary contributions (AVCs) online at any time, though you can still phone Prudential if you prefer to do it that way.

Email: wypf@prudential.co.uk

Scottish Widows

Phone: 0345 733 0805 (new applications) or 0345 716 6777 (existing policy)

For further information go to the Scottish Widows WYPF microsite

Lincolnshire members

Prudential

Freephone 0800 032 6674

Prudential LGPS website


Online joining and topping up

Prudential’s new AVC website means you can now either start or increase your additional voluntary contributions (AVCs) online at any time, though you can still phone Prudential if you prefer to do it that way.

Email: wypf@prudential.co.uk