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 2018/2019|
|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%|
What happens if a member's salary changes, meaning they should pay a different contribution rate?
As an employer, you must check member contribution rates every April. However, you may also wish to check them more regularly. This is at your discretion and should be outlined in your discretion policy.
Information about rebanding can be found in the HR and payroll guides issued by the Local Government Association and available on the LGPS regulations and guidance website.
Please note: Two members could end up paying different contribution rates even though they are 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 give them details of where they can get further information from, and their right of appeal.
The contribution rate for part time/term-time members is determined by their actual pay – not grossed up to full time or 52 weeks’ pay.