Added pension
If you’re considering topping up your Police or Firefighters’ pension, we’ve put together the key information you should know before making a decision.
Contents
How does it work?
You can buy added pension by paying additional contributions, either as a one-off lump sum or regular payments. You’ll also get tax relief on your additional contributions.
To calculate your added pension amount, we use factors set by the Government Actuary’s Department (GAD). Just bear in mind that these can change from time to time.
Your added pension is put into your pension account and adjusted (or indexed) in line with inflation each year.
If you’re a member of the Firefighters’ scheme, a separate ‘added pension account’ will be set up for you alongside your main one. Your added pension will then go into this separate account.
When you retire, your extra pension is paid to you annually for the rest of your life, at the same time as your main scheme benefits.
Please note
If you’re a Police scheme member, you have the option to buy added pension to increase your pension income only or to increase your pension income and survivor’s pension for your dependents (like spouses or children) by paying more contributions.
How much can I buy?
There are limits on the amount of added pension you can buy in a year, which are set by HM Treasury. Currently, the maximum amount of added pension you can buy in a scheme year (1 April to 31 March) is £8,572.40 (2024/25).
How do I pay?
You can choose to pay additional contributions either by making regular payments from your salary or by paying a one-off lump sum. To help you pick the right option, there are some specific rules and criteria you should know for your scheme.
Regular payments
If you choose to make regular payments, they will be taken automatically from your pre-tax salary each time you are paid. The payments can be a percentage of your pay or a fixed amount each month.
Please note
You can only choose regular payments if you are aged 59 or under at the start of the scheme year when you pay.
When will the payments start and stop?
Your payments will start on the date you choose in your application and continue until the end of your contract.
Can I change or cancel my payments?
No, you can’t change your contribution amount during a scheme year but you can start a new added pension contract from the beginning of the next scheme year.
You can cancel your regular payments at any time but will need to send a written notice to us via our contact form or through the post. However, if you opt out of the Police scheme or exceed the overall limit of added pension for the scheme year (£8,032), your regular payments must stop.
If you don’t complete all your payments, you will receive a portion of the extra CARE pension you originally chose to buy.
You can choose to start paying regular payments up to at least two years before your Normal Pension Age (which is currently age 60).
When will the payment start and stop?
Your first payment will be taken out from your salary on the first pay period after your Fire and Rescue Authority is notified about your decision to make additional contributions.
Your payments will stop at the end of the scheme year (31 March) or on a specific date set out in your application – whichever is earlier. They must stop if you opt out of the Firefighters’ scheme or if you will exceed the overall limit of added pension for the scheme year (£8,032).
Can I cancel my payments?
You can cancel your regular payments at any time but will need to give a written notice of your decision. Your contributions would stop from the next pay period after they receive your notice.
You can choose to stop your regular payments or continue to make them based on your full pensionable pay if:
- Your pay reduces or stops because of the regular payments, and / or
- You are treated as if you earn assumed pensionable pay (the hypothetical pay you would have received if your actual pay is reduced because of an absence from work).
If your pay is reduced because of child-related leave, you can adjust the payment amount based on your actual pay for that period. When your pay goes back up, you can ask your Fire and Rescue Authority to collect your missed payments. Your authority will give you all the information about how to make these catch-up payments, along with any specific time limits.
Please note
If you don’t want your regular payments to be taken out from your pensionable pay, your Fire and Rescue Authority may agree to a different payment method. Please speak with them for more information.
Lump sum
If you want to pay by lump sum, there are some important points to know first. You can only pay by lump sum:
- Once in a scheme year.
- If you have been paying into the 2015 Police scheme for a continuous period of at least 12 months.
- If you are aged 59 or under at the start of the scheme year when you pay.
If you were employed as a firefighter within the last 12 months, you may have the option of paying by lump sum. It’s a good idea to speak with your Fire and Rescue Authority to make sure you’re eligible for this.
If you choose to pay by lump sum, you must state how much you want to pay in your application. This must not be less than any minimum amount set by your Fire and Rescue Authority. Please speak with your authority for their policy on this.
Once you have chosen to pay by lump sum, you must pay it within three months. If you don’t pay it within the three months, you will need to make a new application.
How do I apply?
To apply for added pension:
- Contact us via our contact form. We will send you an application form along with a quote that estimates the cost of buying added pension.
- Complete the application form and return it to us via our contact form or through the post.
- We will set up your payments and let you know when it’s done.
For Firefighters’ scheme members, there are a few more extra steps when applying.
If you want to buy added pension, you should give a written notice to your Fire and Rescue Authority (they may have a special form for this purpose). As buying added pension is your ‘election’ (a voluntary decision you make), you should give written confirmation of your choice. Your notice should include whether:
- You wish to pay by regular payments or by lump sum.
- You already have an added pension account with another employer.
- You’re choosing to buy extra pension related to a different employment where you’re also part of the 2015 Firefighters’ Pension Scheme.
If you want to pay by regular payments, you would also have to include:
- The period over which you wish to make the payments (including the end date).
- The amount that will be taken out of your pensionable pay in each period and whether this will be as a percentage of your pay (eg 5% monthly) or as a fixed amount (eg £10 a month). Please note, your Fire and Rescue Authority may set a minimum amount you must pay.
Buying added pension is a cost-effective way to boost your retirement income. To help you decide if it’s right for you, it’s wise to get independent financial advice. Here are some places to start:
