Making Additional Voluntary Contributions (AVC)
As the term implies, it is an extra amount of money one voluntarily contributes (in addition) to the already existing compulsory monthly pension contribution.
Please note that you do not need to open a separate pension account or fill any additional forms as this contribution would be made directly to your already existing pension account. All you need do therefore is notify your employer of your intention to make AVCs.
AVCs are however peculiar because they can be withdrawn at anytime and there is a tax benefit if left for a period of five years and over.
Below are steps you should take to start your AVC today:
- Decide on an amount that is convenient for you to contribute in addition to your pensions. Say for instance in saving up for a project, how much do you need for the project and how much do you need to contribute periodically to meet up that amount of money.
- Notify your employer to include the agreed, additional amount to your pension contribution on a stipulated, periodic basis, (monthly, quarterly or biannually, etc)
- Monitor your contributions online and in our quarterly statements
Benefits Of AVC
- All AVCs are taken from your total emolument before tax is deducted; hence the contribution is TAX EXEMPT
- AVCs are flexible in structure. Contributions can be made monthly,quarterly or annually and in any amount to suit your needs
- It also encourages a Disciplined Savings Culture.-AVCs are managed by Professionals
- AVCs can also be withdrawn at anytime,although withdrawals before 5years will be TAXABLE
Click to download Additional Voluntary Contributions Form