Additional Voluntary Contributions (AVCs) are extra pension contributions that you can make to boost your pension savings. 

You may choose to pay AVCs to because:

• you want your pension to start before your scheme’s Normal Pension Age.
• you want to increase the pension payable at your Normal Pension Age (or earlier if you decide).
• full tax relief is given on AVCs. 

You should always consider the needs and the savings options which are best suited to your circumstances. You may wish to discuss the options available with a financial adviser as we are unable to offer you financial advice.

Your employer can let you know if they have set up an AVC arrangement for you to pay into and which scheme this is. Your AVC’s could be paid into one of the following TPT Retirement Solutions' defined contribution (DC) funds:

• The Growth Plan Series 4
• Ethical Fund
• Flexible Retirement Plan
• SHAPS Defined Contribution (DC) (only available to SHAPS employees)
• SHPS Defined Contribution  (DC) (only available to SHPS employees)

If you would like more information on the funds please go to our scheme pages.

How to pay Additional Voluntary Contributions (AVCs)

You can start to pay AVCs by filling in an AVC Application Form for the scheme that you want to pay contributions into and then handing this to your payroll department. Your employer will then complete the employer sections of the form and pass it to us so that we can update your record.

You will receive confirmation from us once your form has been processed. 

AVCs which are paid monthly to TPT Retirement Solutions will be deducted from your salary in the same way as your ‘normal’ monthly pension contributions. If you prefer, you can pay your AVCs as a lump sum instead of regular monthly payments. Lump sum payments must be made through your employer's payroll so you will need to let your HR or payroll officer know in plenty of time.  We are not able to accept personal cheques.

Making changes to AVC’s

To make changes to the amount of AVC’s that you pay or to stop paying them, you just need to let your payroll team know. They will change your monthly contributions and also tell us of the change.

Amounts you can pay as Additional Voluntary Contributions (AVCs)

You can pay up to 100% of your taxable pay/benefits in any tax year (6 April – 5 April) as pension contributions. For example if your normal monthly contribution is 6%, you will have the choice to pay a further 94% of your earnings as tax free AVCs. 

These contributions will be tax free as long as the total increase in your benefits in any one tax year does not exceed the Annual Allowance.

This limit includes your ‘normal’ monthly scheme contributions plus any AVCs that you pay to the scheme plus any Free Standing AVCs (FSAVCs) or contributions to other pension arrangements.

If you would like any further information about AVC’s or Annual Allowance, please do not hesitate to contact us. 

If you are a deferred member (either you have left the scheme or your employment) then Benefit Statements are no longer automatically issued to you. You can request one in your DB Online account or contact us and we can provide one free statement per year.

If you are an Active or Paid up member an annual benefit statement is produced for you each year. These are uploaded to your DB Online account for you to view. An e-mail will be sent when this is available. If you are struggling to get into your DB Online account please contact us so that we can help you.

If you have paid into a Defined Contribution scheme you can manage and track your pension fund in your online DC account. If you do not have access you can request a fund value update or arrange access at any time by contacting us. 

If you’re a member of one of our Defined Benefit or Hybrid (combined defined benefit and defined contribution) schemes, you will have been given access to our secure online facility, DB Online. Login at any time to view your benefits, update personal information, request quotations and more. If you do not have access then please contact us and we will arrange for another secure login and password to be sent to you.

If you are old enough you could take a pension and/or a cash lump sum. The options that your scheme provides on retirement can be found in your member guide that you may want to look at.

When you sign into DB Online (if you are a member of a Defined Benefit scheme) or your online DC Account (if you are a member of a Defined Contribution scheme) you will be able to request a quote of your benefits. If you can retire, the options open to you will be included in the information that we’ll send to you.

Active Scheme Members

If you are currently contributing into the scheme and want to retire you need to let your employer know. They then send us a withdrawal form confirming your date of retirement.

When we have received your withdrawal form from your employer we send you options for your retirement.

Deferred Scheme Members

When you choose to retire you can contact us with the date you want to retire and we will send options to you.

Advice

You may want to receive financial advice before taking your benefits, but be aware that there may be a charge for the time and expertise which is required. We have set out below some links to the government service (Pension Wise) and a site which allows you to search for independent financial advisors in your area.

• www.pensionwise.gov.uk
• www.unbiased.co.uk

The choice of an Independent Financial Adviser is yours alone. TPT Retirement Solutions does not make recommendations about which Independent Financial Adviser you should use, and can accept no responsibility or liability for any advice which they may give.

We  offer a service where your details can be given to the TPT Pension Decision Team who can help you. This service is not free and may not necessarily meet your needs, but if you would like details please let us know as soon as possible.

If you need more information please contact us.  

If there is medical evidence that you are unable to work again in any capacity then your pension may be paid immediately, no matter how old you are.

If you sign into DB Online (if you are a member of a Defined Benefit scheme) / DC Account (if you are a member of a Defined Contribution scheme) you will be able to request information on your eligibility for ill health early retirement. If you do not use DB Online or ​DC Account you can contact us directly.

Defined Benefit Scheme Members

If your application is approved there will be no reduction applied to your pension benefits for early payment and you still have the option to take a tax-free lump sum.

If your application for ill health early retirement is approved we may need to periodically request updated medical evidence to ensure that you are still able to receive this benefit. If your circumstances change we could reduce or suspend your pension.

If you wish to see how your pension would be calculated if you retired on ill health you may wish to look at your member guide. 

Serious Ill Health (Life expectancy less than 12 months) - If your life expectancy is less than 12 months you could take your benefits as a one off payment which is tax free. We would need evidence from a medical professional to confirm your life expectancy.

Defined Contribution Scheme Members

If your application is approved the current fund value would be paid to you no matter how old you are.

If you forget your password, you can reset it by clicking 'Forgotten Password' on the DB Online login page and following the simple instructions given.

When you leave your employer or if you choose to leave the scheme while you are still employed, you will no longer pay contributions into the scheme. Your employer will let us know the date you left the scheme and send us your final contribution. We will then write to you with full details of your options.

Depending on your age and how long you were in the scheme there will be different options available to you:

Becoming a deferred member of the scheme

You can leave your benefits in the scheme and become a deferred member. 

Information on how long you can delay taking your benefits can be found by following this link: How long can I delay taking my pension?

Defined Benefit Scheme Members

Your benefits can increase over time between leaving and retiring depending on your scheme and how long you were in this scheme. 

Defined Contribution Scheme Members

Your funds will be invested until you retire or transfer to another pension arrangement. If you wish to see how your benefits may increase or how they are invested you may wish to look at your member guide or our investments page.

Taking your benefits at retirement

If you are old enough you could take a pension and/or a cash lump sum. The options that your scheme provides on retirement can be found in your member guide that you may want to look at. 

When you sign into DB Online (if you are a member of a Defined Benefit scheme) or your online DC Account (if you are a member of a Defined Contribution scheme) you will be able to request a quote of your benefits. If you can retire, the options open to you will be included in the information that we’ll send to you.

Leaving because of ill health 

If you are leaving employment for ill health reasons then you may be able to apply to have your benefits paid early.

Information on ill health early retirement can be found using the following link: What do I do if I am too ill to work?

Refund of contributions

You may be able to take a refund of your contributions if you were not in a salary sacrifice scheme or have less than two years’ service in the scheme. (Service includes any service from other memberships you have with us and any transferred service from another pension into the scheme.)

If you can have a refund of contributions this will be included in the information that we’ll send to you.

You can find out more about taking a refund of contributions using the following link: Can I take a refund of contributions?

Transferring benefits

After you leave the scheme you may want to transfer your benefits to another suitable pension provider. You can find more information on transferring your benefits using the following link: Can I transfer my benefits?

Internal transfer

If you join a new employer within 30 days of leaving your previous employer and your new employer offers a scheme we administer then you may be able claim continuous service under the scheme.

You can find out more about whether you would be able to claim continuous service using the following link: Can I transfer my benefits to my new employer? 

Re-joining the scheme with the same employer

You can re-join the scheme with the same employer if your employer and the Pensions Committee agree. 

You would re-join the arrangement that your employer currently offers which can be different from the section you were in before.

Auto enrolment

When you have left a scheme that you were auto-enrolled into, your employer is required to re-enrol you. The employer will re-enrol you on anniversary of their staging date, which is every three years. If you are re-enrolled then you can opt out again.

Find out more about auto enrolment.

If you need more information please contact us.

You may need to take time away from work for various reasons including maternity leave, paternity leave, adoption leave, parental leave or sickness. The sections below explain what will happen in respect of making pension contributions during this time.

Family Leave (Maternity Leave/Adoption Leave/Paternity Leave/Additional Paternity Leave)

If you take Adoption Leave, Paternity Leave or Additional Paternity Leave you will be treated in the same way as a woman taking Maternity Leave.

For the first 39 weeks of maternity leave:

• You will pay your normal rate of contributions but only on the pay you actually receive during maternity leave, this includes Statutory Maternity Pay.
• Your employer will be expected to pay their normal contributions based on the pay you would have been receiving if you were not on maternity leave plus any shortfall in your contribution.
• Your membership will continue as normal, based on the salary you would be receiving if you were not on maternity leave.
• If you return to work before the end of this period, contributions must start up again immediately.
• If you are receiving Maternity Allowance, this means your employer is still liable to pay pension contributions even though you are receiving pay direct from the State and not from your employer. Your employer will pay both member and employer contributions for the first 39 weeks based on the pay you would have been receiving had you not gone on maternity leave.

After the first 39 weeks:

• We would not expect any contributions unless you are receiving pay. You will have a break in your service for any period where no contributions are paid.
• On your return, you can choose whether to make extra contributions to cover the period that you have been away. Your employer has discretion whether to pay their share. If they decline to pay you may, if you wish, pay the employers share. If you choose not to pay the contributions you will receive reduced benefits at retirement.
• If you die whilst on maternity leave, the full range of death benefits that would be payable if you were not on maternity leave would be paid. This would be based on the rate of earnings you would have been receiving if you were not on maternity leave.

Other absence

If you have any other absence for example Parental Leave or a temporary absence and you continue to receive pay during the absence, you and your employer will continue to pay contributions based on the actual salary paid. If you are absent without pay, neither you or your employer will pay contributions for the period of unpaid leave. 

When you return to work, you will have the option to pay the contributions missed or any shortfall in contributions. If you opt to do so, your employer has discretion whether to pay their share. If they decline to pay, you may if you wish, pay the employers share. If you choose not to pay the missed contributions your benefits will be adjusted accordingly.

If you are not making any payments to the scheme, there is a maximum period of absence that applies before you will automatically become a leaver. This period of time will be dependent on the scheme that you are contributing to.  

To obtain more information on the relevant rules of your specific scheme, please select your scheme or give us a call and we will help.

DB Online is the easy, simple and secure online facility which is provided to members of Defined Benefit (DB) schemes administered by TPT Retirement Solutions.

An account is created for a DB member and two separate letters are issued to them one with their account name and the other contains a unique temporary password.

Logging in to a pensions account allows a member to:

• Review and keep their personal details up to date.
• View their scheme record.
• Submit enquiries and request quotes.
• See their benefit statements.
• See their payslips and P60’s without having to wait for the post to be delivered; and be able to update their bank details if they receive a pension.

Defined Contribution members

Defined Contribution scheme members will have a charge deducted from your fund to cover the administration of the fund you are invested in.

Fund charges

If you are invested in a Target Date Fund there is a charge of 0.5% per annum which is deducted from your fund while it remains invested in the Scheme. 

Other fund expenses also apply up to a maximum of 0.01% a year.

The total charges deducted from your fund may be up to 0.51% each year and a transaction cost may also apply.

If you decide to invest in one of the following self-select funds:
• Socially Responsible Investment Fund
• Global Equity Fund
• Bond Fund
• Index Linked Gilts Fund
 the annual Charge and other fund expenses are 0.45% 

If you are invested in Ethical TDF Pre-1999 (if you joined the Ethical Fund before October 1999, you may have funds invested in a related Ethical TDF Pre 1999), the total charges, including the annual fee and other fund expenses, are up to 0.53%.

If you are invested in the Ethical TDF Post-1999 the total charges, including the annual fee and other fund expenses , are up to 0.72%.

If you are invested in Property Fund the total charges, including the annual fee and other fund expenses, are a total expense ratio of 1.02%, with a property expense ratio (PER) of  0.4%. The PER is the cost associated with the management and operation of the physical properties in the portfolio.

If you are invested in Cash Fund the total charges, including the annual fee and other fund expenses, are up to 0.45%. This has been reduced from 0.46% from 1^st September 2020.

If you are invested in Diversified Growth Fund the total charges, including the annual fee and other fund expenses, are up to 0.52%. This has been reduced from 0.97% from 1st September 2020.

The fund value that you are quoted at any time will take into account any fees charged. Further information can be found ​here.

Transaction charges may also be payable in addition to the above, for example broker commission, stamp duty or the costs of buying and selling investments. These charges vary depending on a variety of factors including, the amount of money being switched on any one day.

Further details of the charges deducted from your fund are available on request.  If you need anything please contact us. 

Setting up a pension from a Defined Contributions fund

When you draw your benefits there may be charges for setting up a pension (or ‘annuity’) with another provider, as we do not pay pensions direct to members of Defined Contribution schemes.

Advice

You may want financial advice before taking your benefits and below are links to the government service (Pension Wise) and a site which allows you to search for financial advisors in your area:

www.pensionwise.gov.uk
www.unbiased.co.uk

We can also pass your details to the TPT Pension Decision Team who may be able to help you. There is a charge for this service.

Quotes for Defined Benefit scheme members

A charge would be applicable for additional quotations where a number of quotations have been provided over the previous 12 month period. Outlined below are the numbers of each quote you are allowed free of charge in a 12 month period and the fee applicable for a further quote.

• 2 Retirement quotes – each additional quote fee £100 
• 1 Benefit statement – each additional quote fee £100
• 1 Transfer quote – each additional quote fee £150 *  
• 1 Divorce quote – each additional quote fee £150 *
*Additional charges will apply if the transfer value is over £300,000

Fixed charges that cover our administration will apply if you divorce or end your civil partnership and your pension is shared with your former spouse or civil partner see:

- I’m going through a divorce, what are my options for dealing with pension’s rights?