PSI25.3.4 - Flexibility in Pension Provision – Flexible Use of AVCs – Continuation of Contributions

(This archived guidance relates to HMRC discretionary practice before the 6th April 2006. For current guidance on Registered Pension Schemes see the Registered Pension Schemes Manual)

Subject to normal requirement relating to the duration of member contributions to the scheme or a new contract (see PSI part 4) a member remaining in employment may continue to pay additional voluntary contributions up to the usual 15% limit even after choosing to take AVC benefits.

Any additional contributions to an AVC fund from which benefits are in payment will need to be added to the existing AVC fund and will thus need to be taken into account at the three yearly review stage when recalculating the ongoing pension within the drawdown range of 35% to 100%.