Additional Pension Contributions (APCs)
Additional pension contributions are a way of topping up your pension directly with the City & County of Swansea Pension Fund – you pay in a set amount, and that tops up your pension by a set amount. You can either use APCs to buy extra pension simply because you want to, or to catch up following a break where you have not paid contributions, by buying back lost pension. There is a maximum amount you can boost your pension by (currently £7,026 but will change each year in line with the cost of living.)
Buying Extra Pension
Benefits
- APCs allow you to build up additional pension within your Local Government Pension Scheme (LGPS) pension. This can then be used to provide you with additional retirement benefits.
- The contributions you make are tax efficient as you can pay the money in directly from your salary before tax. You can normally pay for this extra pension either regularly over a complete number of years directly from your pay or via a lump sum (either from your pay or directly to the City & County of Swansea Pension Fund). The minimum period of time you can spread payment of APCs over is 12 months.
- You can choose to stop paying APCs at any time by notifying us in writing. You will be credited with the extra pension that you have paid for at the time of ceasing payment.
Contribution level
The cost depends on many things – your age, gender, payment period, and how much extra pension you wish to buy. You can pay monthly or make a one off payment.
For example, Christine is 38 and wants to buy an extra £2,000 of yearly pension. This would cost her:
- £15,944.40 as a one off payment
- £658.24 per month if paid over 2 years
To find out how much an APC will cost, please visit the APC calculator
Taking your money
If you choose to retire early (before your Normal Pension Age) the extra pension you have bought will be reduced for early payment. If you choose to draw your pension after your Normal Pension Age any extra pension you buy is increased because it is being paid later.
On retirement, you can choose to exchange some of the extra pension you have bought for a tax-free cash lump sum in the same way as your main LGPS pension.
If you die in service then no extra benefits from your APC contract will be payable. This is because the amount of extra pension you purchase is for you only.
If you decide to enter into an APC arrangement and elect to pay the APC’s on a monthly basis you will be required to undergo a medical examination at your own expense and provide a certificate of reasonable health before being allowed to buy extra pension.
Buying Back Lost Pension
This is a way of catching up on lost pension following a break, such as unpaid parental leave. See the section on Absence from Work for more information on what absence qualifies.
Strike action and pension
You can buy back “lost” pension if for example you have been on strike, but your employer would not share the cost. You would pay all the costs involved.
If you are buying back “lost” pension through an APC then you don’t require a certificate of reasonable good health.
How to apply
To find out how much an APC will cost, please visit the APC calculator
Once you have inserted your details in the calculator and obtained a quote if you decide to proceed you will need to complete the application form on the calculation page and return it to us at the following address:
Pension Section
Civic Centre
Oystermouth Road
SWANSEA
SA1 3SN
