UKAEA Pensions
Additional contributions
The normal contribution you must pay as a member of the Combined Pension Scheme is 5% of pensionable earnings (PNISS members pay 7.5%) but you may choose to pay additional contributions to increase your retirement income above the normal amount provided by the United Kingdom Atomic Energy Authority pension scheme.
You can contribute up to 15% of your pensionable pay to the United Kingdom Atomic Energy Authority pension scheme or you can contribute up to 100% of your gross annual income to the Additional Voluntary Contribution (AVC) arrangement with the Prudential (but you will still be required to pay 5% of your pensionable pay to the CPS unless you have reached the maximum service limit). Tax relief will only be given on contributions up to your gross taxable earnings in a year.
If choosing to pay extra to the CPS your additional contributions can be used to secure added years of service in the United Kingdom Atomic Energy Authority pension scheme.
Additional contributions to either the CPS or AVC arrangement qualify for full tax relief in the same way as the normal contributions you are required to pay to the United Kingdom Atomic Energy Authority final salary pension scheme.
The main features of Added Years and the AVC Scheme are as follows:-
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