Additional Voluntary Contributions
maximise your pension options at retirement
What is an AVC?
Additional Voluntary Contributions (AVC’s) are tax-efficient, extra savings you make to maximise your pension options at retirement.
AVC’s can be deducted through your payroll and/or made as lump sum investments. You cannot withdraw money from an AVC fund until you retire, but you can decide to increase, decrease or cease your contributions at any time.
For most Eircom & An Post employees, the benefits of the main pension plan are lower than the maximum benefits permitted by the Revenue Commissioners. Therefore, you have scope to pay AVC’s and increase your retirement benefits, without breaching the Revenue maximum benefits rule.
For example, some items are not included in the pension from the main plan – e.g. overtime, bonuses, benefit in kind and a full widow’s pension.
AVC’s fill this shortfall, and you can access the AVC fund at retirement.
Why make AVC’s?
- Tax relief on regular contributions.
- Tax rebate on lump sum contributions.
- Tax Free compound investment growth.
- Maximise your retirement tax free lump sum and increase your fortnightly pension.
Tax advantages of making AVC’s
Making AVC’s is an extremely tax-efficient method of saving. The Government provides workers with generous tax relief at their highest tax rate as a way to encourage pension saving. In other words, if your income levels bring you into the higher income tax bracket, then you will receive tax relief at that rate.
Limits on pension saving?
It would be great if you could save unlimited amounts into your pension fund and still receive tax relief, but because the tax breaks are so good, the Government have established limits which apply to your total contributions.
Maximum % of total pay that you can pay each year to a pension account
* Subject to Revenue maximum of €115,000
Warning: The value of your investment may go down as well as up. Past performance is not be a reliable guide to future performance.
An Post TUG AVC Scheme
This scheme has now moved to an online application process.
Please read the scheme details and review the policy documents below.
Please view this short 3 minute video about the AVC Scheme:
An Post TUG AVC Scheme Details
We have the An Post TUG AVC Scheme with Zurich. The scheme provides employees of An Post with the opportunity to make extra provision for retirement.
- An Post and the An Post Trade Union Group (TUG) established the AVC Scheme to provide staff with the opportunity to make extra savings for their retirement in a convenient and tax-efficient manner.
- Any contributions you make (up to certain limits) will receive full income tax relief
- At retirement, you may be able to take part of your accumulated fund as a tax-free cash lump sum (subject to Revenue limits).
- You have a say in how your money is invested.
- The AVC Scheme can enhance your benefits if you retire early.
- The AVC Scheme is completely voluntary. You decide if you wish to join the plan and how much you wish to contribute.
- The AVC Scheme benefits are provided through an AVC policy in your name, taken out with Zurich Life, and the actual benefits will depend on whatever the AVC Investment Account has accumulated for you under this policy.
- The scheme follows an Automatic Investment Strategy for regular contributions, that offers aggressive investment in the early years, while you still have many years to go to retirement. This is followed by a more cautious strategy as you approach retirement. If you select the Automatic Investment Strategy, PensionSTAR, this will automatically redirect regular contributions and switch units between funds at pre-agreed future dates.
- For lump sum single premium contributions, which cannot follow the above investment strategy, however based on current market, we currently recommend the Prisma 2 fund, see attached information sheet.
Please read the An Post Pamphlet and the scheme Explanatory Booklet which outlines the main details of the scheme and answers some of the most frequently asked questions.
Zurich’s bank details
You can pay a single premium by EFT.
Ulster Bank, Main St Blackrock
S/C 98-53-30 A/C 11591008
Name: Zurich Life Assurance Euro A/C
IBAN: IE34 ULSB 9853 3011 5910 08 Swift ULSBIE2D
Please quote the Zurich Group Scheme Ref when making the payment: (60500560 An Post) and also email firstname.lastname@example.org to confirm the date and amount paid so that I can arrange for the policy to be set-up, premium to be allocated and a tax certificate issued.