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Adding an additional voluntary pension contribution
Adding an additional voluntary pension contribution
Rebecca Russell avatar
Written by Rebecca Russell
Updated over a week ago

An Additional Voluntary Contribution (AVC) pension is a way for an employee to make additional flexible contributions to their workplace pension. An AVC allows employees to make further contributions to potentially build up additional retirement benefits.

When would you use an AVC?

AVCs can be used for many reasons, including:

  • An employee wants to make a one-off enhanced contribution (e.g., paying a bonus straight into their pension).

  • Making up for a missed payment in the past by adding an AVC in the current month.

Please note that an AVC counts towards the employee's pension annual allowance so they should consider this before contributing large values.

How to add an AVC

  1. From the employee's record, click the Employment tab.

  2. Under the Pension contributions section, click Additional Voluntary Contribution.

  3. Click Add a new AVC.

  4. Enter a date for the deduction to begin.

  5. Choose whether the AVC is a Fixed amount, or a Percentage.

  6. Enter the amount or percentage.

  7. Choose whether it should be deducted as a One off, or on a Monthly basis.

  8. Click Save.

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