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Document Are there any limits on the amount of Added Years or half cost Added Years that can be purchased?

Yes. The limits depend on the type of contract.
 

Full cost Added Years

Full cost Added Years contracts were available up until 31st March 2008. This type of contract allowed a member to purchase additional years and days membership by paying additional contributions.

The terms of the contract depended upon the member's contributions at the time and their predicted amount of membership at retirement.  Also, the total amount of membership (predicted and additional membership) could not exceed 40 years at age 60.
 


Half cost Added Years

You may be eligible to buy Added Years at half the normal cost, if you took a refund of NHS contributions for a period of membership prior to 6th April 1978.  This type of contract allows a member to purchase their membership back at half the cost.

The terms of the contract depend upon the member's contributions at the time and their predicted amount of membership at retirement.  Also, the total amount of membership (predicted and additional membership) could not exceed 40 years at age 60.

 

Please note: from 1 April 2008 HMRC changed the contribution limits from 15% maximum employee contributions to employee contribution limited to 100% of pensionable pay.

The Regulations were re-worded to take away the reference to 15% and simply refer to the 9% or 10% maximum that could be bought:
 
If the standard membership contribution is 5% of pay, the maximum additional contribution is 10% of pay.
 
If the standard membership contribution is more than 5% of pay, the maximum additional contribution is 9% of pay.
 
Due to this change, a member may contribute more than 15% of their pay and their existing contracts can continue to be paid regardless of any increases to standard contributions.
 

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