Additional Voluntary Contributions (AVCs)

If you would like to start paying Shared Cost AVCs there are 2 options. You may arrange to set up a standard policy directly with Prudential or a Salary Sacrifice Shared Cost AVC arrangement.

A Standard policy can be set up directly with Prudential and you may pay up to 100% of your salary.

In a Shared Cost AVCs arrangement, your remaining salary must not fall below National Minimum Wage (NMW). As this can change each year, you would need to adjust your contributions if you are close to the NMW limit. Your contributions will be held with Prudential. A Shared Cost AVCs arrangement should be set up with 'My Money Matters' who will notify Prudential on your behalf.

Either option enables an employee to build an additional pot of money alongside their main pension pot, with contributions exempt from Income Tax and National Insurance Contributions (NICs). There is also the potential to take it all as a tax-free lump sum when you retire.

Your Shared Cost AVCs will be held with the Pension Fund's AVC provider, Prudential, and will be processed via a reduction in your salary.

• To apply for a Standard Policy: Please contact Prudential on 0345 6000343 or complete an application form on their website Login (mandg.com)
• To apply for a Shared Cost AVC: Please register or sign into your account at https://app.my-money-matters.co.uk/login. Here you can click the 'Learn More' button on the 'Shared Cost AVCs' title on your dashboard and on the next page click 'Get started'. Once you're redirected to the Shared Cost AVC platform, click 'Ready to apply?

For both arrangements, Prudential will send an instruction to LCC's Payroll Service to start deducting contributions from your salary. LCC payroll must receive the instruction directly from Prudential and cannot start deductions via direct instruction from yourself, as you do not have a contract with Prudential until you have applied.

Depending on the date you decide to start contributions within the payroll cycle, it may be 6-8 weeks before deductions commence.

You may decide you wish to stop paying Shared Cost AVCs. To do this you must first notify Prudential (for a Standard AVC) and both Prudential and My Money Matters for a Shared Cost AVC arrangement.

To stop your shared cost AVC

You can either call Prudential on 0345 6000343 who will take your instruction over the phone, or you can log in to your online account with Prudential (part of M&G plc) and send a secure email. Login (mandg.com)

If you have a Shared Cost AVC arrangement, you must also notify 'My Money Matters'.

Once your instruction has been received by Prudential this will be passed to the relevant team who will instruct LCC's Payroll Service to cease deductions.

Please note that LCC payroll cannot stop deductions via direct instruction from yourself and must receive the instruction directly from Prudential.

Important: The earliest disinvestment (withdrawal) of your Shared Cost AVC plan can occur is on your date of leaving. If you are leaving or retiring, then continuing to make payments to your Shared Cost AVC plan until your date of leaving will delay the disinvestment of your Shared Cost AVC and payment of your main scheme pension.

Depending on the date you decide to cease contributions within the payroll cycle, it may take up to 8 weeks following your last contribution for the disinvestment to be received from Prudential.

It is recommended you notify Prudential and My Money Matters after pay day and before 8^th of the following month. This will help ensure the change is applied at the earliest opportunity.

If you are retiring

If you’re planning to retire and have a Shared Cost AVC alongside your LGPS pension, there are three important things to consider:

1. Your first pension payment may be delayed.
   • Your LGPS pension can’t be paid until your Shared Cost AVC has been withdrawn by your Shared Cost AVC provider, which can only happen on or after your retirement date. This means there will be a delay of a few weeks before you receive your first payment. Learn more about the process.

2. You may need to prepare yourself for a gap in income.

Any delayed pension payments will always be backdated, but there may be a short period where you are not receiving any income. So, it’s important to plan ahead. Learn more about delays.

3. Your Shared Cost AVC is paid as a lump sum.

You need to decide how to use this lump sum at retirement (such as taking it as tax-free cash or using it to buy an annuity). It’s an important decision and worth speaking with an independent financial adviser. Learn more about your options.

For more information visit the LPPA website or speak with your Shared Cost AVC provider.

My Money Matters is a financial wellbeing platform that helps public sector employees, including those in the Local Government Pension Scheme (LGPS), make the most of their retirement savings.

My Money Matters specialises in Shared Cost AVCs; a tax-efficient way for employees to boost their pension savings through salary sacrifice. Their services include:

• Setting up and managing Shared Cost AVC schemes for employers.
• Providing a user-friendly online platform for employees to manage contributions.
• Offering regulated financial advice through partners like Westminster Wealth Management.
• Delivering financial education resources to improve employee confidence and wellbeing.

My Money Matters can support you if:

• You want to increase your pension savings in a tax-efficient way.
• You’re unsure how to invest your Shared Cost AVCs and want professional advice.
• You’re planning for retirement and want to maximize your tax-free lump sum.
• You need help understanding how Shared Cost AVCs fit with your main LGPS pension.

To contact My Money Matters (formerly AVC-Wise), please head to the Contact US section of their website.