Set Up Additional Voluntary Contributions (AVCs)

Additional pension contributions allow members of pension schemes to pay extra contributions to build up additional benefits.

This can be by a percentage of salary contribution, a flat amount or a lump sum. The type of contribution is by an agreement between the employer and the employee, subject to their regulations.

The sector-specific schemes for the Civil Service are:

• Effective Pension Age
• Enhanced Effective Pension Age
• Money Purchase Top-Up
• Supplementary Scheme - Earnings Cap

There are several additional voluntary contributions that a member can select. Two secondary classifications offer the ability to define those additional contributions, with the rules and regulations applicable to each of them. To report the appropriate details, it is recommended that you create elements for these scenarios:

• Additional Voluntary Contributions for each parent scheme
  • And one of each of those for Member, or Member and Partner
• Additional Pension Contributions for each parent scheme
  • And one of each of those for Member, Member and Partner
• Added Years for parent scheme of Alpha
  • And one of each of those for Member or Family
• CSP Effective Pension Age for parent scheme of Alpha
• CSP Enhanced Effective Pension Age for parent scheme of Alpha
  • And one of each of those for age 60 or 65
• Stakeholder Pension
• Supplementary Scheme - Earnings Cap

The number of elements required may increase if both flat amount or percentage deductions are required.

Note: If the employee pays by lump sum this is outside the payroll process, and is an agreement between the employee and CSP. There are no reporting requirements.

To create the elements:

1. Use the Elements task in the Payroll Calculation work area.
2. In the Create Element window, complete the fields as show here:

   Additional Voluntary Contributions Pension Scheme Element

   PRIMARY CLASSIFICATION	SECONDARY CLASSIFICATION	CATEGORY
   Pre-Statutory Deductions	Additional Pension Contributions Pre-Statutory	Benefit
   Voluntary Deductions	Additional Pension Contributions After Tax	Benefit

   Additional questions are available on the questionnaire to identify the type of additional pension contribution you are creating:

3. Select Alpha as the parent pension scheme.
4. Select the type of additional contribution:
   • Additional Pension Contribution (APC) o Additional Voluntary Contribution (AVC) o Added Years
   • CSP Enhanced Effective Pension Age o CSP Effective Pension Age o CSP Money Purchase Top Up
5. Depending on the type selected, you can also specify who the beneficiaries are:
   • For AVC or APC, beneficiaries can be either Member or Member and Partner o For Added Years, beneficiaries can be either Member or Family
6. If the response to "What type of additional pension is this deduction?" is CSP Enhanced Effective Pension Age, an additional question is displayed: Which pension age option applies? Select either 60 or 65.
7. Enter the pension provider.
   • Once the element is created, you must define eligibility.