Additional pension contributions
Additional pension contributions to cover lost pension
For unpaid leave like:
- career breaks, or
- unpaid additional maternity leave
members can choose to pay an APC to cover any pension lost.
If they choose to do this within 30 days of returning to work, the cost of the APC is split with:
- 1/3 paid by the member, and
- 2/3 paid by the employer.
If the member chooses to do this after 30 days, they must pay for the APC in full. You can choose to extend the 30 day limit if you’d like.
A member can also pay to cover the pension lost from strike action. But whenever they make that decision, the APC is solely paid by them.
Additional pension contributions to buy extra pension
A member can pay APCs to buy up to an extra £8,344 (2024/2025) of pension. This can be either by regular payments from their pay or as a lump sum.
The member will need to get a medical check if they’d like to buy additional pension.
A member won’t be able to buy extra pension if they’re in the 50/50 section. If they already have a contract to buy extra pension and move to the 50/50 section, the contract must stop.
The LGPS has a calculator to help your employees decide whether to buy APCs. If they want to go ahead, they’ll need to fill in the ‘Buying back pension lost due to absence’ form. They’ll need to give it to you so you can fill in the pensionable pay details. The member will need this figure to put into the calculator. They should then print out the results. Once they’ve sent their application, you’ll need to check it and authorise any costs. A copy of both forms needs to be sent to us.
