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Additional Voluntary Contribution (AVC)

An individual who is a member of a company pension scheme can also make personal contributions to a separate pension plan called an AVC plan. They need to seek approval from their employer or the trustees of the scheme to set up their own AVC plan. However, it is possible that their employer already has an AVC plan in place. The total personal contribution limits are determined by the individual’s age and is a percentage of their net relevant earnings, up to an “earnings ceiling” of €115,000 as illustrated below. Any personal contribution to the main company scheme also needs to be considered when calculating any potential contributions to an AVC plan.

Age % of relevant earnings eligible for tax relief

Under 30 years

15%

30 – 39 years

20%

40 – 49 years

25%

50 – 54 years

30%

55 – 59 years

35%

60 years and over

40%