AVC Extra

What is AVC Extra?

If you’re already making the most of your pension and BRASS contributions, you may wish to consider AVC Extra.

You can join AVC Extra if:

• you are already a contributing member of the Scheme;

• you are a contributing member of BRASS - the Scheme’s main Additional Voluntary Contribution arrangement; and

• your normal scheme and BRASS contributions added together come to 15% of your gross pay or 20% or your pensionable pay, whichever is higher.

Depending upon your age, your benefits from AVC Extra may be payable at the same time as those from the Scheme and BRASS, although they will be paid separately.

Please note: the AVC Extra arrangement is not available members of the Network Rail Section.

How does it work?

You choose how much you want to pay in contributions, subject to set limits, with your employer deducting these through your pay before you are taxed.

Your benefits with AVC Extra are treated differently to your main Scheme benefits, although up to 25% of your AVC Extra retirement account can be taken as a lump sum, which is currently payable tax-free. The remaining value of your account can be used to buy an annuity on the open market or to provide an additional lump sum which would be subject to tax. You may be able to transfer to another provider to provide flexible drawdown benefits.

If you choose to receive or transfer your main Scheme benefits, you will need to take payment or make transfer provisions for your AVC Extra account if you have a protected pension age and you are planning to take or transfer your main RPS benefits before age 55. If you are over age 55, you can take payment or transfer your main Scheme benefits and leave your AVC Extra account where it is until you have decided how you would like to receive these benefits (in accordance with Scheme rules).

How do I join and manage my AVC Extra account?

If you want to join AVC Extra, or you’ve already done so and want to change your investment choices (including making a one-off payment) or amend contributions, you can use these forms.
Please note: unfortunately, AVC Extra members can't access their myRPS accounts on this website at the moment. You can contact us by ringing 0800 2 343434.

Where can I learn more?

You can find more information about AVC Extra in this 'read as you need' Guide to AVC Extra (please note: this guide is not applicable to Network Rail members).

Where can I get advice?

Neither your employer, RPMI nor the Trustee can advise you on that. You have to make the decisions that are right for your unique needs. It’s strongly recommended that you speak to an Independent Financial Adviser (IFA), regulated by the Financial Conduct Authority. You can find IFAs in your local area at www.unbiased.co.uk

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