Additional pension contributions (known as APCs) allow you to boost the pension you’ll receive from us.
You can purchase an APC to either buy extra pension simply because you want to, or to buy pension for periods where you haven't paid contributions.
The payments you make attract tax relief and the additional pension 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
- the length of time you want to buy it over
How you can pay
You can choose to pay your APCs over a period of time, or you can buy your APC by paying a one-off lump sum. The maximum amount you can boost your pension by is currently £7,579 from 1 April 2023. This amount is reviewed each year.
Your employer collects your contributions from your pay if you choose to spread the cost of an APC.
When we receive your APC application, we require a satisfactory medical report from your GP. Please be aware that you're responsible for any fees payable to your GP for the report. You can find the 'APC medical clearance form' attached to this page.
A one-off lump sum payment is usually deducted from your pay. You can also make a one-off lump sum payment directly to us. If you choose this option, you'll need to claim any tax relief through your annual tax return, or directly with HMRC.
Some important points to note
There are some rules to be aware of if you take payment from your pension early or late. If you leave before you finish your APC contract or if you die before taking your pension:
- The lost or extra pension you've bought will be reduced if you take your pension early (before your normal pension age), unless you retire on ill health.
- We'll apply an increase if you take your pension after your normal pension age.
- If you leave the LGPS before you complete your APC payments, we'll work out the amount of additional pension you've bought based on the payments you've made. The exception to this would be if you retire with a tier 1 or tier 2 ill health pension from the same post, when your contract would be deemed fully paid.
- An APC doesn’t increase the pension payable to your dependent if you die before taking your pension. This is because buying lost or extra pension only applies to the pension you receive.
Use the APC calculators
The national LGPS Member website has two calculators to help you work out how much it will cost to take out an APC. Make sure you read the terms and conditions available in the application section of your chosen calculator before going ahead with a purchase:
'Buy extra pension' calculator
Use this calculator if you wish to boost your benefits at retirement.
Use the extra pension calculator
'Buy lost pension' calculator
Use this calculator if you wish buy back the pension that you've lost during a period of unpaid leave.
Use the lost pension calculator
Links to useful documents