Additional Voluntary Contributions (AVCs)

Association of Secondary Teachers, Ireland AVC Plus Plan - Group Policy No. 608399 - Pension Board No.5511

Cornmarket is responsible for the design, marketing and administration of the Teachers Additional Voluntary Contribution (AVC) Scheme. The Scheme provides teachers with a way to make additional contributions towards their retirement benefits while cutting their tax bill now. Tax relief, at a teacher's higher rate of tax, is allowed on AVC contributions, subject to Revenue regulations. This Scheme offers an additional option to the Notional Service Purchase (NSP) Scheme run by the Department of Education and Science for those who wish to make extra provision for their retirement.

Teachers who take out an AVC typically fall into one or more of the following 3 categories:

1) Missed service (shortfall in Superannuation benefit)

The Teachers’AVC Scheme allows teachers to build up, where appropriate, retirement and/or death-in-service benefits additional to those available from the Superannuation Scheme in a manner that is both efficient and flexible.

2) Early Retirement

Teachers who wish to retire early or avail of the new ‘cost neutral’ early retirement agreement introduced in 2004 can use their AVC Plan to provide additional funds to help make early retirement more affordable.

3) Extra benefits at retirement

Teachers can also use the Teachers AVC Scheme to fund for benefits up to the maximum limits allowed by the Revenue (which are somewhat more generous than the benefits allowed under the Superannuation Scheme) even if they will have no missing years of service at retirement.

The main aim of the Teachers’ AVC Scheme is to provide members with:

  • An extra tax free lump sum (gratuity) at retirement; and/or
  • A fund which may be invested in an Approved Retirement Fund (ARF) which can be drawn down as required during retirement with any balance being disbursed through the teacher’s estate on death; and/or
  • the option to use part or all of their AVC to purchase extra Superannuation benefits through their employer; and/or
  • Benefits under the Notional of Service Purchase (NSP) Scheme.

For more information contact Cornmarket. Tel: 01-4084025 or visit the Cornmarket website

Warning: The value of your investment may go down as well as up.

This is not an ASTI Scheme. The ASTI advises all members to seek full details on any financial scheme they may be considering.

Members should also investigate the NSP and Pension Buyback Scheme as these may be more appropriate, in certain circumstances.

AVC annual report
The annual report prepared by the Trustees of the ASTI AVC scheme for the year ending 31 March 2012 is now available. Any member may obtain a copy by writing to the General Secretary or alternatively by writing to Cornmarket Financial Services, as administrators of the scheme.