Additional pension contributions (APC)

What are APCs?

APCs are additional pension contributions, which you can use to buy extra pension within the LGPS. They can be made as a one-off lump sum or regular payments.  

The additional contributions are added to your pension account and adjusted (or revalued) in line with inflation at the end of each year – providing you with additional pension benefits when you retire. 

Shared cost means the cost of buying the “lost” pension is shared between you and your employer. These are similar to an APC but your employer may require you to take a medical assessment (at your own expense) to confirm you’re fit enough to complete the payments. 

Please speak with your employer for more information about Shared Cost APCs. 

You can use the calculator on the LGPS website to calculate your pension with any additional contributions you want to make. To do this, just follow the steps below.  

1 Fill in your personal details in the boxes on the page and state whether you wish to pay additional contributions via regular payments or a lump sum.  

2 State how much you wish to pay, or how much extra pension you wish to buy (as well as how often and for how many years, if you choose to make regular payments).   

If you choose to pay with a lump sum, you will need to state whether you wish to pay via your payroll or directly to your fund. If you plan to pay via your payroll, you will get tax relief on the APCs you make, whereas if you pay the lump sum directly, you’ll need to claim tax relief from HMRC yourself.  

Please note, the calculator allows you to add in the amount of APC that will be paid by your employer (if this has been agreed with them) but only include it if you have this in writing.  

3 Click the Calculate button to calculate your pension. The results will show the:   

• Total extra pension you’ll receive each year, if it’s taken from state pension age.  
• Years of agreement and extra pension bought each year (if you’re making regular payments).  
• Cost to you before tax relief (for regular payments or a lump sum).   
• Cost to your employer.  
• Total cost (for regular payments or a lump sum).  
• Your Normal Pension Age.  

If you want to make any adjustments (like to compare paying a lump sum with making regular payments), just click the Back button and complete the steps again. 

• You must be in the main scheme of the LGPS. You cannot pay APCs if you are in the 50/50 section. 
• The minimum period over which APCs can be paid is 12 months, unless you are making a one-off lump sum payment. 
• APCs contribute to your own pension – they do not count towards any benefits for your dependents (like spouses or children).  
• APCs count towards the maximum pension you can build up tax-free in a year. Most people will not exceed this limit but those that do will need to pay a tax charge. See our website for more details on annual allowance. 
• If you choose to buy extra pension, your additional contributions could change, if the factors used to calculate the cost of buying the pension are changed by the Government. If this happens, we will notify you of the change in contribution amounts. 
• If you leave your employment, opt out of the LGPS or retire before your agreed payment period, you will only be credited with the extra pension you have bought up to that date.