Local Government Pension Scheme
Employee Contribution Rates
The standard cost of pension contributions are assessed based on your contractual pay. The rate will be between 5.5% and 7.5%. The net cost to you can be much less as you will get tax relief on your contribution amount, and in the majority of cases you will pay less National Insurance too.
Your employer shares the cost and will also pay a percentage based on your contractual pay, in most cases this is at a much higher rate.
Your contribution band will be determined on your full time equivalent pay on 1 April each year. The current bands are shown below:
You will contribute according to your whole-time pay rate:
|
If your whole-time pay rate is: |
You pay a contribution rate of: |
|
Up to £12,600 |
5.5% |
|
More than £12,600 and up to £14,700 |
5.8% |
|
More than £14,700 and up to £18,900 |
5.9% |
|
More than £18,900 and up to £31,500 |
6.5% |
|
More than £31,500 and up to £42,000 |
6.8% |
|
More than £42,000 and up to £78,700 |
7.2% |
|
More than £78,700 |
7.5% |
The above banding rates are applicable from 1 April 2009. These bands are increased each April in line with the cost of living.
Calculate how much you may pay
Part time employees
If you work part-time then your contribution band will be assessed using the 'whole-time' equivalent pay of a full time employee in the same post.
Example:
Pay grade £15,895 pa (full time)
You work 18.5 hours per week
You therefore earn £15,895/37 x 18.5 = £7,947.50
The contribution rate is assessed on £15,895 = 5.9%
You pay 5.9% of £7,947.50 per year
Term time only employees
If you work 'term-time' only then your contribution band is assessed based on your actual pay.
Example:
Pay grade £15,895 pa (full time)
You work 37 hours per week 44 weeks per year therefore earn 44/52 x £15,895 = £13,449.62 per year
The contribution rate is assessed on £13,449.62 = 5.8%
You pay 5.8% of £13,449.62 per year
Part time term time employees
If you are a 'part-time', 'term-time' employee then the contribution band will be worked out using the actual pay as if you were a 'full-time', 'term-time' employee.
Example:
Pay grade £15,895 (full time)
You work 18.5/37 hours per week 44 weeks per year therefore earn 18.5/37 x 44/52 x £15,895 = £6,724.82 per year
The contribution rate is assessed on £15,895/52 x 44 = £13,449.62 = 5.8%
You pay 5.8% of £ 6,724.81 per year
Former manual staff
You used to pay a protected rate of 5% but this will be phased to the new contribution rates over 3 years until April 2011 as shown below.
Year 1 2008/09 5.25%
Year 2 2009/10 5.5%
Year 3 2010/11 6.5%*
*or lower, in accordance with the corresponding pay band in the table above.
Your employer pays the balance of the cost of providing your benefits after taking into account your contributions and investment returns. Every 3 years an independent actuary calculates how much your employer must contribute to the Scheme and this amount will vary.