Additional Pension Payments
There are several ways in which you can increase your pension scheme payments on both the Lothian Pension Fund and the Scottish Teachers' Superannuation Scheme. It is important to note that the University does not contribute to any of the below additional payments.
Additional Voluntary Contributions (AVC)
If you choose to top up your pension with an AVC, the contributions you make to it are invested separately in funds managed by an insurance company or building society. Contributions to AVCs can be deduceted from your salary and then benefit from tax relief at source. You may cease AVC payments at any time - there is no period of obligation. These accrued funds can be used, at retirement, to buy an annuity which acts as a fixed amount of additional pension benefit. Please note that annuities are affected by interest rates and they can both increase and decrease in value.
Free-Standing Additional Voluntary Contributions (FSAVC)
Operates by the same methods as the AVC described above and are provided by many financial institutions. However, contributions to FSAVCs cannot be deducted from your salary and do not attract tax relief at source. Payments are usually made by direct debit, with tax relief claimed from the Inland Revenue.
In all cases of increasing pension benefits we suggest that you speak to your current pension scheme adviser or an Independent Financial Adviser.