These pages are for employer use only. Member information can be found on the home page.
An employee and/or employer can make extra contributions towards an employee’s pension. There are many ways this can be done.
Additional Pension Contributions (APCs)
Employees have the option to buy extra pension of up to £6,822 per year. If they have more than one LGPS employment, this is the maximum altogether.
The employee can buy the extra pension as a one-off lump sum, or pay monthly.
The APCs do not include a pension for a survivor in the event of death.
More information about the cost of APCs can be found on the LGPS website.
AVCs will stop if the member joins the 50/50 section of the scheme.
Please note: If an employee is buying back lost pension, the application form must be submitted to you as the employer. However, if an employee is buying additional pension, the application form must be sent to us.
Additional Pension Contributions (APCs) – Purchased by the employer
As an employer, you can use APCs to purchase additional annual pension on behalf of an employee. If this is something that you offer, this must be outlined in your discretions policy.
The employee must be a member of the LGPS, and the maximum you can buy is £6,822. You may also buy an APC for a former employee who has left within 6 months, on the grounds of redundancy or business efficiency.
Once you have decided how much APC you will buy, the cost of that amount will depend on the age and gender of the employee. You will have to buy the APC as a one off lump sum.
You can get an idea of how much you will have to pay by using the additional benefit calculator on the LGPS website.
Additional Voluntary Contributions (AVCs)
Our current in-house provider of AVCs is Prudential.
Some employees may have AVCs with our previous provider, Equitable Life.
If an employee wishes to start an AVC with Prudential they need to contact them directly. They can call them on 0800 032 6674 or visit their website.
Once the member has set up the AVC, you will be sent details including how much payroll need to deduct from the employees wages, the start date and how to make the payments.
Equitable Life AVCs are no longer available, but some existing employees may have policies with them. They can be contacted on 0870 607 6791 quoting reference ‘E0096 / GV13’.
Other additional contributions contracts
Some employees may also be buying extra pension under the old regulations, including:
- Added Years (buying additional membership)
- Additional Regular Contributions (ARCs)
- Additional Survivor Benefit Contributions (ASBCs)
- Preston part-time buy-back
The above continue from 1 April 2014 under the same rules as before, and on the terms of the contract when they were originally taken out. Added years and ASBC contracts will continue to be deducted as a percentage of the 2008 definition of pensionable pay.
If an employee wishes to cease their added years or ARCs contract, you must provide us with their written request.