I would like to increase my benefits - Leicestershire Member Self-Service

Additional Pension Contributions (APCs)

In the LGPS you can buy up to £8,344 additional annual pension (though this amount increases each year in line with the cost of living). To buy extra pension, you can make additional payments into the scheme’s Additional Pension Contribution (APC) arrangement. You can buy extra pension by paying APCs regularly over a period of time, or you can pay in a one-off lump sum. The amount it will cost depends on:

How much extra pension you want to buy
The age you start paying the extra contributions
The length of time you want to pay them for

Buying APCs does not provide additional dependants’ benefits. Also, it is not possible to buy additional lump sum. However, at retirement you can convert some of your additional pension to provide a lump sum ( at a rate of £1 of additional pension converted to £12 lump sum, up to a permitted maximum).

Approved leave of absence

You can also pay an APC to replace lost pension rights: for example, following a period of unpaid child-related leave or an approved leave of absence (including additional purchased leave). In these cases, your employer will share the cost with you.

HM Revenue and Customs limits

Like all pension contributions, Additional Pension Contributions are subject to HM Revenue and Customs (HMRC) limits that are called annual allowance and lifetime allowance. Increasing your pension, particularly if you pay a one-off lump sum payment, may result in a tax charge. Please see our annual allowance page for more details and a link to a calculator.

Get a quote for an APC

If you are interested in paying an APC, please complete and return the form below:

Additional Pension Contributions (APCs) quote request form PDF, 58 KB

Please note that if the APC is for a period of approved leave of absence, then you will also need someone in your employer's payroll office to complete part of the form. To confirm that this has happened, the form MUST be signed by an appropriate member of staff (i.e. a payroll administrator).

Additional Voluntary Contributions (AVCs)

You can now pay a proportion of your pensionable earnings in any single month, into an Additional Voluntary Contribution (AVC) plan. AVCs are a flexible, convenient and tax-efficient way to boost your retirement income. As a member of the Leicestershire County Council Pension Fund you can pay AVCs through the Prudential, our in-house AVC provider. If you normally pay tax you will qualify for immediate tax relief on your payments. That is to say, if you are a basic rate tax payer, an extra £100 per month will only cost you £80, with the £20 normally paid to the taxman going into your pension instead. If you are a higher rate tax payer, this £100 will only cost you £60, with £40 going to your pension instead of the taxman.

In an AVC plan:

You will have a choice of funds to invest in.
You can change or stop contributions to suit your circumstances.
You do not need medical clearance to start paying AVCs.

When you retire, you can choose how to use your fund. AVCs are very flexible when deciding what you want:

You can use the AVC fund to increase your monthly pension income
You can use it for a combination of tax free cash and/ or pension (subject to Inland Revenue limits, see below)

HM Revenue and Customs limits

Like all pension contributions, Additional Voluntary Contributions are subject to HM Revenue and Customs (HMRC) limits that are called annual allowance and lifetime allowance. Increasing your pension, particularly if you pay a one-off lump sum payment, may result in a tax charge. Please see our annual allowance page for more details and a link to a calculator.

Further information about Addtional Voluntary Contributions (AVCs)

For more details, please visit Prudential's website.

In addition, there is further information about AVCs on the national Local Government Pension Scheme website.