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 re-start your contributions depending upon your circumstances.
Download the AVC enrolment form [pdf] Download the AVC amendment 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.
Greater 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.
The modeller provided is an illustration of what the net cost of contributing to an AVC facility is.
| 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.