Frequently Asked Questions - Introduction
What exactly is the Civil Service Additional Voluntary Contribution (CSAVC) Scheme?
The CSAVC Scheme is a means of saving towards your retirement.
This AVC Scheme is a ‘money purchase’ type of arrangement which means that the value of your retirement benefits will depend mainly on the following:
- the AVCs you pay
- the investment return on your payments.
- how long your payments are invested for.
- when you choose to retire e.g. early or late
- the CSAVC charges, and
- the rates for converting your AVC fund into pension when you retire.
Am I eligible?
The CSAVC Scheme is available to members of the Classic, Classic Plus, Premium and Nuvos Schemes. Reference to Civil Service Pension Scheme (CSPS) refers to these four schemes.
Why join an AVC Scheme?
The CSPS produces an income for its members in retirement – but for some it may not be enough, on its own, to allow them to enjoy a comfortable standard of living when they stop working.
If you will not qualify for a full pension from the CSPS – perhaps because you will have less than 40 years service at retirement, or because part of your earnings are non-pensionable (e.g. overtime or special payments) - Additional Voluntary Contributions (AVCs) could be the ideal way of ‘topping up’ your existing pension arrangements.
By joining the CSAVC Scheme through Scottish Widows in addition to your main CSPS pension you can also benefit from:
- tax relief on any payments you make to the Scheme, at your highest rate. Tax treatment depends on your personal circumstances. Your circumstances and tax rules may change in the future.
- additional protection for your dependants. If you die before taking retirement benefits, the full value of your AVC fund will be paid to the Trustees of the CSPS as a cash sum. They will use it to provide benefits for your dependants or other beneficiaries.
Do I have to join the CSAVC Scheme to make AVCs?
No. You can take out a Free Standing AVC (FSAVC) in your own name.
However, an advantage of joining the CSAVC Scheme is that some of the administration is undertaken by your pension administrator on behalf of Scottish Widows. Scottish Widows offer those joining the CSAVC Scheme a reduction to the standard total charge levied. The current reduction is 0.4% off the total annual fund charge and this has been specially negotiated between Scottish Widows and the Civil Service for your benefit.
Full details can be found in the Investment Options and Charges booklet (pdf).
The next step?
If you are considering joining the CSAVC and would like more information please call Scottish Widows on 0800 0284 419 from 9am - 9pm weekdays and 9am - 1pm on Saturdays.