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The contracts also differ in the method of payment of contributions. Under an FSAVCcontract, these will be paid by Direct Debit to the provider whereas contributions under anSTSS AVC contract will be paid by deduction from salary with bulk remittances byemployers to the Prudential. Full income tax relief on contributions under an STSS AVCcontract will be granted automatically in the same way as tax relief is granted on mainscheme superannuation contributions. Contributions under an FSAVC contract will onlyattract income tax relief at the basic rate of tax. Higher rate income tax relief, whereappropriate, has to be claimed from the Inland Revenue and generally granted through theindividual’s PAYE code number.If I enter a contract to improve my retirement benefits, what happens if I give up teachingbefore the end of the contract?If you enter an APB contract with SPPA, you will be credited with the contributions paid upto the time you give up teaching. You will, however, have the option of completing thecontract by payment of a lump sum and so being credited with the full benefit which was tohave been bought in under the contract. In some cases because of the amount of the lumpsum required to complete the contract or because an employer is offering prematureretirement with enhancement, it would not be to your advantage financially to opt tocomplete the contract. If you enter an FSAVC contract or STSS AVC contract with thePrudential, your contributions would cease but the accumulated funds from yourcontributions would continue to be invested and continue to share in any gains made bythe investment medium you had chosen.If you were to take up other employment, there would be the option of a transfer valuerepresenting the value of your benefits in the STSS or the value of your STSS AVCaccumulated fund being transferred to your new employer's pension scheme. If you hadless than 2 years service you might be entitled to a refund of your superannuation andSTSS AVC contributions, subject to statutory deductions for income tax and contributionsequivalent premium. In the case of an FSAVC contract, you would be able to continue tocontribute to it provided that you joined your new employer’s pension scheme.If I enter a contract to improve my retirement benefits what happens if I have to retirebecause of ill-health or if I die in service?If you enter an APB contract with SPPA you must certify that your health should not preventyou fulfilling the contract. If subsequently you retire because of ill-health or die within 12months of entering the contract, the contract will be revoked and your contributionsreturned. If retirement or death in service occurs after the first year of the contract, it willbe deemed to have been completed.If you enter an AVC contract, the accumulated funds from your contributions would beavailable to provide pension benefits taxable as earned income for you or, in the event ofdeath, for your dependants.Can I have an APB contract and an AVC contract?Yes, it is possible to have both types of contract in force at the same time. You can receivetax relief on contributions up to 100% of your salary.I have an AVC contract. Do I have to wait to age 60 before I can draw any benefit?No, if you have an FSAVC contract you can receive your benefits on retirement at any timefrom age 50 onwards. If however you have an STSS AVC contract with the Prudential, youcan only draw your benefits when your STSS benefits become payable. That is at age 60,unless you retire earlier because of ill-health or as a result of premature retirement.96September 2012