If you are buying extra LGPS pension by paying APCs or SCAPCs

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Columns of coinsWhen you draw your pension, this will include the extra pension that you have paid for.

However, if you are paying Additional Pension Contributions (APCs) or Shared Cost Additional Pension Contributions (SCAPCs) when you retire and qualify for the type of ill health pension where your benefits are enhanced (Tier 1 and Tier 2 ill health pensions), you will be credited with all the extra pension that you set out to buy, even if you have not completed full payment for it.

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 and/or SCAPC contract will cease (if you are still paying these extra contributions when you draw your benefits) although you will be able to take out a new APC contract (provided you are at least one year before your Normal Pension Age if you want to pay the APCs by regular contributions) or, subject to your employer’s discretions policy, a new SCAPC contract.  

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.

You can choose to exchange some of the extra pension you have bought for a cash lump sum in the same way as your main LGPS pension.