Additional Voluntary Contributions (AVCs)

If you want to plan for better retirement benefits from the Fund than normal, you can increase your benefits by making additional voluntary contributions (AVCs) during your working career.

What about Additional Voluntary Contributions and tax implications?

  • With effect from 1 March 2016, a total deduction from taxable earnings is allowed of the member’s deemed contribution to recognised retirement savings (this includes company contributions less the funeral and disability premiums) plus the members own contributions, (including AVCs) which are limited to the lesser of 27.5% of the greater of remuneration or taxable income or a monetary cap of R350 000.
  • These limits apply to the total amount contributed towards retirement savings, including retirement annuities etc.

Where’s the catch?

There are no catches, however you may under no circumstances:

  • withdraw any AVCs you have made,
  • borrow against your AVC balance.

How to make AVCs!

  • Decide how much you would like to contribute extra, and when.
  • Complete a DB 10 or DC 10 (or get one from HR).
  • Return the form to your HR department.

HR will forward the form to the Fund and payment will be made as per your request.

How do you keep track of AVCs?

You will receive an update on your AVCs with your annual information statement from the Fund.

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