Increasing my pension

Our in-house AVC plan is administered by Pru. If you decide to start an AVC plan, you decide how much you wish pay, and where you would like your money invested. That contribution amount will be deducted from your pay each month (before tax) and paid across to Pru who are then responsible for investing the money. 

Pru do charge an annual management fee. You would need to contact Pru for more information in relation to this.

Taking your benefits 

The amount of benefits you will receive depends on how much you've contributed and how well your investment has performed. There are various options available to you when choosing to take your AVC benefits:

• Take the full amount as a tax-free lump sum (as long as your total lump sums from the LGPS do not exceed 25% of the combined value of your benefits including your AVC plan).
• Buy additional LGPS pension.
• Transfer the AVC plan out to a personal pension plan.

You cannot take your AVC without taking your LGPS pension at the same time, and similarly, you cannot contribute just to an AVC without also contributing to the LGPS at the same time. 

Advantages of an AVC plan

• Flexibility on how much you pay.
• Tax efficient.
• Tax-free cash (up to 25% across the AVC and your LGPS benefits).

Additional information

LGPS AVC Lump Sum Calculator  

Pru Group Plan Website  - select the Gloucestershire scheme from the drop down to receive information specific to our Fund.

If you wish to buy additional benefits through the Fund, you can do this by buying an APC.

There are two types of APC that can be bought

'Extra' Pension: These are in addition to your main scheme benefits and work through either a one-off or regular deduction from your salary being paid to us in exchange for a set amount of additional benefits. You can work out your options using the LGPS's Buy Extra Pension Calculator .

'Lost' Pension: These relate to pension you did not build up due to being absent as a result of industrial action, authorised unpaid leave or unpaid additional child leave. You normally need to do this within 30 days of returning to work. You can use the LGPS's Buy Lost Pension Calculator  to work out the cost to you of doing this.

Taking the benefits

You can access your LGPS at any time from the age of 55 to 75. Early repayment charges will be applied if you were to retire earlier than your Normal Pension Age. Find out more on our estimates and retiring page.

Advantages of an APC

• Flexibility on repayments; through salary or directly through a lump sum.
• Tax efficiency; on what you pay in through your salary.
• You will be buying an annual pension that is guaranteed for life.
• The younger you are, the less they cost.

Additional information

If you wish to buy extra pension by paying a one-off lump sum, you can do so via your pay or by making the payment directly to the Fund. Whilst it is also possible to pay directly to us, you will need to arrange tax relief directly with HMRC as the contributions are not being deducted from your pay. 

There are no charges associated with taking an APC. The cost of annual pension varies depending on your age and gender. However, you will receive an early repayment reduction to your annual pension if you decide to receive your benefits before Normal Pension Age.

If you choose to spread the cost of your APC and your agreement is 12 months or over, then we will require a satisfactory medical certificate from your GP. Please contact us if you require this. (Please be aware that you're responsible for any fees payable to your GP for the medical certificate.)

Please note these final two points:

• If you bought additional pension, this will not be covered as part of a death grant or survivors pension. The APCs are for yourself only.
• You must be in the main section of the scheme to apply for APCs. Members of the 50:50 section of the scheme are ineligible.