How much do I pay?

Money - coins and cash

The rate of contributions you pay is based on how much you are paid.

There are nine different pay bands with contribution rates ranging from 5.5% to 12.5% of your pensionable pay.

If you elect for the 50/50 section of the scheme you would pay half the Main section rate. The rate you pay depends on which pay band you fall into. When you join, and every April afterwards, your employer will decide your contribution rate. Also, if your pay changes throughout the year, your employer may decide to review your contribution rate.

Here are the pay bands and contribution rates that apply from April 2018.

Contribution Table 2018/19
If your actual pensionable pay is: You pay a contribution rate of:
  Main section 50/50 section
Up to £14,100 5.5% 2.75%
£14,101 to £22,000 5.8% 2.9%
£22,001 to £35,700 6.5% 3.25%
£35,701 to £45,200 6.8% 3.4%
£45,201 to £63,100 8.5% 4.25%
£63,101 to £89,400 9.9% 4.95%
£89,401 to £105,200 10.5% 5.25%
£105,201 to £157,800 11.4% 5.7%
£157,801 or more 12.5% 6.25%

Here are the pay bands and contribution rates that applied from April 2017.

Contribution Table 2017/18
If your actual pensionable pay is: You pay a contribution rate of:
  Main section 50/50 section
Up to £13,700 5.5% 2.75%
£13,701 to £21,400 5.8% 2.9%
£21,401 to £34,700 6.5% 3.25%
£34,701 to £43,900 6.8% 3.4%
£43,901 to £61,300 8.5% 4.25%
£61,301 to £86,800 9.9% 4.95%
£86,801 to £102,200 10.5% 5.25%
£102,201 to £153,300 11.4% 5.7%
£153,301 or more 12.5% 6.25%

The contribution rates and / or pay bands will be reviewed periodically and may change in the future. This is to maintain the average contribution from employees at 6.5% and to ensure the long term costs of the scheme are managed.

You pay contributions on your normal salary or wages plus any shift allowance, bonuses, overtime (both contractual and non-contractual), Maternity Pay, Paternity Pay, Adoption Pay, Shared Parental Pay and any other taxable benefit specified in your contract as being pensionable.

You do not pay contributions on any travelling or subsistence allowances, pay in lieu of notice, pay in lieu of loss of holidays, any payment as an inducement not to leave before the payment is made, any award of compensation (other than payment representing arrears of pay) made for the purpose of achieving equal pay, pay relating to loss of future pensionable payments or benefits, any pay paid by your employer if you go on reserve forces service leave nor (apart from some historical cases) the monetary value of a car or pay received in lieu of a car.

When you join the scheme your employer will decide your appropriate rate of contributions for each job you have. Your employer may decide to review your contribution rate, if for example your pay changes during the year. If this results in a change to your contribution rate they must let you know.

If you elect for the 50/50 section of the scheme you will start paying half your normal rate of contributions from your next available pay period.

You should check your payslip to make sure that pension contributions are being deducted. You receive tax relief on your pension contributions. To achieve this, your contributions are deducted from your pay before you pay tax.

Your contributions are very secure. As the LGPS is set up by Statute, payment of benefits to scheme members is guaranteed by law.

What does my employer pay?

Your employer currently pays the balance of the cost of providing your benefits after taking into account investment returns. Every three years, an independent actuary calculates how much your employer should contribute to the scheme. The amount will vary, but generally employees contribute approximately one third of the scheme's costs and the employer contributes the remainder.

Contributions calculator

You can use the Contributions Calculator to find out how much you pay in contributions.

Category: 

Please rate your experience on our website