How does it work?

Although the AVC arrangement is part of the main ABF Pension Scheme, your AVC savings will be invested separately in the Defined Contribution (DC) section. Your contributions buy ‘units’ in investment funds and the number of units you hold increases every time a contribution is paid.

You can find information on the funds available in the DC section of the website by clicking here.

Does the Company contribute to AVCs?

The Company does not contribute to the AVC arrangements.

Do I get tax relief on the extra contributions?

AVCs generally attract income tax relief at the highest rate you pay. If you are paying tax at a rate of 20%, this means that every £1 you save will only cost you 80p. Please click here for more information on AVC contributions.

What if I leave the Scheme?

On leaving the Scheme, both your regular contributions and AVCs will stop.

If you defer your benefits under the ABF Pension Scheme, then your AVCs will remain invested in the AVC plan, until such a time as you draw your benefits or transfer your total benefits to another pension scheme. You will still have the option to change your investments, should you wish to do so.

If you transfer your main Scheme (DB) benefits, your AVCs must also be transferred.

However, you do not have to wait until you draw your DB benefits to access your AVC benefits. Once you have reached the minimum pension age (currently 55 but increasing to 57 from 6 April 2028) you may take your AVC benefits independently of your DB benefits. As your AVCs are a DC benefit, you also have the same options available to you as other DC section members. You can find more information about these options on the DC section of our website by clicking here.

Where are my AVCs invested?

AVCs are invested in funds through the Mobius Life platform. This is the same platform used by DC section members. However, if you joined the AVC Plan before October 2004, you may still have investments in one or more of the legacy AVC arrangements with Clerical Medical, Standard Life, Phoenix Life or Prudential. From 1 April 2023, members are no longer able to make any further contributions to the legacy AVC arrangements. Instead, the range of funds on the Mobius Life platform will remain available for members to invest their future AVCs in. For more information on starting or changing AVCs, please click here.

What happens to my AVCs if I die before retirement?

The Trustee will pay to your beneficiaries the fund value of your AVCs together with the death benefits from the ABF Pension Scheme. For more information on death benefits and how to nominate your beneficiaries, please click here.