APCs allow you to purchase additional guaranteed pension within the LGPS on top of your standard benefits. Unlike AVCs, APCs are not affected by the performance of financial markets.
You can pay for this additional pension either through regular contributions deducted from your salary or by making a one-off lump-sum payment. APC contracts must normally be paid over a minimum period of 12 months and can continue up to your Normal Pension Age. If you choose to pay over a number of years, you will be required to complete a medical declaration form before the contract can be accepted.
Contributions deducted through payroll automatically receive tax relief. If you make a lump-sum payment directly to the Pension Fund, you will need to claim any tax relief yourself from HM Revenue & Customs (HMRC).
To obtain an estimate of the cost of purchasing additional pension, you can use the LGPS APC Calculator:
Select "Calculate Extra Pension Contributions" to obtain a quotation. If you wish to proceed, complete the application form generated by the calculator and return it to Gwynedd Pension Fund.
Important Information
- APCs provide a guaranteed pension that increases in line with inflation before and after retirement.
- The member normally pays the full cost of the APC unless the employer has agreed to contribute through a Shared Cost APC arrangement.
- The cost of purchasing additional pension is calculated in accordance with guidance issued by the Secretary of State for the Department for Communities and Local Government and may be reviewed at any time.
- If you retire before your Normal Pension Age, the additional pension may be reduced for early payment.
- If you are awarded a Tier 1 or Tier 2 enhanced ill-health retirement pension, any outstanding APC contract will normally be treated as though it had been paid in full.
- APC benefits apply to your own pension only and do not provide additional benefits for dependants if you die while the APC contract is still active.
- You may stop paying APCs at any time and will retain the additional pension that you have purchased up to the date the contract ends.