How much will it cost me?
The contribution rate you pay in the LGPS is based on how much you are paid. The rate you pay depends on which pay band you fall into.
There are nine different pay bands with contribution rates ranging from 5.5% to 12.5% of your pensionable pay.
If you elect to pay less contributions by joining the 50/50 section of the scheme, you will pay half the normal contribution rate.
Contribution bands 2019/2020
|Band||Pensionable pay range||Main section contribution rate||50/50 section contribution rate|
||Up to £14,400
||£14,401 to £22,500
||£22,501 to £36,500
||£36,501 to £46,200
||£46,201 to £64,600
||£64,601 to £91,500
||£91,501 to £107,700
||£107,701 to £161,500
||£161,501 or more
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 Ministry for Housing, Communities and Local Government (MHCLG).
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.
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