How much will it cost me?
Pension Contribution from 1 April 2024
The following table shows the pension contribution bands that will be in force on 1 April 2024. The bands are reviewed from time to time.
The band you fall into will be assessed using your Actual Pay and is at the discretion of your employer. You should contact your employer if you believe you have been placed in the wrong band.
| Band | Pensionable pay range | Main section contribution rate | 50/50 section contribution rate |
|---|
| 1 |
Up to £17,600 |
5.5% |
2.75% |
| 2 |
£17,601 to £27,600 |
5.8% |
2.90% |
| 3 |
£27,601 to £44,900 |
6.5% |
3.25% |
| 4 |
£44,901 to £56,800 |
6.8% |
3.40% |
| 5 |
£56,801 to £79,700 |
8.5% |
4.25% |
| 6 |
£79,701 to £112,900 |
9.9% |
4.95% |
| 7 |
£112,901 to £133,100 |
10.5% |
5.25% |
| 8 |
£133,101 to £199,700 |
11.4% |
5.70% |
| 9 |
£199,701 or more |
12.5% |
6.25% |
How is my contribution rate determined?
Your contribution rate is decided by your employer and depends on your actual pay. This may be based on your contractual pay only, or may be based on the previous years' pay, including any pensionable extras (such as overtime or additional hours).
If you have no contractual hours (a variable time or casual contract), your contribution rate may be determined using a previous years' pay or, if you are a new employee, the hours worked by the previous post holder.
Your contribution rate, and how frequently it should be reviewed is determined by your employer.
The real cost of membership to you is usually even less because pension contributions attract tax relief.
The salary bands are updated each April in line with the cost of living by the Department for Levelling Up, Housing and Communities (DLUHC).
An online calculator is available to illustrate the actual amount that will be deducted from your salary.
Paying less contributions?
The LGPS offers you the flexibility to stay in the scheme at such times and continue to build up valuable pension benefits.
You can elect to pay half your normal contributions and build up half your normal pension. This is known as joining the 50/50 section of the LGPS.
You will be automatically enrolled into the main section when you join the scheme. Here, you will pay the normal contribution rate and build up pension in the normal way.
If you are paying contributions in more than one job, you can elect for the 50/50 option in one, some, or all your individual employments.
Regardless of which section you are in, you receive full life assurance cover.
Please remember, when you join the LGPS 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.
Election to change sections of the LGPS
To do this, please complete the election form.
Further information
You may find this video from the Local Government Pension Scheme website helpful. For sub-titles, select the CC button on the video.
Looking after your pension