Freestanding AVCs

A Free Standing Additional Voluntary Contributions Scheme (FSAVCS) is a retirement benefits scheme established solely to accept contributions from employees to top up benefits provided by their employers' pension schemes.

Setting up a FSAVCS on BrightPay

To access this utility, click Pensions:
 

1) Click Add New Scheme followed by Free Standing AVC Scheme

2) Enter the name of the policy and the reference number provided by the pension company

3) Default Contribution - this is optional. Complete this section if you would like to apply default contributions to an employee who is added to this pension scheme. They can subsequently be changed for each employee record.

4) Tax Relief - if applicable, tick the box to reduce contributions by the basic tax rate

5) If applicable, set a range of earnings on which to calculate percentage-based deductions for the scheme

6) Within the Contact and Payment section, enter the contact details of the FSAVCS pension provider

7) Select the method of payment for remitting the pension contributions to the pension provider. If the method of payment is credit transfer, enter the pension provider's bank account details accordingly. 

8) Click Save

Applying the Pension Scheme to an Employee:

To apply the FSAVC to an employee, click Payroll:


TO ENTER A PENSION DEDUCTION BY AMOUNT:

1) Under Additions & Deductions click the Add icon

2) Under Deductions, select the FSAVC

3) Select the £ sign from the drop down menu and enter the Employee Contribution

TO ENTER A PERCENTAGE-BASED PENSION:

1) Under Additions & Deductions click the Add icon

2) Under Deduction, select the FSAVC

3) Select the % sign from the drop down menu and enter the Employee Contribution percentage amount