What happens if I pay extra and elect for the 50/50 option?
If you move from the main section of the Scheme to the 50/50 section, the following rules apply:
If you have:
- entered into a contract to buy extra pension by making Additional Pension Contributions (APCs) [1] or entered into a Shared Cost APC contract with your employer,
these contracts must cease when you elect to move to the 50/50 section [2].
Also, when you are in the 50/50 section of the Scheme, you cannot elect to commence payment of an APC contract, nor can you elect to commence payment of a Shared Cost APC, unless it's to purchase an amount of pension lost during certain periods of leave of absence on no pay or periods on no pay due to a trade dispute (see below).
If you have:
- entered into an APC contract to purchase the amount of lost pension due to a trade dispute, or
- entered into a Shared Cost APC to purchase the amount of lost pension during a period of unpaid authorised leave of absence or during a period of unpaid additional maternity or adoption leave or unpaid shared parental leave, or
- entered into a contract to buy-back some previous part-time service, or
- prior to 1 April 2014 entered into a contract to buy extra pension (ARCs) or,
- prior to 1 April 2014 entered into a contract to count pre 6 April 1988 membership for a surviving eligible cohabiting partner's pension, or
- prior to 1 April 2008 entered into a contract to buy extra LGPS membership (added years)
these contracts continue when you elect to move to the 50/50 section and the contributions under the contracts must be paid in full.
If you have:
- entered into an AVC arrangement or a Shared Cost AVC arrangement with your employer,
these continue when you elect to move to the 50/50 section, unless you choose to terminate the contract. You can elect to commence payment of an AVC or Shared Cost AVC when you are in the 50/50 section of the scheme.
In the 50/50 section of the Scheme you can commence payment of:
- a Shared Cost APC to purchase the amount of pension lost during a period of unpaid authorised leave of absence or during a period of unpaid additional maternity or adoption leave or shared parental leave, or,
- an APC to purchase the amount of pension lost during a trade dispute or,
- an AVC or Shared Cost AVC.