Salary Sacrifice Shared Cost AVCs
| Title | Salary Sacrifice Shared Cost AVCs |
|---|---|
| Council Resource | Finance and Corporate |
| Service Area | Personnel Services |
| Aims and Objectives | To outline the potential savings for the Council and employees of introducing salary sacrifice shared cost Additional Voluntary Contributions (AVCs). The scheme is only available for Local Government employees who are members of the local government pension scheme (LGPS). Members of the Scottish Teachers’ Pension Scheme (STPS) do not have this choice. The Council is an employer member of Strathclyde Pension Fund, which offers employees a defined occupational pension scheme, through the LGPS where members are currently allowed to contribute to a standard AVC scheme and receive Income Tax relief on their contributions. An AVC plan is a separate pot of pension savings that run alongside the main LGPS scheme allowing members to build up extra retirement benefits. AVCs are paid solely by employees. On retirement, an employee can access the benefits through a range of options including receiving 100% tax free capital sum. This is as per normal tax requirements and rules on annual and lifetime tax allowances. |
| Conclusion | The policy applies to Local Government employees who are members of the LGPS. Consultation took place with the Trade Unions after Corporate Management Team discussions. The policy applies to Local Government employees who are members of the LGPS. There is nothing noted in the policy that shows that there is the likelihood of a negative impact the proposed changes should be positive for all employees effected. As the gender split for the Council (31st march 2023) is 73.7% female and 26.3% male the policy will potentially imp[act more females. However it is recognised that in the current financial climate not all employees will have disposable income to invest in the scheme. This may however, over time change and the scheme would grow as more employees focus on preparing for their retirement. The introduction of this scheme would provide another option for employees to prepare for their retirement. Performance is reported to the relevant Resource Management Teams (RMT), the Corporate Management Team (CMT) via the Workforce Monitoring Information report and Elected Members. Reports are usually provided on a quarterly and annual basis. Approved for implementation by Corporate Management Team on 22nd August 2024. |
| Completion date | 22/8/24 |
| Contact Email address | equalities@southlanarkshire.gov.uk |
| Area | Council Wide |