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APC Frequently Asked Questions

How does my additional pension build up?

At the end of every Scheme year the proportion of additional pension that you have bought in that year is added to your pension account.  The value of pension in your pension account is revalued each year to keep up with cost of living increases.  Once in payment the additional pension will get the same increase as the rest of your pension and go up in line with Pensions Increase orders each year.

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

If you stop contributing, leave or retire before the end of the 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.

Could the monthly payments change?

It is possible that your monthly payments could change in the future.  The actuary may change the rates or the government could change the method of increase.  These changes would affect both new applicants and members who are already buying additional pension.  These changes will normally apply from 1 April following the change and we will let you know the change beforehand.

If I choose to buy additional pension now, can I buy more at a later date?

Yes, as long as the total amount does not exceed £6,644 per year (2017/18 limits).  It should be remembered that the cost of any later purchases of additional pension will depend on your age at that time.

Can I give up some additional 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.

 

Will purchasing additional pension change my 85 year rule date?

No.  Purchases of additional pension have no effect on your 85 year rule date.