Investment Choices

The Scheme offers two AVC options. You can direct your AVCs to either or have the contributions divided between the two. The options are:

Added service option

With this option, your AVCs are kept in the Scheme and you are provided with extra pension based on your average retiring salary, the length of time you have paid AVCs and your level of extra contribution.

Added service pensions receive Scheme increases (see Your Pension  for more details). Payment is guaranteed for at least ten years even if you do not live this long after retiring.

The pension provided is only for you. However, if you want to provide extra pension for your spouse, you can exchange some of your AVC pension on retirement.

Insurance option

With this option, your AVCs are transferred to an insurance company and you decide which of the insurer's funds your contributions are invested in. There is a choice between With Profits and any of the Unit Linked funds on offer.

When you retire the value of your AVC fund may either be used to buy an annuity from the insurance company or can be transferred back into the Scheme to buy pension.

For more information on the AVC investment options contact Pensions.