What do I pay?
Contributions - how much does it cost?
Employee contribution rates are tiered according to the following table based on whole-time equivalent pensionable pay (including pensionable allowances).
| Band | Whole time pay | Contribution rate |
|---|---|---|
| 1 | up to £13,500 | 5.5 per cent |
| 2 | £13,501 to £15,800 | 5.8 per cent |
| 3 | £15,801 to £20,400 | 5.9 per cent |
| 4 | £20,401 to £34,000 | 6.5 per cent |
| 5 | £34,001 to £45,500 | 6.8 per cent |
| 6 | £45,501 to £85,300 | 7.2 per cent |
| 7 | £85,300 + | 7.5 per cent |
The band ranges increase each April.
Employees pay contributions on their actual pensionable earnings including pensionable allowances.
The contribution band for part-time employees is to be determined by their whole-time equivalent pay.
Where an employee holds more than one employment each is to be treated separately when determining the band relevant for that employment.
The contribution band for term-time employees is determined by their whole-time equivalent pay not grossed up to 52 weeks.
Someone who works full-time at a pay rate of £16,000 would pay a contribution rate of 5.9 per cent.
If you work part-time hours your contribution rate is based on the whole-time pay rate for your job, although you will only pay contributions on the pay you actually earn. For example, someone who works half-time with an actual pay of £10,000 a year will pay a contribution rate of 5.9 per cent as their whole-time pay rate is £20,000.
If you work term time weeks (e.g. in a school) your contribution rate is based on the whole-time pay rate for term time working, although you will only pay contributions on the pay you actually earn. For example, someone who works full-time hours for 44 weeks a year, with an actual pay of £15,000 will pay 5.8 per cent. If they were to work half-time for 44 weeks with an actual pay of £7,500, then they would still pay 5.8 per cent as their whole-time rate for term time working would still be £15,000.
The contribution band for fee earners is determined by their actual fee amount.
Any queries in connection with the assessment of bandings should be made to your employers HR/personnel section.
Transitional provisions for protected manual workers ceased from the 31 March 2011.
Employers also pay contributions towards the total cost of the scheme.
Your pension contributions qualify for tax relief and you will pay less National Insurance. Members of the LGPS don't pay into the State Second Pension - as they are "contracted out". The State Second Pension is in addition to the flat rate Old Age Pension and replaced the State Earnings Related Pension Scheme (SERPS) from April 2002.