Paying extra contributions

If you want to pay extra contributions to boost your pension value at retirement, you can set up an additional voluntary contributions, or AVC, contract.

AVCs are long term savings that you can only take at retirement. They’re a flexible way to pay extra contributions because you can increase, decrease, stop or restart them at any time.

Like your standard contributions, AVCs come out of your pay before tax. So, if you are a 20% taxpayer and want to put £100 into your AVC pot each month, you only need to pay £80, as the remaining £20 will come from your tax relief.

You choose how much you want to pay into your AVC pot, and how to invest it with our provider, the Prudential. At retirement you then use it to:

• possibly take all of it as tax free cash, or
• use it to increase your annual pension, or
• take some of it as tax free cash and use the rest to increase your annual pension

If you start taking your pension before normal retirement age, both your main pension and any additional pension you have bought through AVCs will be reduced for early payment.

To set up your AVC, contact the Prudential: www.pru.co.uk/localgov or 0345 6000 343. Tell them you’re a member of LGPS Councillor through the Clwyd Pension Fund and they will help you set up an AVC account linked to the pension you have with us.

If you die in service, your AVC pot will be payable to the beneficiaries on your expression of wish form as an additional death grant. If you have not completed an expression of wish, the death grant will go to your estate.