What is AVC Extra?

AVC Extra is the main AVC arrangement for the 2007 and CARE Sections of the Fund.

You may also want to think about joining AVC Extra if you are a member of the 1970 Section and already pay maximum BRASS contributions.

How does it work?

You choose how much you want to pay in extra contributions, subject to set limits. Your employer will deduct these through your pay before you are taxed.

Your benefits with AVC Extra are treated differently to your main Fund benefits. When you retire, up to 25% (but no more than £268,275, unless you have a higher protection) of your AVC Extra pot can be taken as a lump sum (currently tax-free). The remaining value can be used to buy an annuity on the open market or to provide an additional lump sum which is subject to tax. You may also be able to transfer to another provider if you want to use flexible drawdown of your benefits. Alternatively, you can take the remaining AVC Extra pot as a cash lump sum, which would be taxed at your marginal income rate.

1970 Section members only: If you have a protected pension age and want to take or transfer your main Fund benefits before age 55, you must take, or transfer, your AVC Extra pot at the same time.

If you are over 55, you can take or transfer your main Fund benefits and leave your AVC Extra pot where it is until you decide how and when you would like to receive these benefits.

How do I join and manage my AVC Extra account?

If you want to join AVC Extra, or you’ve already done so and want to change your investment choices (including making a one-off payment) or amend contributions, please log into your account.

If you have any queries, please phone our Helpline on 0800 012 1117 or email csu@railpen.com

Where can I get advice about investments?

Your employer, Railpen, and the Trustee are unable to provide financial advice. It is strongly recommended that you speak to an independent financial adviser (IFA), regulated by the Financial Conduct Authority before making any decisions. You can find IFAs in your local area on the Unbiased website.

Also in this section

Each of Railpen Limited (registered in England and Wales No. 2315380) and Railway Pension Investments Limited (RPIL) (Registered in England and Wales No. 1491097) is a wholly owned subsidiary of Railways Pension Trustee Company Limited (Registered in England and Wales No. 2934539). Registered office for each company: 100 Liverpool Street, London EC2M 2AT. RPIL is authorised and regulated by the Financial Conduct Authority for some of its activities. The administration of occupational pension schemes is not a regulated activity. Full details about the extent of RPIL's authorisation and regulation by the Financial Conduct Authority are available from us on request.