Additional pension

Information and advice on buying additional pension from the NITPS including how much it will cost, how to buy it and the effect of unpaid leave.

Can I buy additional service to improve my pension?

No, but you can buy additional pension.

What is additional pension?

This is a pension you can receive in addition to your standard benefits from the NITPS.

How much additional pension can I buy?

The maximum annual pension you can buy is £5,500. You can buy this at different times in multiples of £250 of annual pension.

How do I pay for my additional pension?

You can choose to make a one off payment, or you can have deductions taken from your salary.

How much will my additional pension cost?

The cost is calculated using a number of factors such as your age and the amount of additional pension you want to buy.

An example to illustrate possible costs would a 50 year old female who would have to pay £4040 to buy £250 of additional pension benefits for personal and dependants.

If I decide to pay by deductions from my salary, will the payments change?

Payments will be reviewed after each scheme valuation so they may increase or decrease depending upon the results of the valuation.

Can I continue payments if I am on unpaid leave or leave the scheme?

No, you may only make payments while contributing to the scheme.

We will calculate how much additional pension you are entitled to receive based upon the contributions you have paid up to the day you leave the scheme.

You can, however make a one off lump sum payment to clear the outstanding contributions.

Will the contributions alter if I start to work part-time?

No, you will be required to pay the same amount of contributions as you did when you worked full-time.

If I decide to draw part of my pension before my Normal Pension Age (NPA), can I receive my additional pension too?

Yes, provided you have paid for it in full, but the pension will be subject to an actuarial reduction.

What happens if I retire before the end of a payment period?

You will be able to complete the payments by making a one-off payment or you can receive a pension based upon the contributions you have made up to the time you retire.

If I become too ill to work and receive an ill health pension, do I have to wait until NPA before I receive my additional pension?

No, you will receive the full amount of additional pension.

What happens if I die before I retire?

If you have arranged to buy additional pension for dependants, then a pension will be paid to them.

If you have only arranged to purchase additional pension for personal benefits, no additional benefits will be paid to the dependants.

If my marriage or civil partnership is legally ended, will my additional pension be taken into account as part of any financial settlement?

Yes, we will be required to provide information to the court in the same way as we are required to provide information about your scheme benefits.

Will my additional pension be paid to my family or dependants if I die?

No, but you can also buy additional pension for your family or dependants within the maximum £5,500 limit.

Will my additional pension receive increases each year like my scheme pension?

Yes, your additional pension will be subject to pensions’ increase.

Can I also buy an additional lump sum?

No, this is not possible, but you will be able to give up some of your additional annual pension to provide a lump sum at a rate of £1 of annual pension for £12 of lump sum within Her Majesty’s Revenue and Customs levels (HMRC).

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