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Additional Voluntary Contributions (AVCs)
Background
The trustees of occupational pension plans have a statutory responsibility to
provide all plan members with a suitable means of making additional pension
provision via the payment of additional voluntary contributions (AVCs).
Furthermore, trustees have an obligation to monitor the suitability of the AVC
arrangements they have made available.
Key issues:
- Do the current AVC arrangements offer good value for money?
- Do the investment choices available meet the needs of the membership?
- Is the performance of the funds on offer acceptable?
- Should alternative investment managers be introduced?
- Are the AVC arrangements being effectively communicated to the membership?
- What options are similar plans/employers providing?
- Are the trustees fulfilling their duties?
- Does the AVC provider provide satisfactory administration?
What we can do to assist you:
- Review and report on your existing AVC arrangements
- Review and report on the current AVC arrangements available in the market
- Review and comment on AVC fund investment performance
- Comment on market practice
- Advise on the selection of alternative AVC providers
- Assist with the introduction/replacement of AVC providers
- Assist in fulfilling trustee obligations
- Design and implement effective employee communications
What the results would be:
- Confidence that your AVC arrangements meet members’ needs
- Confidence that your AVC arrangements satisfy statutory requirements
- Increased member awareness and understanding of the AVC options available
- Increased member satisfaction at the options available
- Possible cost savings and improved investment performance.
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