Paying extra - AVCs and APCs
Option 1 - Buying extra pension - additional pension contributions (APCs)
You can buy extra pension by paying APCs regularly, over a period of time, or as a one-off lump sum. The maximum amount of additional pension you can buy currently is £6,500.
The amount it costs (a cash amount NOT a percentage of pay) 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. You cannot start an APC contract whilst in the 50/50 section of the scheme.
APC’s only allow you to buy extra pension for yourself and not for additional dependants’ benefits. Please note you will have to submit a medical certificate, obtained at your own expense, to apply for APCs.
APCs are based on working to your Normal Pension Age which is linked to your State Pension Age. If you take your benefits before this age, your APCs will be reduced.
Visit www.scotlgps2015.org/apc and read the section on "Buying extra pension" then complete the form. Monthly contributions are subject to review by the scheme actuary and may change in the future.
Option 2 - Additional Voluntary Contributions (AVCs)
The second option is choosing to make Additional Voluntary Contributions (AVCs) to a separate investment pot out with Lothian Pension Fund. Your AVCs can be taken from age 55 onwards separately from your main LGPS benefits but these may be subject to tax. They can also be taken at retirement in a number of ways including as part of your lump sum. Read our guide on AVCs on the forms and guides section of our website at www.lpf.org.uk/forms. We have two companies that provide AVCs. Click on the links below for more information.
• Prudential website - further information and apply online (complete form under Getting started section on their website)
• Prudential: 0800 032 6674 - 9am to 6pm weekdays
• Standard Life website - further information only (complete at www.lpf.org.uk/forms)
• Standard Life: 0345 279 8831 or 0345 60 60 047
You can only make additional contributions from your regular pay. When you retire you must stop your AVCs at least one month before your retirement date.
Though pension saving is often tax-efficient, you should always consult an independent financial adviser as Annual and Lifetime Allowance limits apply to the amount of pension you can build up before you may have to pay tax.