Before deciding whether you wish to make a lump sum AVC please ensure you read the Paying Additional Voluntary Contributions and Annual Allowance pension guides as these include important information about paying AVCs and the tax considerations you need to be aware of. How and when you can request to pay a lump sum AVC from your bonus depends on who you work for.
BAE Systems
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For most BAE Systems employees annual bonuses are paid in March or early April (before the end of the tax year on 5 April). Therefore any AVCs deducted will count towards the current 2025/26 tax year.
- Applications for all members must now be submitted by completing the Application to pay your annual bonus into your pension form via the Employee Service Centre (ESC) portal before 26 February 2026. Search for the form in the ESC portal using 'Application to pay your annual bonus into your pension' as the search term.
- BAE Systems employees can find more information and Frequently Asked Questions in the 'Paying your annual bonus/incentive into your BAE Systems pension' article on the ESC portal.
- To access the portal you must be logged into a BAE Systems device, on a BAE Systems network. If you do not have access to the ESC portal please call 0208 068 2868 to help progress your request (a form will be provided if you are unable to access the portal).
- If you are a Digital Intelligence employee, the application process for MMT - BAE Systems Retirement Savings Plan members is via the One Reward hub. If you are a Digital Intelligence employee and a member of the Defined Benefit (DB) scheme please call the ESC team on 0208 068 2868 and request an application form.
MBDA
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For MBDA employees annual bonuses are paid in February for level 1 to 4+ and ECP employees, and in March for employees level 5 and above. Therefore any AVCs deducted will count towards the current 2025/26 tax year.
- You must submit your request via the Launchpad benefits portal before 31 January 2026 for level 1 to 4+ and ECP employees, or before 28 February 2026 for employees level 5 and above.
RBSL
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For RBSL employees annual bonuses are paid in March or early April (before the end of the tax year on 5 April). Therefore any AVCs deducted will count towards the current 2025/26 tax year.
- Please contact AVCchangeform@baesystems.com to request an application form. Completed forms must be returned by 26 February 2026.
Airbus
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For Airbus employees annual bonuses are paid mid-April. Therefore any AVCs deducted will count towards the 2026/27 tax year.
- If you are a Defined Benefit (DB) member of the Airbus Section of the BAE Systems Pension Scheme you can download a form from the Group Schemes and Benefits G Site or you can request a form by emailing ukpensions@airbus.com. Please email your completed form to ukpensions@airbus.com before 24 March 2026.
Roxel
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For Roxel employees annual bonuses are paid mid-April. Therefore any AVCs deducted will count towards the 2026/27 tax year.
- If you are a Defined Benefit (DB) member of the Royal Ordnance Pension Scheme please contact uk_payroll@roxelgroup.uk.com to request an application form. Completed forms must be returned by 28 February 2026.
If you want to make a payment directly to the Mercer Master Trust
If you miss your respective deadline noted above, or if you want to wait until after you have received your bonus, or you want to pay an amount that’s more than your monthly pay, you are able to make a direct payment into the Mercer Master Trust (MMT) arrangement.
You will need to complete and return the Direct AVC Payment Form to Scottish Widows, along with your payment, before 21 March 2026. If your payment and form are received after this date your contribution will count towards the 2026/27 tax year. This payment will be for the gross amount, and it will be your responsibility to reclaim the tax relief from HMRC by completing a self-assessment tax return.
For Defined Benefit (DB) members, if you or the Company have not already made at least one contribution to the MMT - BAE Systems Additional Retirement Savings Plan, please contact pensions.policy@baesystems.com before 7 March 2026 so that an MMT account can be set up ahead of you making a direct payment.