Added Pension - Frequently Asked Questions (FAQs)

Am I eligible to buy Added Pension?

You can buy Added Pension if you are an active member of classic, classic plus, premium, nuvos or alpha. You cannot buy Added Pension if you are in the partnership scheme, on an unpaid break, or you have left the scheme.

Is there a limit to the amount of Added Pension I can buy?

There is an overall limit to the amount of Added Pension you can buy. The limit is reviewed each year and is adjusted in line with rises in the cost of living. Please see the limits and deadlines page for more information.

How much does Added Pension cost to buy?

The Added Pension Calculator will help you work out how much Added Pension you want to buy and how much it will cost you. Please make sure that you use the calculator for your pension scheme. This ensures an accurate estimate.

If I used to be a member of either classic, classic plus, premium, or nuvos can I make Added Pension contributions to my previous scheme?

No. The scheme rules only allow members to start an Added Pension contract in the scheme they are in.

Before moving to the alpha scheme, I used to make Added Pension contributions in my previous scheme. What will happen to these contributions if I open a new Added Pension plan whilst in alpha?

If you were buying Added Pension before you moved into the alpha scheme, you can continue to buy Added Pension at the same rate until the end date of your contract or until you choose to cancel it. The Added Pension you have built up will go towards your benefits in your previous scheme.

Will I get tax relief on my Added Pension contributions?

You will receive tax relief on contributions that do not exceed the limits set by HM Revenue and Customs. If the deduction comes directly from your salary then your tax relief is automatic. If you make a lump sum contribution by personal cheque or bank transfer, you will have to claim the tax relief from HMRC directly.

Will my annual allowance be affected by buying Added Pension?

Buying Added Pension, particularly by lump sum, will increase the value of your pension from one year to the next, and you could potentially become liable to an Annual Allowance tax charge. You can find more information on the Tax on your private pension contributions page on the GOV.UK website.

Can I buy Added Pension for my dependants?

In the classic, classic plus or premium schemes, Added Pension will provide benefits for your dependants automatically. In nuvos or alpha, you are able to select if you want to purchase Added Pension for yourself only or for yourself and your dependants.

How will I know how much Added Pension I have bought?

Your Annual Benefit Statement (ABS) will show you how much Added Pension you’ve bought each year and the current value of added pension bought in previous years.