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Additional Pension Savings

You can increase the amount of benefits you receive at retirement by paying extra contributions. There are four ways of doing this and each way buys you different benefits:

Buying additional pension: under this option you elect to buy a set amount of annual pension for an agreed amount of contribution that you can choose to pay either as a lump sum or as a regular payment.  You can also opt to provide additional benefits for your dependants.

Taking out an AVC account: your contributions are invested and build up a cash fund.  When you retire you use this fund to provide additional benefits for you and your dependants.  You can take some of this fund as a lump sum.

Buying increased life assurance: special terms are available through Standard Life.

Unreduced lump sum (only available to members pre April 2008): for some male members who have pensionable service from before 25th March 1972 you can buy an unreduced lump sum so that your retirement lump sum is three times your pension.

The most you can pay into AVC's is 100% of your taxable pay less your standard contributions, subject to an overall maximum limit per annum set by HMRC.

Further details about additional pension savings are available in the factsheet entitled 'Additional Pension Saving' available via our factsheets page. 

There is also an illustrative calculator available to assist members.

Link to Scottish Government Website