š· What are Additional Voluntary Contributions (AVCs)?
Additional Voluntary Contributions (AVCs) are extra pension contributions that an employee chooses to make on top of their regular workplace pension contributions.
These contributions are voluntary and are paid in addition to the standard contribution rates agreed between the employee and employer.
š¤ What counts as an Additional Voluntary Contribution?
An AVC is any extra amount an employee chooses to contribute to their pension beyond their normal workplace pension contribution.
For example:
An employee wants to save more for retirement than their standard contribution rate.
An employee chooses to make a one-off additional contribution.
An employee makes regular extra contributions alongside their usual pension deductions.
š” Good to know: AVCs are separate from an employee changing their standard contribution rate. If an employee permanently increases their contribution percentage, that's treated as a contribution rate change rather than an AVC.
š How do I submit AVCs?
The easiest way to submit AVCs depends on how you upload your contribution files.
Using a PAPDIS file
If your payroll software exports PAPDIS contribution files, there's usually a dedicated Additional Voluntary Contributions (AVC) column.
Simply include the employee's AVC amount in this field when generating your contribution file.
Using the Penfold contribution template
If you're using the Penfold contribution template, you'll need to create a new column called:
Additionalvoluntarycontributions
Enter the AVC amount for each employee in this column before uploading your contribution file.
š³ How are AVCs processed?
We'll process any AVCs included in your contribution file alongside the employee's regular pension contributions.
As long as the contribution file has been completed correctly, the additional amount will be invested into the employee's pension pot with their standard contributions.
ā ļø Before you upload your file
Before submitting your contribution file, check that:
The employee's regular contribution has been entered correctly.
Any AVC amount has been entered in the Additional Voluntary Contributions column.
The total contribution values are accurate.
This helps make sure contributions are processed correctly the first time.
š§ Need help?
If you're unsure how to record AVCs or need help preparing your contribution file, contact us at autoenrolment@getpenfold.com and we'll be happy to help.