This option is called Additional Pension Contributions (APCs). You can buy extra pension by paying APCs regularly, over a period of time, or you can buy extra pension by paying in a one-off lump sum. On 1 April 2014, a cap of £6,500 per annum was put in place to limit the amount of annual pension that you can purchase in the LGPS. This cap has been inflation proofed every year since then. The current cap is shown on the online APC calculator.
This option replaces the Additional Regular Contributions option that was available between 1st April 2008 and 31st March 2014.
Under this option, it is not possible for you to purchase any extra benefits for your dependants.
You can start a contract at any time that suits you and the payment term will be a complete number of years unless you opt for the one-off lump sum option.
The amount it costs depends on how much extra pension you want to buy, the age you start paying the extra contributions and the length of time you want to pay them for.
The cost of purchasing APCs will be based on your age, gender and the payment period you’ve chosen and will be calculated in accordance with guidance issued by our Government Actuary's Department (GAD).
On retirement, the total main scheme pension benefits awarded will be increased by the amount of the additional pension you have purchased under the APCs contract.
For a quotation on this option please click here to visit the online APC calculator.
Some important things to note:
The contribution you choose to pay may or may not stay the same. The Government Actuary’s Department may determine that the rates need to change in the future. If so, you will be required to pay the revised rates (you will of course have the option to cease paying).
If you decided to retire and take the benefits before your normal pension age, the APCs you have purchased will suffer an actuarial reduction in line with the guidance on early retirement.
If you decide to retire after your normal pension age the APCs will be increased in line with the guidance on late retirement.
You can stop paying the extra contributions, and should inform both your employer and the Pension Section of your decision. Your record will then be credited with the amount of additional pension you have purchased to the date you stopped paying.
Once your pension is in payment the additional pension will be increased each April with reference to the appropriate inflation index.
If you leave the Gwynedd Pension Fund to go to another LGPS pension fund and transfer your main scheme pension rights, you can also transfer the APC. You should contact your new employer’s pension and payroll section as soon as possible, in order to avoid a break in contributions.