Paying extra
If you pay extra pension contributions in the LGPS and retire due to ill health, special rules may apply:
- Additional voluntary contributions (AVCs): If you’re paying AVCs , there are no special rules. Your choices are the same as you retire in normal health. You can find out more about your options in the Taking your pension and paying extra section.
- Additional pension contributions (APCs): If you’ve bought APCs or shared cost APCs, your ill health pension includes the extra pension you’ve paid for. We won’t reduce your extra pension for early payment. For a tier 1 or 2 ill health pension, you’ll get credit for the extra pension you intended to buy, even if you didn’t pay for it fully. You can swap some extra pension for a cash lump sum just like with your main LGPS pension.
- Additional regular contributions (ARCs): Your ill health pension includes the extra pension bought with ARCs. We won’t reduce your extra pension for early payment. For tier 1 or 2 ill health pensions, you’ll get credit for the extra pension that planned to buy, even if you didn’t finish paying for it. You can swap some extra pension for a cash lump sum like with your main LGPS pension.
- Buying extra years in the LGPS (added years): If you’re buying extra years, your ill health pension usually includes credit for the extra period of membership you intended to buy, even if you didn’t pay fully. This extra membership counts as pre 1 April 2014 membership, and we base your benefits on your final pay when you leave the LGPS. See How your pension is worked out for more details.
