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Nilgosc


Additional Regular Contributions for Councillors

NB. This option is no longer available for new contracts 

You can pay additional regular contributions to purchase additional pension either for yourself only or for yourself plus any dependants, providing you pass a Good Health medical.

How much can I buy?

You can buy annual pension, either for yourself or for yourself plus any dependants, in multiples of £250 up to a maximum of £5,000 per annum in aggregate.

What period do I pay over?

Contracts may commence at any time during the year but you must pay over a whole number of years not exceeding the period to normal retirement age (age 65).  You may not commence buying additional pension on or after your 64th birthday.

When is the additional pension payable?

The additional pension is payable at retirement.

How much will my additional pension cost?

The cost is calculated using tables provided by the Government Actuary’s Department (GAD). The cost depends on the following factors:

  •  your age at the date the contributions start;
  •  the period you wish to pay over;
  •  the amount you are buying in multiples of £250;
  •  whether you are buying additional pension for yourself or yourself plus any dependants;
  •  whether you are male or female.


What if I stop contributing before the end of the payment period?

If you stop contributing, leave or retire before the end of your payment period you will receive a pension based on the contributions made up until the date they ceased. If you retire early on ill-health grounds the contract is deemed to have been paid in full.

What if I am on unpaid leave?

If you are on unpaid leave or child-related leave you must continue to make the contributions to buy additional pension.

Can I make a lump sum payment?

No. The minimum period which you can contribute over is one year.

What happens if I draw my pension before age 65?

If you draw your pension before age 65 (and not on ill-health grounds) then your additional pension will be reduced to take account of the early payment. The reduction for early payment does not apply to any dependant’s cover which you have chosen to buy.

What happens if I draw my pension after age 65?

If you draw your pension after age 65, your extra pension will be increased to take account of late payment. The increase for payment after age 65 does not apply to any dependant’s cover which you have chosen to buy.

Why do I have to have a medical and do I have to pay for it?

If you retire on grounds of permanent ill-health your extra pension will be deemed to have been paid for in full. Therefore, NILGOSC needs to know that you are in reasonably good health and unlikely to retire on ill-health grounds before age 65 before it will agree to your purchase of additional pension. You must pay the cost of the Good Health medical.

Will the extra pension go up in value?

Yes. A contract taken out before 1 April 2012 will increase by the Retail Prices Index both during the term and at retirement.  Contracts taken out from 1 April 2012 will increase by the Consumer Price Index (CPI).  

Could the monthly payments change?

It is possible that the monthly payments could change in future. The actuary may change the rates from time to time and this change will affect both new applicants and members who are already buying additional pension.

If the rates change, the new rates will apply from 1st April following the change and we will let you know the change beforehand.

What are the additional dependants’ benefits that are provided if I choose to buy additional pension for myself plus dependants?

If you die in service an additional dependant’s pension of 37.5% of the rate of additional pension you were purchasing is payable to an eligible spouse, civil partner or nominated co-habiting partner. A pension is also payable to eligible children at the rate of 18.75% (of the rate of additional pension you were purchasing) if there is one eligible child and 37.5% if there are two or more eligible children shared equally between them. If there is no eligible spouse, civil partner or nominated cohabiting partner, then the additional child’s pension is 25% of your extra pension and if there is more than one eligible child then 50% of the your pension is split equally between the eligible children.

Can I give up some extra pension at retirement to buy additional lump sum?

Yes, it is possible to give up additional pension at retirement to provide extra lump sum subject to tax limits.

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