In this learning zone we explore ways in which we can increase our NHS Pension Scheme benefits with further saving opportunities.
There are various ways in which you can increase your NHS Pension benefits.
Additional Pension (AP)
This is a flexible option whereby you can effectively buy additional NHS Pension income. You can do so through a lump sum contribution or by through a regular monthly saving. Remember, the minimum additional pension you can buy is £250 and the maximum is £5,000.
The additional pension is index-linked both before and after retirement and you can choose whether the additional pension is just for you or for your surviving dependents too.
Additional Voluntary Contributions (AVCs)
You can build up a pension fund outwith the NHS Pension Scheme in one of the schemes nominated by the NHS Scheme managers. This fund can then be used to purchase an additional income for you at retirement.
Although added years contracts finished for new applicants from 31st March 2009 (contracts where you could voluntarily pay in more to the NHS Pension scheme and effectively buy more years service), for those contracts still in force, these will be honoured as long as you stay in the 1995 Section of the Scheme and you do not have a break in membership of more than 12 months.