An AVC is a tax efficient, optional payment you can make to enhance your retirement benefits and give you greater options at retirement.
As an employee of the Civil Service; Public Sector, Health Service, Voluntary Hospitals and State Related Agencies, you can join a Group AVC Plan, which offers the added convenience of deductions coming straight from your earnings.
Group AVC – Benefits For You
- Tax Relief - You can claim up to 41%* tax relief on your contributions to your AVC Plan.
- Tax Free Growth**: Under current legislation, the fund in which your contributions are invested benefits from tax free growth, unlike most other saving methods which are liable for tax.
- Tax Free Lump Sum: A portion of your fund may be taken as a tax free lump sum at retirement, subject to Revenue rules.
- Enhanced Pension - Give yourself a total pension of up to 2/3rd's of final salary (exclusive of the State Pension).
- Flexibility - Save what you can afford to, knowing you can change the amount of your contributions at any time, to suit your personal circumstances.
- Retire Early - Plan for early retirement (from age 50)***.
Please note that before you decide to commencemaking AVCs it is important to consider whether you can purchase 'added years'. Further information on 'added years' can be obtained from your HR department.
* Assuming you are a higher rate tax payer. Tax Relief is not automatically granted and you must apply to the Revenue and satisfy their requirements.
**A temporary Government pension fund levy of 0.6% per annum will be applied to the value of the pension assets for the four years 2011 – 2014.
***Revenue limits terms and conditions apply. Employer’s consent will also be needed.