Members of the LGPS can choose to pay extra contributions to boost their future pension. There are several ways to do this: some are funded solely by the member, and others are supported by you, the employer.
Additional pension contributions (APC)
Members paying into the main section of the LGPS can pay additional contributions, which will buy them additional pension. Members can pay these contributions:
- by instalments over a chosen period
- by a single lump sum
Key features
- instalments are a fixed amount, not a percentage of pay
- you are not required to contribute to standard APCs
- contracts must stop if the member moves to the 50/50 section
- costs may change if updated by the Government Actuary's Department (GAD) - we will notify you and the member before new rates take effect each 1 April
Members can use the buy extra pension calculator on the LGPS website to get:
- a quote
- the required forms
- terms and conditions
The member will also need to ask their GP for a general health certificate.
What you need to do
The LGA HR and payroll guide provides detailed guidance on setting up and managing APCs.
If a member buys extra pension through instalments
- Ensure the member's forms are fully completed and sent to us.
- We will confirm the deduction amount and contract dates with both you and the member.
- Set up the payroll deduction and report monthly contributions to:
- us via the APC tab on i‑Connect
- Pensions Investments via your monthly contribution return
- Notify us when the member makes the final payment.
- Stop the contract if the member takes flexible retirement.
If a member buys extra pension with a lump sum
- Ensure the member's forms are fully completed and sent to us.
- We will provide the member with payment instructions.
- Once we have received payment, we'll update the pension record.
- The APC will appear on the member's next annual benefit statement.
- If the member's pay does not cover their contractual contribution
- If the member is on certified sick leave without pay, continue the contract as though they are receiving full pay.
- Notify us if this happens.
Shared cost additional pension contribution (SCAPC)
SCAPCs can be one of the following:
Discretionary
You must have a policy on when and how you will contribute to APCs.
Compulsory
When a member takes authorised unpaid leave and chooses to buy back the lost pension, read the absences page for guidance.
Additional voluntary contributions (AVC)
AVCs allow members to pay a percentage of their pay into a separate investment pot. The Oxfordshire Pension Fund AVC provider is Legal & General.
- send interested members to the Legal & General website
- Legal & General will notify payroll when deductions should begin
- members can contribute up to 100% of pensionable pay, including overtime and additional hours
