Additional Voluntary Contributions (AVCs)

You can save AVCs on top of your basic Scheme pension and they are a tax-efficient way of saving for extra pension or lump sum benefits when you retire.

Key facts:

  • You can save any amount up to 50% of your gross taxable pay.
  • You get automatic tax relief at your highest tax rate.
  • If you choose to pay your AVCs through SmartAVC, you and British Airways (BA) pay less National Insurance (NI) and BA passes most of its NI saving on to you by increasing your AVC amount, currently by 10%.
  • You can choose whether to invest in one, two or all three AVC funds.
  • There are currently no transaction charges that have to be met by members.
  • Each fund has a different type of return. You can choose from a lower-risk fund with a guaranteed return or a higher-risk fund in which any returns you get are linked to the value of your investment, which can rise or fall, or you can split your money across more than one fund.
  • When you retire you can choose to take your AVC fund as part of your retirement lump sum, which is tax-free within HM Revenue & Customs (HMRC) limits, use it to buy extra pension.
  • Or, you can choose to transfer some or all of your AVCs to a different pension provider (independently of your APS Scheme benefits if you want) instead of drawing them from the Scheme.
  • Our AVC funds are managed by the BA Pensions team and are only available to APS and NAPS members.

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