Additional Voluntary Contributions (AVCs) are an important part of Silver Thatch Pensions programme. These contributions:
- allow you to boost your account value to help ensure that you have enough saved for your retirement;
- allow you to save through the convenience of payroll deductions or lump sum deposits;
- give you the flexibility to start, stop or change the level of your contributions at any time;
- offer you control over your investments – you decide where to invest your AVCs, picking from a range of professionally managed investment portfolios;
- give you access to quality investments typically not available to investors with modest amounts of money; and
- allow you to alter the overall risk-reward position of your investments (see “Investing your AVCs“)
In addition to basic contributions, you can make Additional Voluntary Contributions (AVCs). These are contributions over and above the required basic contributions. AVCs are deposited in your member account.
If you wish to make AVCs, you should complete an Additional Voluntary Contribution Form. This form is used to:
- tell us how much you wish to contribute in AVCs,
- inform us and your employer whether you wish to have these AVCs deducted directly from your payroll or make a lump-sum contribution
- instruct us where to invest your AVCs, and
- move your existing AVC investments from one investment portfolio to another.
If your employer continues to pay into your pension plan in excess of the CI$8,700 cap in any calendar year, the excess will automatically be considered as AVCs. If you do not complete the Additional Voluntary Contribution Form, these funds will be invested automatically on the same basis as your basic contributions.
Once you submit your form, if you have requested payroll deductions, contributions will be deducted from your pay cheque, usually starting with the next full pay period.
Keep in mind that you cannot withdraw AVCs until retirement, or as otherwise permitted under pension law.