Increasing Your Pension Benefits Oct 2018 | Page 10

What if I choose to retire after
Normal Pension Age?
Like your scheme pension, your additional pension
will be actuarially increased. How can I get more details about
AVCs?
Will the contributions alter if I start
to work part-time? The first step is to contact one of SYPA’s providers:
Prudential- Tel: [phone]
Scottish Widows- Tel: [phone]
If you choose to pay AVCs under the LGPS, the
AVCs are invested separately in funds managed
by Prudential or Scottish Widows. You have your
own personal account that, over time, builds up
with your contributions and the returns on your
investment which are free of capital gains tax.
No, you will be required to pay the same amount
of contributions as you did when you worked full-
time.
Will the payments stay the same
throughout the contract period?
Regular contributions are the same amount each
month and are not indexed linked. However,
contributions are subject to change in the future
upon review by the Government Actuary’s
Department. Any revision to rates would apply
to any additional pension contracts that still
had contributions outstanding at the time of the
revision. The revised contributions would take
effect for existing contracts on 1 April following the
revision.
Will my additional pension
receive increases each year like
my scheme pension?
Yes, your additional pension will be subject to
annual increases, both before and after the
additional pension comes into payment. The
additional pension is increased from the first
contribution payment, in line with inflation.
8
Pay Additional Voluntary
Contributions (AVCs)
SouthYorkshirePensionsAuthority
You may be offered a range of AVC investment
routes. For example, you may be able to invest
your contributions in a ‘with-profits’ fund, a ‘unit-
linked’ fund, a ‘deposit’ fund, an ‘ethical’ fund, a
‘lifestyle’ fund, an index ‘tracker’ fund etc. or a
combination of funds. It is for you to choose which
fund, or combination of funds, you wish to have
your contributions invested in. Your decision is
likely to be influenced by factors such as your
attitude to investment risk and how close you are
to retirement.
An election to pay AVCs must be made in writing to
Prudential/Scottish Widows. Payments start from
the next available pay day after your election has
been accepted. You may vary or stop payment at
any time whilst you are contributing to the LGPS.
AVCs are deducted direct from your pay and the
tax relief (at your highest rate) is automatically
given through the payroll. This means that tax is
calculated on your pay after your pension and AVC
contributions have been deducted.
SouthYorkshirePensionsAuthority
9