Additional Pension Contributions (APC)

The benefits

• APCs buy you a further pension in the scheme. You can buy extra pension to a maximum of £8,344 pa (2024/25) less any extra pension bought, or being bought, by APCs or ARCs (Additional Regular Contributions).
• At retirement, you may be able to give up some of the extra pension for more lump sum (there are limits that apply to this)
• At the end of each scheme year the extra pension you have bought will be calculated and this amount will be added to your benefits and increased each year along with your other benefits.

What if I die - Is there any extra death cover?

No. If you die there are no benefits payable in respect of your APCs because the amount of extra pension you buy is for you only.

What it costs and how you pay

Costs vary depending on your age, gender, how much extra pension you buy and the payment period you choose.

You can pay either:

• Regular contributions over a number of years but you must pay at least £10 a month); or
  a lump sum
• Payments by regular contributions are subject to review and may change during the payment period
• If you pay tax, deductions from your salary get automatic tax relief.

If you stop paying or leave employment

• You can stop paying the contributions at any time by giving us one month’s notice, in writing. You will be credited with the extra pension you have paid for up to the date your contributions stop.
• If you retire because of ill health and are awarded an enhanced tier 1 or tier 2 pension, you will receive the entire extra pension you chose to buy (without reduction), even though you haven’t finished paying for it. For this reason we need your GP to complete a medical form.
• If you leave or retire for any reason other than tier 1 or tier 2 ill health you will be credited with the extra pension you have paid for up to your date of leaving. If the extra pension is paid before your state pension age or if later, age 65, it will be reduced because of early payment.
• If at the time you leave employment you are only entitled to a refund of your contributions, your APCs will also be refunded.

If you're interested

• Get a quote using our APC calculator. This will show you the cost of buying the additional pension.
• Print and sign the application form (from the APC calculator) and send it to us at WYPF, PO Box 67, Bradford, BD1 1UP (Remember that if you choose to pay regular contributions, we can't accept payments of less than £10 per month.)
• We'll check your application and send you a medical form which you need to return within one month of getting your GP's signature. If your age changes in the meantime, you must ask us for a new application form.