Topping up your Pension
If you want to make additional pension savings to increase your pension benefits, there are two ways to do so. These are Additional Voluntary Contributions (AVCs) and Additional Pension Contributions (APCs).
Please be aware if you are considering making additional pension contributions, that you do not exceed the Annual Allowance and Lifetime Allowance tax limits. For further information visit the web page about tax and pension benefits.
Additional Voluntary Contributions (AVCs)
AVCs allow you to pay more to build up extra savings for retirement. Shropshire County Pension Fund’s ‘In-House’ AVC provider is The Prudential. To find out more about AVCs, please visit www.pru.co.uk/lgsite.
Alternatively, call The Prudential Retirement Specialist Team on 0800 028 1493. Lines are open Monday to Friday, 9am-6pm. They can’t give you advice but they can give you further factual information, chat to you about your personal situation and help answer questions you may have about AVCs.
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 a one-off lump sum. The maximum amount of additional pension you can buy is £6,755 (this figure will increase each year in line with the cost of living).
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.
To find out how much you can increase your LGPS pension by paying Additional Pension Contributions (APCs), an online calculator is available to show how much it would cost you to buy more pension. Follow the below link to view the calculator.
Shared Cost APCs – SCAPCs
The scheme also has the option of Shared Cost APCs which cover the amount of pension “lost” during periods of unpaid additional Maternity, Adoption and Paternity leave or periods of unpaid authorised leave of absence.
Shared cost means that if you want to cover such a period, and provided you make an election to buy the “lost” pension within 30 days of returning to work, the cost of buying the “lost” pension is shared between you and your employer, with your employer meeting two thirds of the cost.
Shared cost APCs can be a one off lump sum or a regular amount over a period of time.
Additional Pension Contributions Calculator (This link will redirect you to the national LGPS members website)