Ill health retirement- What if you are paying extra?

This section looks at what happens if you are paying extra and you qualify for ill health retirement.

Buying extra pension by paying Additional Pension Contributions (APCs) or Shared Cost Additional Pension Contributions (SCAPCs)

If you are buying extra LGPS pension either by regular payment or you made a one-off lump sum payment, when you draw your pension this will include the extra pension that you have paid for and it will not be reduced for early payment. In addition, if you qualify for the type of ill health pension where your benefits are enhanced (Tier 1 and Tier 2 ill health pensions), you will be credited with all the extra pension that you set out to buy, even if you have not completed full payment for it.

You can choose to exchange some of the extra pension you have bought for a cash lump sum in the same way as your main LGPS pension.

Buying extra LGPS pension by paying Additional Regular Contributions (ARCs)

When you draw your pension you will be credited with the extra pension that you have paid for and it will not be reduced for early payment. In addition, if you are paying ARCs when you retire and qualify for the type of ill health pension where your benefits are enhanced (Tier 1 and Tier 2 ill health pensions), you will be credited with all the extra pension that you set out to buy, even if you have not completed full payment for it.

You can choose to exchange some of the extra pension you have bought for a cash lump sum in the same way as your main LGPS pension.

If you are buying extra years in the LGPS (Added Years)

If you retire on ill health grounds whilst paying for extra years, you will normally be credited with the whole extra period of membership that you set out to buy, even if you have not completed full payment for it. This extra membership is worked out using your final pay when you leave and is included in your membership built up in the scheme before April 2014. For further information on how this is worked out see the section how is your pension calculated.

If you are paying Additional Voluntary Contributions (AVCs) arranged through the LGPS (in-house AVCs)

Payments into in-house AVCs will stop when you retire. The ways that you can use your AVC fund are detailed in the section AVC options.