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INCREASING BENEFITS
Why should I consider increasing my 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 it is worth considering paying extra contributions, which are a tax efficient way of topping up your income in retirement.
It should be noted that extra contributions can also be paid to increase the level of death benefits if you die in service.
Are there any limits on how much I can contribute to increase my pension benefits?
HM Revenue & Customs (HMRC) rules allow you to pay up as much as 100% of your earnings with full tax relief to provide benefits within prescribed limits. As your normal LGPS contributions are between 5.5% and 7.5% this leaves a significant proportion of your taxable earnings that you can invest in additional contributions.
Members of the Local Government Pension Scheme (LGPS) have the following choices to consider when deciding how to increase their benefits via a pension arrangement:
