How can you increase your pension benefits?
Most of us look forward to a happy and comfortable retirement and in order to have that little bit extra during your retirement years, you may wish to consider paying extra contributions. As a member of the LGPS you have access to two tax efficient ways of increasing your pension benefits in addition to the benefits you are already building up. These are Additional Pension Contributions (APCs) and Additional Voluntary Contributions (AVCs).
Additional Pension Contributions (APCs)
If you are in the main section of the LGPS, you can pay additional pension contributions (APCs) to boost your pension at retirement or to cover lost pension due to authorised unpaid leave or industrial action. The APCs you make will buy you an additional amount of extra pension in retirement. You can choose to pay for the extra pension by spreading the payment of the Additional Pension Contributions (APCs) over a number of complete years or by paying a lump sum.
For more information on APCs, click here. To obtain an APC quotation or to apply, please click here to access the APC calculator.
Additional Voluntary Contributions (AVCs)
When you save AVCs, you build up a pot of money which is then used to provide additional benefits to your LGPS benefits. The Fund's current AVC provider is Prudential, however up until the year 2000 we used both Prudential, and the Equitable Life Assurance Society (however funds have since transferred to Utmost Life & Pensions). The money is deducted directly from your pay before your tax is worked out, so, if you pay tax you receive tax relief automatically. If you choose to pay AVCs under the LGPS, the AVCs are invested separately in funds managed by the AVC provider. You have your own personal account and you decide how the money in your pot is to be invested. You can elect to pay an AVC if you are in either the main or 50/50 section of the LGPS.
If you wish to apply to Prudential for an AVC, or amend an existing AVC contract, please click here to access Prudential's contact details. Alternatively, please click the links below for more information:
Additional Voluntary Contributions (AVCs)
Utmost Life & Pension AVC information (for AVCs formerly held with Equitable Life Assurance Society)
Ways to increase your retirement benefits outside of the LGPS
