Additional Pension and AVCs

In the LGPS you have access to two tax efficient ways to make additional pension savings. 

Additional Voluntary Contributions (AVCs)

Additional Voluntary Contributions (AVCs)

AVCs are tax efficient contributions made directly from your salary. Your contributions build up an additional pension pot to your pension account.

If you pay AVCs via the LGPS you may elect to take up to 25% of your AVC fund as a tax-free lump sum provided the lump sum doesn't exceed £268,275 (2020/21 figure). Or use some, or all of it to provide a regular retirement income, in addition to your pension account. Under the current regulations you will need to do this by your 75th birthday.

Our AVC provider is the Prudential. Please contact them directly to discuss the range of funds available to members.

Please note that the arrangements for AVCs are a matter between you and the provider, LPP is not responsible for the performance of the funds. Professional advice should be sought from Prudential prior to selecting an investment.



Additional Pension Contributions (APCs)

Additional Pension Contributions (APCs)

There may be times when you may need to consider adding to your pension in the LGPS. This could be because you joined later in your career or have had a career break and want to buy extra pension or maybe you have lost pension due to an unpaid absence. 

Paying Additional Pension Contributions (APC) either regularly, over a number of complete years, or as a one-off lump sum will allow you to add extra pension or make up for lost pension. The maximum amount of annual pension you can buy using an APC is £7,194 (2020/21 rates). This figure will increase each year in line with the cost of living. Buying lost pension is important if you have pre-1st April 2014 membership and wish to protect your benefits in a number of different circumstances.

Please see the flowchart on the LGPS website where you can obtain quotes and get application form.

APC Calculator

 



Buying back lost pension

Additional Pension Contributions (APCs) can be used to buy back lost pension in the event of:

  • Any unpaid additional maternity or adoption leave
  • Unpaid shared parental leave
  • Strike leave
  • Bereavement leave
  • Unpaid authorised leave

Other than for strike leave, if you make the election within 30 days of returning to work (or such longer period as your employer may allow) then your employer will cover 2/3rds of the cost. Otherwise, you will pay the full cost to buy the lost pension.

Buying back lost pension guidance

 



Looking after your pension

Watch the video for more information on how you can increase or decrease your payments.

Click here for more LGPS videos