Is there any update on the LGPS's additional pension contributions (APCs)?

blizeH

A little while ago I applied to join the ARC system but have just been told that it's too close to 1st April and they cannot process my application in the current system.

Looking around online, there doesn't seem to be any concrete information about the new Additional Pension Contribution (APC) scheme which is quite surprising since it's only a week away!

This is a long shot I know, but is there anyone here 'in the know' so to speak, and if so will it still be worthwhile?

Thanks

jem16

blizeH wrote: »

A little while ago I applied to join the ARC system but have just been told that it's too close to 1st April and they cannot process my application in the current system.

Looking around online, there doesn't seem to be any concrete information about the new Additional Pension Contribution (APC) scheme which is quite surprising since it's only a week away!

This is a long shot I know, but is there anyone here 'in the know' so to speak, and if so will it still be worthwhile?

Thanks

I expect it will just be the same as purchasing Additional Pension Benefit in the Teachers' scheme. You are able to purchase an amount of pension up to £5000 usually in bundles of around £250. You say how much you want to purchase and how you wish to pay, ie monthly or by a lump sum. You're then told how much it will cost.

APB seems to be more or less the same as ARCs if you choose the monthly option.

Drp8713

We have some information, you can buy up to £6500, and that limit will increase each year with inflation.


You cannot now buy dependents benefits along with your own.


You can buy through regular payments or through one-off lump sums.


But the actual factors, which determine how much it will cost is not yet available

blizeH

Thank you very much both That's good news if it remains mostly the same then - and with a higher limit too! Will probably still stick to my original £5k target, but it's nice to have the option of potentially paying more if I'm in a position to do so. Very nice bonus with the lump sums too! Might just do that instead of the regular payments as it's much more flexible.

blizeH

They've just sent out guidance at work about the new pension changes, but still no news on the APCs! Hopefully will get an update early next week.

blizeH

2 months later and I still haven't heard anything

Has anyone had any information about the APCs?

xylophone

2 months later and I still haven't heard anything

Has anyone had any information about the APCs?

http://lgps2014.org/apc/

darren72

Thanks for the link to the new details.

I'm trying to work out whether this is really much different to the old ARC scheme. It looks pretty much the same to me...

hyubh

darren72 wrote: »

I'm trying to work out whether this is really much different to the old ARC scheme. It looks pretty much the same to me...

It's very similar, and indeed, the 'ARC' terminology was still used in the published draft version of the new regulations. The main difference is that you can buy extra pension with a single lump sum instead of a regular payment through payroll, if you so wish (hence the name change).

darren72

Thanks - It still looks a great way of topping up a pension, and if I am not mistaken a lot better than any other private pension available.

Triumph13

The one big difference is that it seems you can no longer buy any surviving spouse's pension. This may make it a very bad deal indeed in some cases!