Extra ways to save

Additional voluntary contributions (AVCs)

AVCs are a flexible, tax efficient way of saving more for your retirement. Once you have set up an AVC policy, you can increase, decrease, stop or restart your contributions depending upon your circumstances.

Download the AVC enrolment form [pdf] Download the AVC amendment form [pdf] Download the AVC lump sum payment form [pdf]

How the money can be used

Your AVC policy can be used in a number of ways, including taking it as a tax-free cash lump sum (subject to limits), or drawing it as a pension.

More detail on the options available to you are available in the AVC booklet offered by the University of York Pension Fund. Hard copies are available on request.

The benefits of contributing

Contributions paid into an AVC policy attract tax relief - meaning that you don't pay tax on the amounts you pay into your policy (subject to limits). This can make the net cost of contributing cheaper for you.

For example, if you chose to pay £75 a month into your AVC policy, the net cost (reduction in pay) to a basic rate tax payer would be only £60 and for a higher rate tax payer would be £45.

The modeller provided is an illustration of what the net cost of contributing to an AVC facility is.

Calculate your net cost

Gross contribution £25.00

id Tax rate Gross contribution Net cost
25 Basic rate tax payer £25.00 £20.00
50 Basic rate tax payer £50.00 £40.00
75 Basic rate tax payer £75.00 £60.00
100 Basic rate tax payer £100.00 £80.00
125 Basic rate tax payer £125.00 £100.00
150 Basic rate tax payer £150.00 £120.00
175 Basic rate tax payer £175.00 £140.00
200 Basic rate tax payer £200.00 £160.00
225 Basic rate tax payer £225.00 £180.00
250 Basic rate tax payer £250.00 £200.00
275 Basic rate tax payer £275.00 £220.00
300 Basic rate tax payer £300.00 £240.00
325 Basic rate tax payer £325.00 £260.00
350 Basic rate tax payer £350.00 £280.00
375 Basic rate tax payer £375.00 £300.00
400 Basic rate tax payer £400.00 £320.00
425 Basic rate tax payer £425.00 £340.00
450 Basic rate tax payer £450.00 £360.00
475 Basic rate tax payer £475.00 £380.00
500 Basic rate tax payer £500.00 £400.00
525 Basic rate tax payer £525.00 £420.00
550 Basic rate tax payer £550.00 £440.00
575 Basic rate tax payer £575.00 £460.00
600 Basic rate tax payer £600.00 £480.00
625 Basic rate tax payer £625.00 £500.00
650 Basic rate tax payer £650.00 £520.00
675 Basic rate tax payer £675.00 £540.00
700 Basic rate tax payer £700.00 £560.00
725 Basic rate tax payer £725.00 £580.00
750 Basic rate tax payer £750.00 £600.00
775 Basic rate tax payer £775.00 £620.00
800 Basic rate tax payer £800.00 £640.00
825 Basic rate tax payer £825.00 £660.00
850 Basic rate tax payer £850.00 £680.00
875 Basic rate tax payer £875.00 £700.00
900 Basic rate tax payer £900.00 £720.00
925 Basic rate tax payer £925.00 £740.00
950 Basic rate tax payer £950.00 £760.00
975 Basic rate tax payer £975.00 £780.00
1000 Basic rate tax payer £1,000.00 £800.00
25 Higher rate tax payer £25.00 £15.00
50 Higher rate tax payer £50.00 £30.00
75 Higher rate tax payer £75.00 £45.00
100 Higher rate tax payer £100.00 £60.00
125 Higher rate tax payer £125.00 £75.00
150 Higher rate tax payer £150.00 £90.00
175 Higher rate tax payer £175.00 £105.00
200 Higher rate tax payer £200.00 £120.00
225 Higher rate tax payer £225.00 £135.00
250 Higher rate tax payer £250.00 £150.00
275 Higher rate tax payer £275.00 £165.00
300 Higher rate tax payer £300.00 £180.00
325 Higher rate tax payer £325.00 £195.00
350 Higher rate tax payer £350.00 £210.00
375 Higher rate tax payer £375.00 £225.00
400 Higher rate tax payer £400.00 £240.00
425 Higher rate tax payer £425.00 £255.00
450 Higher rate tax payer £450.00 £270.00
475 Higher rate tax payer £475.00 £285.00
500 Higher rate tax payer £500.00 £300.00
525 Higher rate tax payer £525.00 £315.00
550 Higher rate tax payer £550.00 £330.00
575 Higher rate tax payer £575.00 £345.00
600 Higher rate tax payer £600.00 £360.00
625 Higher rate tax payer £625.00 £375.00
650 Higher rate tax payer £650.00 £390.00
675 Higher rate tax payer £675.00 £405.00
700 Higher rate tax payer £700.00 £420.00
725 Higher rate tax payer £725.00 £435.00
750 Higher rate tax payer £750.00 £450.00
775 Higher rate tax payer £775.00 £465.00
800 Higher rate tax payer £800.00 £480.00
825 Higher rate tax payer £825.00 £495.00
850 Higher rate tax payer £850.00 £510.00
875 Higher rate tax payer £875.00 £525.00
900 Higher rate tax payer £900.00 £540.00
925 Higher rate tax payer £925.00 £555.00
950 Higher rate tax payer £950.00 £570.00
975 Higher rate tax payer £975.00 £585.00
1000 Higher rate tax payer £1,000.00 £600.00

Disclaimer: The modeller is intended as a guide and offers no guarantees to the effect of tax relief on paying contributions into an AVC policy. If you require a specific calculation based on your own circumstances, please contact the Payroll Office.

Types of funds you can invest in

You choose where you invest and the fact sheets below help give you a better understanding of the options available.

Tax limits on pension saving

Savings that you make to a pension scheme are generally tax free, but there are limits to the amount you can save and draw tax free from a pension scheme. Increasing the amount you save in a pension scheme through AVC's may cause you to be affected by these limits, especially if you choose to pay large amounts or lump sums. It is your responsibility to check that you will not incur any tax charges by choosing to pay AVCs. The Pensions Team cannot do this for you but can provide you with information or calculations of your position. You may wish to take independent financial advice.