How can I pay more to increase my benefits?

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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, which are a tax efficient way of topping up your income when you retire.

There are a number of ways you can provide extra benefits, on top of the benefits you are already looking forward to as a member of the LGPS.

You can improve your retirement benefits by paying:

You can combine any of these options.

Are there any limits on how much I can pay to increase my pension benefits?

There is no overall limit on the amount of contributions you can pay (although there is a limit on the extra scheme pension you can buy). However, tax relief will only be given on contributions up to 100% of your UK earnings (or, if greater, £3,600 to a “tax relief at source” arrangement, such as a personal pension or stakeholder pension scheme).
Additionally, under HM Revenue and Customs tax rules there are controls on the pension savings you can have before you become subject to a tax charge – most people will not be affected by these controls.

I am already buying extra membership and/or paying ARCs. Can I buy extra benefits?

Even if:
  • you are buying extra years of LGPS membership (added years) under a contract to do so which you entered into before 1 April 2008, and/or
  • you are purchasing additional pension through an Additional Regular Contribution (ARC) contract which you entered into before 1 April 2014 paying ARCs


you can still pay Additional Pension Contributions (APCs) to buy extra LGPS pension (APCs) up to a maximum of £8,344 (including any additional pension being bought by ARCs) and/or pay Additional Voluntary Contributions (AVCs) or Free Standing AVCs (FSAVCs), or contribute to a concurrent personal pension plan or stakeholder pension scheme, if you wish.