Active members
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Increasing your pension benefits
As a member of the LGPS, there are two tax efficient ways of increasing your income in retirement.
- Buying Extra Pension in the LGPS – Additional Pension Contributions (APCs)
- Additional Voluntary Contributions (AVCs)
Additional Pension Contributions (APCs)
If you are in the main section of the LGPS you can pay additional contributions to buy up to £8,344 per year (2024/25 rates). This figure will increase each year in line with the cost of living. Any extra pension is payable on top of the normal LGPS benefits. APCs count towards the member’s pension only and do not count towards death in service or survivor's pension benefits.
The additional pension is payable from your state pension age (SPA). Reductions will apply if your pension is claimed before your SPA unless paid on the grounds of ill health as either Tier 1 or Tier 2 pension benefits.
You can choose to pay for the extra pension by spreading the payment of the Additional Pension Contributions (APCs) over a number of complete years or by paying a lump sum (either from your pay or directly to the Pension Fund).
You can use the online Buy Extra Pension calculator found on the national LGPS website to see how much it costs to buy extra pension. An application form is also available there.
Additional Voluntary Contributions (AVCs)
AVCs are a form of investment to build up a separate pension or lump sum or a combination of both.
You can currently pay up to 100 per cent of your pensionable pay, from any usual pay day, into your pension. The 100 per cent excludes standard Local Government Pension Scheme (LGPS) contributions and statutory payroll deductions. You also have the option to adjust your contribution level up or down at any point up to retirement. Read a Guide to AVCs to find out more.
You may have to pay tax if savings into your pension pots go above the HM Revenue and Customs (HMRC) annual allowance limit.
Each fund has chosen its own AVC provider. Details of each fund’s provider are shown below along with details of how to apply.
| Fund | AVC Provider | More information |
|---|---|---|
|
Camden |
Prudential |
Visit Prudential's website or contact the Prudential's Pension Connection Team directly on free phone 0345 600 0343 between 9am and 6pm, Monday to Friday |
| Richmond and Wandsworth |
Prudential |
Visit Prudential's website or contact the Prudential's Pension Connection Team directly on free phone 0345 600 0343 between 9am and 6pm, Monday to Friday |
| Clerical Medical |
Members of the scheme are restricted to the following funds for investment: Balanced Lifestyle, With Profits, Balanced Fund, and Cash. Factsheets can be found on the Clerical Medical website. Clerical Medical contact number: 0345 606 2266 |
|
| Waltham Forest | Clerical Medical |
Clerical Medical contact number: 0345 606 3366 |
You can also increase your income in retirement completely separately of the LGPS using the following options:
- Free Standing Additional Voluntary Contributions (FSAVCs)
- Personal or Stakeholder pensions
You may wish to obtain independent financial advice before taking out any form of additional pension saving.