Additional Pension Contributions (known as APCs) allow you to boost the pension you’ll receive from us.
You can purchase an APC to :
The additional pension that you buy will increase in line with the cost of living each year.
How much it will cost
The cost of buying your APC depends on how old you are when you start paying, how much you want to buy, and the length of time you want to buy it over.
You can use the Additional Pension Contributions calculator on the national LGPS Member website to work out how much it will cost you. You can also work out how much pension you can buy from paying different amounts.
How you can pay
You can either pay your APCs over a period of time, or you can buy your APC by paying a one-off lump sum. If you spread your payments, your additional contributions are collected from your pay and will attract automatic tax relief.
If you choose to pay a one-off lump sum, this will normally be deducted from your pay and attract automatic tax relief, but, you can also make a one off lump sum payment directly to us. If you choose this option you'd need to claim any tax relief through your annual tax return, or directly with HMRC.
The maximum amount you can boost your pension by is currently £6,822 from 1 April 2018. This amount is reviewed each year.
Some important points to note
- We may require a satisfactory medical report, at your cost, on receipt of your APC application.
- If you draw your pension early (before your normal pension age) the lost or extra pension you've bought will be subject to a reduction, unless you retire on the grounds of ill health, redundancy or business efficiency. Alternatively, if you draw your pension after your normal pension age, an increase will be applied.
- If you leave before you've completed your payments for your APC, we will work out the proportion of additional pension you're entitled to based on the payments you've made (unless you retire with a tier 1 or tier 2 ill health pension from the same post, when it will be deemed fully paid).
- If you die before drawing your pension, the APC you've bought won’t increase the pension payable to your dependent. This is because buying lost or extra pension will only apply for the pension which you receive.
Find more information on the national LGPS Member website.
Links to useful documents