Xerox Final Salary Pension Scheme - deferred member logo

What benefits will I get?

When you draw your AVC benefits, you cannot buy extra pension from the Xerox Final Salary Scheme but you may use all or part of your AVC fund to provide any of the following options:

  • A one-off lump sum (part of which may be taxed) – see below for details of the different lump sum options
  • A transfer to another pension arrangement, which may offer options such as income drawdown
  • An annuity from an insurance company of your own choice.


Pension Commencement Lump Sum (PCLS)
When your AVC benefits come into payment, 25% of the AVC fund may be paid as a PCLS. Similarly when you retire under the Xerox Final Salary Pension Scheme, approximately 25% of the value of your pension under the Xerox Scheme may be taken as a PCLS.

If you start to draw your AVC benefits at the same time as you retire under the Xerox Final Salary Pension Scheme and the Trustee Directors' agree, the AVC benefits and the Scheme benefits may be combined for the purposes of working out the PCLS and so in these circumstances it may be possible to use more than 25% of your AVC fund to provide a PCLS.

The PCLS, which is currently payable tax-free, may not exceed 25% of the Lifetime Allowance set by HMRC.

Uncrystallised Funds Pension Lump Sum (UFPLS)
You may take the whole of your AVC fund at any time after age 55 as a one-off cash sum – up to 25% of which is paid tax free and the remainder is taxed as income.

Independent financial advice recommended
We recommend that you take independent financial advice on how to use your AVC account.

Go to Contacts >> Useful links for further information on obtaining independent financial advice.

AVCs – Benefits