Shared Additional Voluntary Contributions Scheme

Additional Voluntary Contributions (AVCs) allow employees to build up extra pension savings for retirement. The Local Government Pension Scheme (LGPS) has a provision within its regulations to allow an employee to enter into an agreement in which the employer can decide to also contribute to their employee's AVC arrangement thus allowing for a salary sacrifice arrangement to be established. The introduction of a Shared Cost AVC scheme would generate National Insurance savings for both the employee and the employer. The service provider will deliver a fully managed solution including a dedicated website, incorporating an administration facility to fully manage employee applications and salary sacrifice data. The fee will be paid out of the National Insurance savings made by Derby City Council from colleagues participating in the scheme. It is anticipated that numbers in the scheme will increase over time so whilst the charges each month could increase so would the savings. Additional information: The contract value has been based on estimated demand across the contract duration. It is proposed to consider procurement options for a replacement longer term contract 18 to 30 months into the proposed contract duration. The Council intends the new contract to commence from spring/summer 2021 and run for 36 months.