If you are a member of the Pension and Assurance Scheme for Lay Employees of the Methodist Church (PASLEMC) you may pay Additional Voluntary Contributions (AVCs) to enhance your retirement benefits.
You may, at the same time, make contributions to an external arrangement such as a Free Standing AVC, a stakeholder or personal pension. You may wish to seek independent financial advice on the question of external personal arrangements versus the internal AVC arrangement.
How much can I pay?
AVCs paid to the Scheme are deducted from your Pensionable Salary and you receive immediate tax relief in the same way as your ordinary contributions. There is a limit set by HM Revenue and Customs (HMRC) on total contributions on which members can claim tax relief, which may be made to the Scheme and any other pension arrangement of 100% of your income or £3,600 if higher.
If you wish to pay the maximum contributions allowable you would still have to receive a nominal Salary to cover deductions eg, NI contributions and PAYE. For practical reasons the maximum level of contributions (ordinary and AVCs) that the Scheme can accept is 70% of taxable earnings. You may wish to seek independent advice about topping-up your contributions to the HMRC (100%) limit.
You may pay regular AVCs of a fixed amount or as a fixed percentage of Salary. You may also make single AVC payments.
Please refer to the AVC Booklet for more information. If you do not make a decision as to where you would like your money invested, then this will be placed in the default fund.