A NEW software programme developed by the actuaries and consulants Mercer should go some way towards assisting company employees in deciding whether to top up their pensions with Additional Voluntary Contributions (AVCs). The software, called the Mercer AVC Planner (MAP) allows all the necessary factors income, existing level of benefits, retirement income and retirement date expectations to be calculated in order to establish the necessary AVC investment.

It is estimated that just 12 per cent of occupational pensions scheme members invest in AVC's, the main reasons being lack of information and awareness. By being faster and more efficient this software programme can cut down on both the cost and the time needed for counselling employees, says Mercer, and should, ideally be made available in personnel departments.

The other advantage of this computer programme will be to prevent the wholesale overselling of AVC's which is known to happen both in the private and public sector. Employees who are directed to overfund their pensions through AVC's by unscrupulous, or simply incompetent, pension salesmen risk at worst some serious problems with the Revenue Commissioners at retirement time, or at best, an investment that was unnecessary since their occupational and state benefits were going to meet their retirement expectations. The programme can be used to supply accurate financial information upon which informed decisions about pension provision can be made.

MAP is available from Mercer Ltd. at (01) 478 2866.