Salary Sacrifice Shared Cost AVC

 

 
A Salary Sacrifice Shared Cost Additional Voluntary Contribution Scheme is a variation that can potentially provide Local Government Pension Scheme (LGPS) members with the opportunity to make savings on national insurance contributions (NIC) in addition to existing tax savings made through AVCs. This works by giving the option to sacrifice a specified amount of pay in return for the Council making  AVC contributions on your behalf.



 

Please Note:There are no provisions within the Scottish Teachers’ Superannuation Scheme to allow a Salary Sacrifice Shared Cost Additional Voluntary Contribution scheme.

 

Local Government Pension Funds are required to have AVC arrangements available and Fife currently offers AVC plans through Prudential and Standard Life. Our arrangement to offer a scheme is only available with Prudential at this time. It is hoped that a scheme with Standard Life will be launched soon.

 

Existing Prudential AVC members Aggregation of plans 

Prudential AVC members should read the information guide at the bottom of page.

 

 

Joining the Salary Sacrifice Shared Cost AVC Scheme

To participate, you will have a contract of employment with Fife Council and your hourly rate will not be allowed to fall below the National Minimum Wage after your AVC contribution is deducted.

 

 

The Application Process

 

LGPS members wishing to join the Salary Sacrifice Shared Cost AVC Scheme should:

 

1.    Read the information on In-house AVCs including the FAQ's below.

 

2.    Fife Council has a policy with Prudential and Standard Life to provide AVC plans however, only Prudential is able to offer entry into the salary sacrifice scheme at this time.

 

3.    For LGPS members who do not have an AVC Plan. Decide which in-house AVC you wish to invest in and follow the application process. You are required to specify the cash amount you wish the Council to contribute to your AVC plan on your behalf.  There is no minimum contribution required; however your hourly rate of pay must not fall below the National Minimum Wage. 

Apply online at www.pru.co.uk/localgovand follow the application process.  This constitutes as your formal agreement to reduce your salary for a minimum of 1 year in exchange for AVC contributions paid for by the Council. The agreement will continue unless you change or stop it.

 

4    Existing AVC plan holders  who wish to join the salary sacrifice scheme should complete the  Salary Sacrifice Agreement form and send it to Payroll Section, 3rd Floor Fife House or by email to Transactions.Payroll@fife.gov.uk  This constitutes as your formal agreement to reduce your salary for a minimum of 1 year in exchange for AVC contributions paid for by the Council. The agreement will continue unless you change or stop it. 

 

 

Your participation in the Scheme will begin on the next available payroll date, following receipt of your agreement and completed application form.

 

Once joined and your first deductions have been made, your payslip will show your reduced monthly pay before your tax and NICs are calculated as well as your AVC contributions.  Fife Council will send the contributions being paid on your behalf to your AVC provider.

 

 

 


 

 

 

 

 

 

 

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