Each member pays a percent of their actual pay, each month, into their pension account. The below table shows what the current contribution rates are.
LGPS contribution table 2019/2020
|If your pay is:||In the main section you pay a contribution rate of:||In the 50/50 section you pay a contribution rate of:|
|Up to £14,400||5.5%||2.75%|
|£14,401 to £22,500||5.8%||2.90%|
|£22,501 to £36,500||6.5%||3.25%|
|£36,501 to £46,200||6.8%||3.40%|
|£46,201 to £64,600||8.5%||4.25%|
|£64,601 to £91,500||9.9%||4.95%|
|£91,501 to £107,700||10.5%||5.25%|
|£107,701 to £161,500||11.4%||5.70%|
As an employer, you must check member contribution rates every April. You may also wish to check them more often, such as when a member has a change in salary. This is at your discretion and should be outlined in your discretions policy.
What happens if a member's salary changes, meaning they should pay a different contribution rate?
Information about rebanding can be found in the HR and payroll guides issued by the Local Government Association. They're available on the LGPS regulations and guidance website.
Please note: Two members could end up paying different contribution rates even though they’re being paid the same. This would happen where one member had an increase in their salary after the contribution rates had been applied.
Important: You must tell a member about their change in contribution rate. This could be included in their payslip for example. You should also tell them where they can find further information, and their rights of appeal.
The contribution rate for part time and term-time members is worked out using their actual pay. It’s not grossed up to full time or 52 weeks’ pay.