Your contributions to the LGPS cover the cost of providing your pension benefits but do not determine the benefits you receive on retirement. For more information on how your retirement pension is calculated, please see the page entitled pension account.
Your employer pays for a large part of the cost of providing your benefits in the scheme after taking into account investment returns. Every 3 years, an independent actuary calculates how much your employer should contribute to the scheme.
The contributions you pay into the scheme will be based on your salary and any overtime and/or additional hours you receive. This forms your pensionable pay which is used to calculate your benefits. If you have more than one job, each job will be banded individually.
If you are a tax payer, you will receive tax relief on your pension contributions, as your contributions are deducted from your gross pay before you pay tax.
There are 9 different contribution banding rates between 5.5% and 12.5%.
To find out your current contribution banding see the table applicable in 2018/19 below.
|Pay Bands||Contribution Rates|
|Up to £14,100||5.5%|
|£14,101 – £22,000||5.8%|
|£22,001 – £35,700||6.5%|
|£35,701 – £45,200||6.8%|
|£45,201 – £63,100||8.5%|
|£63,101 – £89,400||9.9%|
|£89,401 – £105,200||10.5%|
|£105,201 – £157,800||11.4%|
|More than £157,801||12.5%|
The Pension Contributions Calculator on the national LGPS website can also work out your contributions for you.
You can join the 50/50 section of the LGPS after you have been a member of the main scheme. The 50/50 section means you pay half contributions and build up half pension benefits for the period you are in the 50/50 section.
Find out more about the 50/50 Section.
Reviewing your Contributions
Each April, your employer will decide the rate of contributions for each job you hold. If your pay changes during the year, your employer may decide to review your contribution rate. If this review does result in a change to your contribution rate, your employer will inform you of the change.
Pensions Contributions Calculator (This link will redirect you the the national LGPS member website)