North Yorkshire Pension Fund

Increasing Your Benefits

There are two ways to increase your pension benefits and save a bit extra towards retirement.

Increasing Your Benefits - Additional Pension Contributions (APCs)

If you are in the main section of the pension scheme you can pay additional pension contributions to buy up to £7,316 of extra pension. Any extra pension you buy would be payable each year of retirement on top of your normal pension. If you retire before your normal pension age, the extra pension you have bought will be reduced for early payment.

You can choose to pay regular monthly contributions over a number of complete years or make a lump sum payment. If you pay monthly, the APCs are deducted from your pay before tax.

A lump sum payment can be made through your pay or directly to the North Yorkshire Pension Fund (NYPF). If you make payment direct to the NYPF you would need to arrange tax relief with HMRC

If you are interested in paying APCs please use the online calculator here to calculate the cost. The examples below show the figures the calculator can provide.

Example - Buying £1000 of extra annual pension over 5 years in monthly payments.

You pay £207.80 per month so the total cost over five years is £12,468.

Example - Buying £1000 of extra annual pension in a one off lump sum payment

You pay a one off lump sum payment of £11,170.

If you know how much extra you want to pay per month or as a one off lump sum payment the calculator will tell you how much pension this will buy.

Example - paying an additional £100 per month for 5 years

Additional annual pension bought would be £481.23.

Example - paying a one off lump sum of £5000.00 paying an additional

Additional annual pension bought would be £447.63.

Before you purchase APCs you are required to have a medical examination. You should make an appointment for a medical with your GP and also ask him/her to complete this form. If your surgery charges for the medical you will need to pay for it. The APC contract will only start once the NYPF has received the completed medical questionnaire and your signed election form to start an APC contract.

Increasing Your Benefits - Additional Voluntary Contributions (AVCs)

As a member of the North Yorkshire Pension Fund (NYPF) you can pay AVCS through the Prudential, our in-house AVC provider. Paying in-house AVCs builds up a pot of money to provide additional benefits at retirement. You have your own account and can decide how the money is invested. At retirement you can take some or all of your AVC as tax free cash or use it to buy extra pension. Please see the Scheme Guide and the AVC Guide for more information.

You can pay AVCs if you are in the main scheme or the 50/50 scheme.

AVCs are deducted from your pay before tax. If you are a tax payer you receive tax relief automatically.

For example:
If you pay tax at 20%, £100 of extra saving only costs you £80
If you pay tax at 40%, £100 of extra saving only costs you £60

The amount the value of your pension can increase each year without incurring a tax charge is set by HMRC and is known as the annual allowance (AA). The AA is currently set at £40,000.

Most people will be able to pay AVCs without exceeding the AA limit but if you are considering paying a large amount in AVCs in any year you should check on how the AA applies to you by contacting the NYPF.

For further information, including new AVC applications, please visit the Local Government AVC website. Once you are registered for an AVC arrangement, telephone support is available from the Prudential on 0345 6000 343.