Frequently Asked Questions about Additional Pension Contributions
What will happen to my Additional Pension Contributions (APCs) if:
If you have more than one job in which you are a member of the Scheme you would have to specify which job’s pension account any extra pension you are buying is to be credited to.
If you wish to pay Additional Pension Contributions for each job, you would have to make a separate election for each job.
If you choose to retire early and draw your benefits before your Normal Pension Age, or you are retired on redundancy or business efficiency grounds before your Normal Pension Age, the extra pension you have bought will be reduced for early payment.
If you draw your benefits on flexible retirement, you can, if you wish, draw all the extra pension you have paid for too, although it will be reduced for early payment.
If you take flexible retirement, your APC contract will cease (although you will be able to take out a new APC contract).
If you are awarded an enhanced ill-health pension (either Tier 1 or Tier 2) by your employer, the remaining amount of any APC or SCAPC contract you are paying at that time is deemed to have been paid in full and is credited to your pension account in the scheme year (1 April to 31 March) your pension is paid.
If you draw your pension after your Normal Pension Age, the amount of any extra pension you have bought will be increased as its being paid later.
If you die in service then no extra benefits from your APC contract will be payable. This is because the amount of extra pension you purchase is only for you.
If you die after leaving the Scheme but before retirement and your benefits are held in the LGPS for payment (deferred benefits), then a lump sum of 5 times the extra annual pension you paid for will be payable.
If you die after starting to draw your pension and you are under age 75 at the date of death, a lump sum of 10 times your extra annual pension minus any extra pension already paid to you may be payable.