Here’s how a Shared Cost AVC scheme facilitated by AVC Wise can save your organisation money:

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Does your organisation have Local Government Pension Scheme (LGPS) Members?

You could save up to 14.3%^{1Before fees} across all salary sacrifice Shared Cost Additional Voluntary Contributions

Employer saving opportunity

By offering employees the opportunity to swap to a salary sacrifice Shared Cost AVC Scheme, you as the employer can save a sum equal to 14.3% ^{1Before fees} of the total salary sacrifice amount

AVC Wise provides a fully managed solution to facilitate LGPS organisations across the country switch to salary sacrifice Shared Cost AVCs with expert tax advice, employee onboarding and contribution management through our innovative online portal.

^{1Before fees}13.8% National Insurance Contribution savings and 0.5% Apprenticeship Levy savings where applicable.

Example #1:

A Council has 4000 employees who are LGPS members. With an assumed take up of 7% and an average monthly contribution of £200 per employee, the below savings are available:

£65,856 /Annually

Employer savings after fees

£235.20 /Annually

Employer savings per employee after fees

£320.95 /Annually

Employee National Insurance Contribution (NIC) savings on top of tax savings -assumes the employee has chosen to reinvest NIC savings.

How much could you save as an employer?

CURRENT MEMBERS OF LGPS

5000

ESTIMATED TAKEUP

5%

AVERAGE CONTRIBUTION

£200

EMPLOYER’S ANNUAL
NIC SAVING £65,856

EMPLOYER’S MONTHLY
NIC SAVING
£5,488

Contact AVC Wise to Start Saving

Who are AVC Wise?

AVC Wise was formed by tax experts, PSTAX, and provides a fully managed salary sacrifice Shared Cost AVC solution and platform. The AVC Wise team includes experts in all aspects of salary sacrifice, tax, the Local Government Pension Scheme and AVCs to offer comprehensive support to employers at every stage of the process.

AVC Wise manage the employee onboarding and ongoing contribution management through our innovative web portal, whilst helping your HR or Payroll team set up the necessary arrangements with your fund provider.

Our fully managed solution minimises administration for the employer and increases employee engagement, with a dedicated employee helpdesk, LGPS awareness and education sessions for employees, and full communications support from our in-house Marketing experts to assist your Internal Communications team in promoting the benefits of Shared Cost AVCs to your staff.

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Shared Cost Additional Voluntary Contributions

If you are an employer that offers the LGPS, you will know that employees who are members of the LGPS can build up their pension benefits for retirement by paying Additional Voluntary Contributions (AVCs), by way of a tax-free deduction through payroll, which are then paid into a separate pension pot with your current AVC provider.

What you may not know that the LGPS regulations allow an employer to also contribute to an employee’s AVC arrangement. This is known as a ‘Shared Cost’ AVC which can be provided through a salary sacrifice arrangement, and that’s where AVC Wise come in!

What can I save?

How does AVC Wise work for the employer?

If you choose to offer your staff Shared Cost AVCs facilitated by AVC Wise, those who join or move from a standard AVC to Shared Cost AVCs will accept a reduction in their salary, otherwise known as a salary sacrifice. You, as the employer, will agree to contribute the salary sacrificed amount as your contribution into the Shared Cost AVC and your employee will also contribute £1 per month as their contribution.

Your organisation will make National Insurance (13.8%) and Apprentice Levy savings^{2Only applicable to employers with a payroll over £3m where the full Apprentice Levy fund is not used} (0.5%) on the total amount of salary sacrificed, which could be of substantial value in large organisations.

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