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Legal Terms - Additional Voluntary Contribution
An additional voluntary contribution (AVC) refers to an extra payment that an employee can make to a pension scheme. The purpose of this payment is to enhance the benefits that will be available from the employee's pension fund upon retirement. Additional Voluntary Contributions (AVCs) can be deposited into either an employer's designated scheme or a separate scheme chosen by the employee, known as a free-standing AVC. Payments are received after deducting the basic rate tax and are supplemented by a payment from HM Revenue and Customs.
An additional voluntary contribution (AVC) refers to an extra payment that an employee can make to a pension scheme. The purpose of this payment is to enhance the benefits that will be available from the employee's pension fund upon retirement. Additional Voluntary Contributions (AVCs) can be deposited into either an employer's designated scheme or a separate scheme chosen by the employee, known as a free-standing AVC. Payments are received after deducting the basic rate tax and are supplemented by a payment from HM Revenue and Customs.
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