Free standing AVCs
If you want to pay additional voluntary contributions but do not want to invest them in the scheme you will need to set up a free standing additional voluntary contribution (FSAVC) arrangement with an insurance company or other financial services provider.
Any contributions you pay to an FSAVC arrangement are also tax-free, however, you will need to make your own arrangements to claim the tax relief from the Inland Revenue, unless your FSAVC contributions are deducted from your pay and paid to your FSAVC provider by your employer.
Your total pension contributions (to the scheme and AVCs) must not add up to more than 100% of your gross pay (before tax) in any tax year, up to an annual limit of £245,000 (2009/2010).
If you are interested in looking into this option, you will need to contact an FSAVC provider direct or through an independent financial adviser.
To find a local independent financial advisor see Quick Links - Unbiased to visit their website.