The Additional Pension (AP) facility allows you to buy extra NHS Pension income to help fund your retirement.
The Benefits of AP
AP allows you to increase you annual NHS Pension in blocks of £250. The maximum you can increase you pension by is £6,500 per year. After you retire, the amount of pension that you have bought will then increase by inflation throughout your retirement in the same way as your main NHS Pension. AP is payable at your Normal Pension Age and therefore if it is taken early it would be reduced. It is possible to apply the AP to yourself or to increase any pension paid to your dependants when you die.
Costs of AP
The cost will be told to you at the outset of the contract however it will be based upon your age and the amount of AP you wish to purchase. The cost of AP can be paid for via a lump sum or through regular monthly instalments. It is possible to take out multiple AP contracts, just as long as you do not exceed the maximum AP you can buy (currently £6,500).
Any contributions you make to AP are taken into account for Annual Allowance and Lifetime Allowance purposes in the same way as your main NHS Pension benefits.