Question on AVC contribution percentages.

[fingers mcginty]

Hi folks, I am putting in 6% of my wage into a DC pension scheme of which my employer puts in 9%. As i fall into the 40-49 age bracket i see the max percentage of earnings that can be contributed to the pension is 25%. Question is does the employer's percentage have a bearing here ie what's the max percentage i could put in as AVC's ? Is it 10% ~ 25 - (6+9) or is it 19% ? ~ 25-6
Hope that makes sense ....

 

[Gordon Gekko]

No.

Because it’s a DC scheme, the employer contribution is ignored for the purposes of the percentage limit.

It it was a PRSA, the position would be different.