How do AVCs impact my Annual Allowance?

The annual Allowance is currently £60,000 unless you are subject to a reduced Annual Allowance, further details on this are included in the Guide to AVCs.  It is the amount you pay into the AVC Plan that count as pension savings to be measured against the Annual Allowance together with the increase in value of your TfL Pension Fund pension.

Your pension savings are measured against the annual allowance and we include details each year in your benefit statement.  If your pension savings exceed the Annual Allowance then you may be liable for a tax charge so when considering AVCs you will need to consider whether when added to your main Fund benefits you would exceed the Annual Allowance.