Free Standing Additional Voluntary Contributions (FSAVCs)

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Columns of coinsThese are similar to in-house AVCs but are not linked to the LGPS in any way. With FSAVCs, you choose a provider, usually an insurance company. You may wish to consider their different charges, alternative investments and past performance when you do this.


How much can I pay?

You choose how much to pay into an FSAVC arrangement. You can pay up to 100% of your UK taxable earnings, less your normal pension contributions.
Your FSAVC fund should grow as it is invested and will be available later in your life to convert into an additional pension of your choice. You can often choose which investment route you prefer.
You can take up to 25%* of the value of your FSAVC fund as a tax-free lump sum, provided the lump sum does not exceed £263,750 (2019/20 figure) or if you have previously taken payment of (crystallised) pension benefits, 25% of your remaining lifetime allowance.
*From April 2015 you can take the remainder of your FSAVC as a lump sum (subject to your marginal tax rate) provided the FSAVC provider allows this option.

You can also pay FSAVCs to provide additional life cover

Your LGPS membership already gives you cover of three times your assumed pensionable pay if you die in service, but you can increase this amount via an FSAVC or use the FSAVC to provide additional dependants benefits on your death in service.
This may be subject to satisfactory completion of a medical questionnaire.