Buying Additional Pension
From 1 April 2008, LGPS members can buy extra scheme pension in multiples of £250 up to a maximum of £5,000 (in aggregate for those with more than one employment). These are called "additional regular contributions" or ARCs. You have the choice of either providing just a pension for yourself or to provide one for yourself and any survivor on your death - spouse, civil partner, nominated cohabiting partner or child.
Purchase is by way of deductions from your pay and the additional contributions must be paid over a whole number of years and must cease before age 65. You may choose to pay over a shorter period if you wish. Contracts can commence at any time of year and you may have more than one contract.
As contracts are deemed to be paid in full if you are retired on grounds of ill-health or die in service, a medical certificate (available from the Fund) must first be completed by your GP stating that you are in "reasonably good health".
The cost of purchasing additional pension is based on your age, gender, the payment period and whether or not you choose to provide for dependants benefits. You can use these tables from the Government Actuary's Department to calculate the cost of purchasing an additional pension. It is important to remember that, if you choose to buy additional pension for your own benefit only and you die in service, your dependants will not benefit from your contributions and those contributions cannot be refunded.
For more details about buying additional pension please contact us.
You can also increase your pension by buying AVC's or opening a stakeholder pension.
