As a member of Surrey Pension Fund, you have access to two tax-efficient ways of increasing your pension benefits in addition to the benefits you are already building up:
- Buying additional LGPS annual pension (Additional Pension Contributions)
- Investing into a pension pot of money (Additional Voluntary Contributions)
You can pay Additional Pension Contributions, Additional Voluntary Contributions or both. You can also pay extra outside of the LGPS to increase your retirement income.
There are limits on the amount of extra contributions you can pay. To find out more please watch the video below or contact us.
Which is right for me?
This is a very personal question and one we are unable to advise on. You may wish to speak to a Financial Advisor, who will be able to discuss your options and personal circumstances in more detail.
If you are in the main section of the LGPS, you can pay Additional Pension Contributions (APCs) to boost your pension at retirement or to cover lost pension due to authorised unpaid leave or industrial action.
The APCs you make will buy you an additional amount of extra pension in retirement. You can choose to pay for the extra pension by spreading the payment of APCs over a number of complete years or by paying a lump sum.
You cannot buy extra pension if you are in the 50/50 section of the LGPS.
Here you will find more information on APCs.
To obtain an APC quotation or to apply, access the APC calculator.
When you save Additional Voluntary Contributions (AVCs), you build up a pot of money which is used to provide benefits on top of your LGPS benefits. You choose how much to pay in AVCs and how they are invested. The money will come straight out of your pay and go to the AVC provider who will invest it for you.
AVCs are taken directly from your pay before your tax is worked out, so if you pay tax, you receive tax relief automatically.
Applying for an AVC
Surrey Pension Fund's current AVC provider is Prudential.
If you wish to apply to Prudential for an AVC, or amend an existing AVC contract, please contact Prudential. Alternatively, please see the paying in more section on the LGPS member website or visit Prudential AVC website.
What happens when I retire?
You can either use your AVCs to take a lump sum from the fund when you retire or you can buy an annuity.
Please note: Under previous regulations there have been different ways to buy extra membership or pension. You may have one of these arrangements in place and this will be honoured. These previous options have now been closed and we can't accept any new applications.