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Document What is Additional Pension?

Additional Pension (AP) is a flexible way of increasing your Scheme pension. It allows you to choose to buy extra annual pension, in today's terms, and see clearly how much the purchase will cost. Under this option you elect to buy a set amount of annual pension for an agreed amount of contributions that you can choose to pay either as a lump sum or as a regular payment for an agreed period of time.

The minimum amount of AP you can buy in the 1995/2008 Scheme is £250 and the maximum amount is £5,000. AP is protected against inflation by being index linked both before and after retirement. You can choose whether your AP is just for you or also provides benefits for your dependants in the event of your death.

The 2015 Scheme has a higher limit of £6,500 (this may change year to year) and because they are two separate schemes, the limits operate independently, with the result that if you have already bought £5,000 AP in the 1995/2008 Scheme you could potentially buy a further £6,500 if you move to the 2015 Scheme.

For further information please see the Additional Pension factsheet on our website.
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