Shropshire County Pension fund

Taking care of your Local Government Pension in Shropshire

Employee Contributions

These pages are for employer use only. Member information can be found on the home page.

If you are a Scheme member, the contributions table below applies to you. For further information please visit the member area.

The table below shows the rate of contributions to be deducted from an employee’s ACTUAL pay on joining the LGPS.

LGPS Contribution Table 2018/19
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 £14,100 5.5% 2.75%
£14,101 to £22,000 5.8% 2.90%
£22,001 to £35,700 6.5% 3.25%
£35,701 to £45,200 6.8% 3.40%
£45,201 to £63,100 8.5% 4.25%
£63,101 to £89,400 9.9% 4.95%
£89,401 to £105,200 10.5% 5.25%
£105,201 to £157,800 11.4% 5.70%
Over £157,800 12.5% 6.25%

What happens if the member’s salary increases or decreases or they change the number of hours they work during the year and this takes them into a different band?

Employees should be rebanded each April according to an estimated Pensionable Pay for the employee, or more often if pay changes through the year. As the employer you should decide how often you wish to reband in any given year. (E.g. after a material change in pay from a change of job, a promotion / demotion, a regrading, a pay award or a change in contractual hours).

Allocating employees to an appropriate band is relatively straight forward where the employee is not expected to undertake any additional hours or overtime. However, it is less straight forward where the number of hours an employee may work in a year is not known. The HR guide and Payroll Guide issued by the LGA provide examples as to how rebanding could work.

It is at an employer’s discretion whether or not to review the bands for every change in circumstance, or to wait until the following April to re-assess members’ rates. Please note that the employer must re-assess all rates each April regardless. Your approach should be outlined in your employer discretion policy.

It is worth considering that if someone is kept on their old band after their Pensionable Pay has changed, this could result with two employees being paid the same amount yet paying different contribution rates to one another.

Important: Every time a member’s band changes, the employer is required to notify the member which contribution band they have been assigned to and this should be specific to the member – a good way to do this may be to include this somewhere within the payslip but each employer should consider assessing the appropriate rate in a reasonable and consistent manner.

The notification must also contain a conspicuous statement giving the address from which further information about the decision may be obtained. They also must notify the employee of the right to appeal, the appeal process and the adjudicator to write to.

Things to note

  • The contribution rate for part time/term-time employees is determined by their actual pay – not grossed up to full time or 52 weeks pay.
  • The bands will be reviewed each year and will increase in-line with CPI. You will need to make a policy on how often you reband a member throughout the year.

Want to know how and where to pay over the contributions to the Fund once deducted from the employee? See the section on Monthly Returns and End of Year Procedure.