AVCs

Additional Voluntary Contributions (AVCs) are personal contributions that were previously made to the Plan by some members. The AVCs sit alongside the standard DB Section benefits and are designed to provide extra benefits at retirement. 

When Plan benefits are put into payment, members have a right (subject to meeting certain conditions) to take up to 25% of the value of their benefits as a tax-free cash lump sum. This is known as a Pension Commencement Lump Sum (PCLS). 

Members who hold AVCs through the Plan have the option to use these to fund some or all of their PCLS. This means they need to commute (or exchange) less of their DB Section benefits, leaving more to be taken as a pension. 

If you hold AVCs through the Plan and would like more information on these and the options you have when you come to take your benefits, please contact XPS.