How you can buy-back lost pension

You have the option to 'buy-back' lost pension if you've had a period of authorised unpaid leave.

If you are absent from work for any of the following reasons, this period will not count towards your pension.

  • industrial action
  • authorised unpaid leave
  • unpaid additional child-related leave.

Learn more about how absence from work can affect your pension.

How we calculate the amount of lost pension for a period of absence

  • For a main section pension, it is 1/49th of your assumed pensionable pay.
  • For a 50/50 section pension, it is 1/98th of your assumed pensionable pay.

Additional pension contributions

You can ask to pay additional pension contributions (APCs) to restore your pension. You need to do this within the first 30 days of your return to work although your employer may agree to a longer period. You should ask your employer what their policy is.

The cost of the APC is split between you and your employer. You will pay one-third of the cost and your employer will pay the rest. This is known as a Shared Cost Additional Pension Contract (SCAPC).

If the absence were due to industrial action, or your leave was unauthorised, the cost of purchasing the lost pension would be met entirely by you (unless your employer voluntarily chooses to contribute to the APC).

How you can make the payments

You can pay the additional contributions in a one-off lump sum or through regular payments from your wages. You will need a statement from your GP to confirm you are in good health if you wish to make regular payments for longer than 12 months. The maximum period of absence you can elect to buy back by a SCAPC is three years.

Your employer should tell you about the way you can pay additional pension contributions to restore lost pension.

Use the 'buy lost pension' calculator on the LGPS website to get an idea of the costs and get a formal quote. Read all the terms and conditions on the website with the calculator.

The formal quote issued by the site is based on the information you supply. If you want to continue, print out three copies, sign and date them and send one to Pension Services, one to your employer and keep one for your records.

Minimum monthly payment amount

The minimum amount you can pay each month is £5. Unless your employer has agreed to amalgamate short periods of your unpaid leave, you'll need to set up a new quote for each period. Or make a single lump-sum payment.

If you miss the 30-day the deadline

Ask your employer whether they have any terms to extend the deadline. Or what the policy is on ‘shared costs’. This is for your employer to decide.

You will also find more information about APCs on our decreasing or increasing your payments page.