Additional Pension Info Current Archive 'Top-up' Schemes This type of schemes enables people with a company pension to make additional contributions of their own, which buy extra pension rights at retirement. This is often called 'topping-up'.
Contributions are optional and fall under exactly the same rules as the main scheme.
AVC 's started before 8 April 1987 may allow for some tax-free cash to be taken, otherwise the whole fund must be used to provide a pension. Depending on the rules of the main scheme you may be allowed to transfer your AVC fund to the annuity provider of your choice. These schemes provide a way of transferring a pension fund from a company pension scheme to a personal pension under your own control - for example, when you change jobs. The maximum tax-free cash sum from a S32B depends on the length of service and final year's earnings with your old employer. In all other respects they are treated in the same way as PPP s funded by personal contributions.