In this section we look at the ways in which you can increase your NHS Pension benefits.
There are three ways to increase your NHS Pension benefits:
1. Buying Additional Pension (AP)
This method gives you the opportunity to simply buy more NHS Pension. You can do this through regular contributions of through a lump sum. The amount of NHS Pension you can buy is limited to between a minimum of £250 per year and maximum of £5,000 per year. AP is inflation proofed both before retirement and after retirement and there is an added flexibility of being able to provide its benefits to you dependents when you die.
2. Money Purchase Additional Voluntary Contributions (AVCs)
Your NHS Pension Scheme manager can select pension providers for you that you can contribute into on a regular basis. This will then provide a seperate pension fund to your main NHS Pension benefits. This AVC will build up over time and allow you to buy an income at the point of retirement (the amount of income will depend on the size of the fund and interest rates at the time).
3. Early Retirement Reduction Buy Out (ERRBO)
Your NHS Pension benefits are paid out without reduction if taken at your Normal Pension Age. Because the new 2015 NHS Pension Scheme has a normal retirement age linked to State Pension Age a new arrangement has been established known as ERRBO. It allows you to take out a contract with your employer to pay more into the NHS Pension Scheme on a regular basis and in return allow you to retire up to 3 years before your Normal Pension Age without the pension reduction that would otherwise have applied.