AVC Extra

What is it?

The AVC arrangement for CARE is called AVC Extra.

AVCs (Additional Voluntary Contributions) are a tax-efficient way to save more towards your retirement. They are paid on top of the regular contributions you and your employer pay in.

You can either make AVCs regularly, or as one-off payments.

The money you pay into AVCs is invested in the fund, or funds, you have selected.

How AVC Extra works

AVCs are taken from your pay before tax.

You choose how much you want to pay in contributions, subject to set limits, with your employer deducting these through your pay before you are taxed.

Your benefits with AVC Extra are treated differently to your main Fund benefits. Up to 25% (but no more than £268,275) of your AVC Extra retirement account can be taken as a lump sum, which is currently tax free.

The remaining value of your account can be used to buy an annuity on the open market or to provide an additional lump sum which would be subject to tax.

Alternatively you may be able to transfer your AVC Extra account to another provider if you want to take flexible drawdown of your benefits.

You can learn more in our Guide to AVC Extra.

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 or amend contributions (including making a one-off payment), make sure you log into your Fund account or register for one.

Where do I go for help about investments?

If you're not sure, it is strongly recommended that you speak to an independent financial adviser. You can find a list of local advisers on the Unbiased website.

Neither your employer, Railpen nor the Trustee can offer advice on financial matters.

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.