A guide to pension contribution rates
The rate of contribution that a member pays to the LGPS is decided by a group of bandings which change annually. The latest contribution bandings are available on the LGPS website.
If an employee wishes to join the 50/50 pension scheme the contribution is half of the main scheme rate.
- Decide the contribution rate, for each job the member holds by estimating the actual annual pay earned at the date of joining or on 1 April each year and which section of the pension scheme they are joining (main scheme or 50/50 scheme).
- Decide on how and when an employee’s pay banding is assessed i.e. Annually, on pay change, overtime average etc. The rate may be adjusted during the year or in April of the following year.
- Inform the member in writing which band they have been allocated each year and inform them of the appeals procedure.
Employer contributions are expressed as a percentage of the member's actual pensionable pay. The rate will change every three years following the actuarial valuation of the pension fund.
We will inform you of the correct contribution rate following an actuarial valuation, together with a copy of the actuary's report.
Payment of employee and employer pension scheme contributions is due, and must be paid, on a monthly basis.
Form PEN CTR1 should be used to notify Pension Services of the remittance details for each monthly payment together with any adjustments to the payment because of refunded contributions for members who opt-out.
Pension legislation requires that payment should arrive in the Staffordshire Pension Fund by no later than the 19th day of the month after which employees' contributions were deducted. Late payment would attract interest and may be reported to the Pensions Regulator.
You must complete form PEN CTR1 by providing:
- decide the contribution rate, for each job the member holds by estimating the actual annual pay earned at the date of joining or on 1 April each year and which section of the pension scheme they are joining (main scheme or 50/50 scheme)
- decide on how and when an employee’s pay banding is assessed i.e. Annually, on pay change, overtime average etc. The rate may be adjusted during the year or in April of the following year
- inform the member in writing which band they have been allocated each year and inform them of the appeals procedure
Employee and employer scheme contributions can be paid monthly or weekly by BACS or CHAPS.
Remittances should be made payable to ‘Staffordshire Pension Fund’ using the following bank details:
- Sort code: 30-64-10
- Account number: 31593860
The remittance should be accompanied by enough information to enable the payment source to be identified (i.e. your academy name or employer code). You can find further guidance how to correctly complete the CTR1 form on our Monthly Contribution Payment Process page.
Alternatively, payment by cheque should be sent together with the completed form PEN CTR1 to:
Pension Services Section
Staffordshire County Council
2 Staffordshire Place
Tipping Street
Stafford
ST16 2DH
An annual contribution return must be submitted to Pension Services at the end of each financial year. This should include:
- PEN CTR2 is used to confirm that you have performed an annual reconciliation of the monthly contribution remittances made throughout the year, and that the annual totals represent a full and accurate account of both the employees' and employer's contributions deducted.
- Scheme member's contributions paid during the twelve months up to the 31 March each year and other further information required for maintenance of the employee's pension record should be returned on an MS Excel spreadsheet.
- Contpostmaster.xls is available on the year end page. As from 1 April 2014 additional information has been required in relation to the employee’s pay a second spread sheet called 'CARE data return' should also be completed.
If you need any further information about the areas covered by these notes, please get in touch.