31. Can I pay more to boost my pension?

You have a number of options to increase your pension.

  • You can buy added pension in the scheme.
  • You can pay Additional Voluntary Contributions (AVCs).
  • You can contribute to personal pension outside of the Civil Service arrangements.

Tax relief is available on your contributions up to a maximum of your UK taxable earnings, or £3,600 if you earn less than that. However you will have to pay additional tax if all your pensions increase in value by more than the Annual Allowance, or if their total value is more than the Lifetime Allowance. You can find out more about these tax allowances on: www.hmrc.gov.uk and in our booklet “Your pension and tax”.

You should also note that you may not be able to use a lump sum from another pension arrangement to make additional pension contributions of any kind. This is due to tax rules on “recycling”; you can find more information on the HMRC website.

As of 1 April 2022, the nuvos scheme is closed, no new applications to boost your pension in the nuvos scheme can be made.

32. What is added pension?

Added pension is an additional pension that you can choose to buy. It increases in line with rises in the cost of living every year both before and after it comes into payment. When you retire you can choose to give up some of your added pension to take a lump sum.

There is a limit to the amount of added pension you can buy in a scheme year. This limit is reviewed each year and can go up in line with rises in the cost of living.

Added pension limits

As of 1 April 2022, the nuvos scheme is closed, no new applications to boost your pension in the nuvos scheme can be made.

33. What does added pension buy?

As a nuvos member you are able to select whether you want to purchase added pension for yourself only or for yourself and your dependants.

As of 1 April 2022, the nuvos scheme is closed, no new applications to boost your pension in the nuvos scheme can be made.

34. How much does it cost?

The cost of added pension will depend on your age. You can get an estimate by using the added pension calculator.

As of 1 April 2022, the nuvos scheme is closed, no new applications to boost your pension in the nuvos scheme can be made.

35. What do I get for my money?

You will get an amount of pension added to your nuvos pension that will increase each year in line with rises in the cost of living. When you draw your pension your added pension will be combined with your nuvos pension.

Our added pension calculator which will give you an idea of the cost of buying added pension. Visit: Pension Calculators

As of 1 April 2022, the nuvos scheme is closed, no new applications to boost your pension in the nuvos scheme can be made.

36. How do I pay for added pension?

You can choose to pay by monthly deduction from your salary, or by lump sum. If you choose to pay by monthly deduction, you can either choose a set amount (e.g. £20 each month) or a set percentage of your salary (e.g. 5% each month).

You should note that if you decide to pay a set amount, it will buy a smaller amount of added pension in future years because the rates are age-based. If you want to go on buying the same amount of pension each year, you will need to increase your contribution amount each year.

You can choose to make an open-ended commitment to go on contributing every month, until you leave or choose to cancel it.

Monthly added pension contracts start on 01 April. However, if you apply to buy added pension within the first three months of joining the scheme, we can backdate your contributions to your start date. Your contributions must be paid for the full scheme year and cannot be ceased before 31 March

Alternatively, you may pay by lump sum at any time before the deadline, but not in the first 12 months after joining. You can make one lump sum payment each year. This lump sum payment can be in addition to any monthly deductions you are paying.

As of 1 April 2022, the nuvos scheme is closed, no new applications to boost your pension in the nuvos scheme can be made.

37. What are Additional Voluntary Contributions?

The Civil Service Additional Voluntary Contributions Scheme (CSAVCS) is a defined contribution scheme where you pay contributions to the pension provider for investment in a fund or selection of funds. You can then use the accumulated investment fund to provide you with an income and/or lump sums in retirement.

You can pay Additional Voluntary Contributions (AVCs) to the CSAVCS. The provider is Legal & General.

AVCs help you to build up an additional pension pot which you can use to take an income and/or lump sums from age 55 (or 50 if you had a CSAVCS before 6 April 2006).

You can take up to 25% of your fund as a tax-free lump sum subject to the Lifetime Allowance. You do not have to take your CSAVCS benefits when you retire from the Civil Service pension scheme 

Find out more about Civil Service Additional Voluntary Contributions Scheme.

Published:
6 January 2022
Last updated:
29 June 2022