FREE STANDING ADDITIONAL VOLUNTARY CONTRIBUTIONS

This arrangement is similar to an in-house AVC arrangement but it is not linked to the LGPS in any way. With FSAVCs, you choose a provider, usually an insurance company. You may wish to consider their different charges, alternative investment routes and past performance when you do this. Payments are usually made direct from your bank account. You can often choose which investment route you prefer.

 

The FSAVC provider will claim the basic tax relief from HM Revenue & Customs (HMRC) and credit it to the FSAVC contract. Higher rate tax payers would have to claim tax relief at the higher rate on their annual tax return.

 

You can use your FSAVC fund to provide additional pension or you may be able to take up to 25% of your fund as a tax free lump sum. This may be considerably less than that available from an in house AVC.

 

 

 

You can also pay FSAVCs to provide additional life cover. Your LGPS membership already gives you cover of THREE times your pay if you die in service, but you can increase this or use it to provide additional benefits for your dependants in the event of your death in service. This may be subject to satisfactory completion of a medical questionnaire.