Membership is one of the main ingredients we use to work out your benefits from the Scheme. So if you buy extra membership, this can help in all kinds of ways...

Bigger benefits

Upon retirement, you will get a bigger inflation proof pension, and a bigger lump sum as a result of buying extra benefits. If you entered into the contract on or before 5 April 2006 and were over age 45 when you started paying, you will only be providing for a bigger pension, not a bigger lump sum.

Better protection

If you retire because of ill health, the extra membership you had agreed to buy will all count towards your pension, even though you haven't finished paying for it.

This extra membership will also count towards how many extra years you will get, so there is often even better protection.

And in the same way, if you die, the extra membership will count towards bigger pensions for any dependent children you have, and a pension for your husband or wife as long as you marry before you retire.

It's up to you

You have the scope to buy up to an additional 6⅔rd years scheme membership.

How to pay

It couldn't be easier, as the money is taken straight from your pay. What's more, if you're a tax payer, you will automatically get tax relief through your pay. But remember, because you pay for the extra membership as a percentage of your pay, the amount you pay will go up as your pay goes up.

Working out the cost

The actual cost to you depends on how old you are when you enter into the contract to buy extra membership.

But to give you the general idea, the table below shows the rough cost of buying one extra year at different ages. As you will see, the younger you start, the lower the cost, as you are spreading the payments over a longer period of time.

Age	Percentage Cost	Cost In Pence
30	0.54%-0.66%	From ½p for every pound of pay
40	0.80%-1.09%	Roughly 1p for every pound of pay
50	1.42%-2.37%	Roughly 1½p to 2½p for every pound of pay
And remember, if you pay tax the cost is even less.
"...the younger you start, the lower the cost, but the longer you pay for."

Part time

Please note: the table shows the cost based on full time pay. If you are part time, it will cost a higher percentage of your pay, because your pay is lower. For example if one year costs 1% of full time pay but you work half the hours, it will cost you 2% of your lower part time pay.

Payment period

Payments begin on your next birthday, and end on your 65th birthday. If you stop your payments part way through, you won't have paid for all the extra membership you agreed to buy. So here's what happens...

If you change your mind:

You are free to cancel the payments at any time, and simply count the extra membership you have paid for so far.

If you leave the Scheme:

If you are able to have a refund of your main Scheme contributions, it will include the extra contributions you have paid so far. If you are not able to have a refund, we will add the extra membership you have paid for so far to the rest of your membership. You then leave this in the Scheme to draw later, or transfer it to some other pension scheme.

If you fall ill or die:

If you retire early because of ill health or you die, we will count all the extra membership you agreed to buy, even though you haven't finished paying for it.

Example

Emyr's background

Emyr is 40 on his next birthday, he joined the Scheme when he was 30, and he earns £14,000 a year.

Cost to Emyr

Each year he chooses to buy will cost him 1.05% of his pay.

How much can he buy?

Emyr can buy up to the maximum of 6⅔rd extra years.

Suppose Emyr buys five years

Based on his pay now, it will cost him just over £61 extra a month (or just over £47 after tax relief).

But remember, the cost will go up as his pay goes up, and he will have to pay this extra from age 40 right up to age 65 to buy the full five years.

Take the next step

If you would like to know more about how much you can buy, and how much it will cost you can apply for a personal illustration by filling in our Online Form. We will then send you some details, along with a form in case you want to go ahead. Your doctor will also have to fill in part of the form, to certify that you're in good health having regard to age. If we can help in any other way, please feel free to get in touch with us:

Clwyd Pension Fund
County Hall
Mold
Flintshire
CH7 6NA

Tel: 01352 702878 or 01352 702875

Fax: 01352 702836

E-mail: pensions@flintshire.gov.uk