Paying extra
Special rules can apply if you’re paying extra pension contributions in the LGPS, and you retire with an ill health pension.
Additional voluntary contributions (AVCs)
If you’re paying additional voluntary contributions (AVCs) in the LGPS and you retire with an ill health pension, there are no special rules. You’ll have the same choices as you would have had if you took your pension in normal health. You can find out more about your options in the Taking your pension and paying extra section.
Additional pension contributions (APCs)
You may have bought additional pension by paying additional pension contributions (APCs) or shared cost APCs. When you take an ill health pension, it will include the extra pension that you’ve paid for. The extra pension will not be reduced for early payment. If you qualify for a tier 1 or 2 ill health pension, you’ll be credited with the extra pension that you set out to buy, even if you’ve not paid for it all.
You can choose to swap some of the extra pension for a cash lump sum in the same way that you can with your main LGPS pension.
Additional regular contributions (ARCs)
When you take an ill health pension, it will include the extra pension that you’ve bought by paying additional regular contributions. The extra pension will not be reduced for early payment. If you qualify for a tier 1 or 2 ill health pension, you’ll be credited with the extra pension that you set out to buy even if you’ve not paid for it all.
You can choose to swap some of the extra pension for a cash lump sum in the same way that you can with your main LGPS pension.
Buying extra years in the LGPS (added years)
If you’re paying for extra years when you take an ill health pension, you’ll normally be credited with the extra period of membership that you set out to buy. This will be the case even if you’ve not paid for it all.
The extra membership is included in your membership built up before 1 April 2014. The extra benefits you’ll get are based on your final pay when you leave the LGPS. See the section on How your pension is worked out for more information.
