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Full Cash Withdrawal Lifestyle How it works: Most of your money is moved into funds with the aim of maintaining the value of your pension pot so it keeps pace with inflation. Typical investor: Members who want to take their pension pot as cash in one lump sum.
AVC Extra is an Additional Voluntary Contribution (AVC) arrangement which is available to members of the Railways Pension Scheme who want to make additional savings towards their pension pot for retirement, aside from what they already contribute to the Scheme.
You can save more for retirement by paying Additional Voluntary Contributions (AVCs). The main AVC arrangement in the Railways Pension Scheme (RPS) is called BRASS. If you go over the limit you can pay into BRASS, you may be able to apply for another arrangement, called AVC Extra.
You can choose to pay Additional Voluntary Contributions (AVCs), known as BRASS, with the aim of increasing your RPS pension benefits. BRASS contributions are used to provide additional benefits on a defined contribution basis (Money Purchase) and are invested into AVC funds provided by the scheme.
AVCs are usually taken from your pay before tax, so anything you pay into BRASS is tax free, subject to certain limits, such as the Annual Allowance limit. That means its a great way to boost your pension and save more for the future.
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There is no doubt that a CARE scheme is likely to be more beneficial than a DC scheme as it provides benefits based on earnings whereas the DC scheme provides only a pot of money which is dependent on the level of contributions and the vagaries of financial markets.