What is the 50/50 Section?
This option is available to contributing members from 1 April 2014. The 50/50 section allows you to reduce your contributions by half, and in return build up half pension benefits.
Please note that you cannot elect to move to the 50/50 section until after you have started your employment and joined the main scheme.
If you have more than one employment you can elect for the 50/50 section in one, some, or all of your employments. An election to join this section must be made and sent to your employer.
The current contribution rates applicable for 2018/19 are shown below.
|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%|
How long can you remain in the 50/50 section?
The 50/50 section is designed to be a short-term option for when times are tough financially. Because of this your employer is required to re-enroll you back into the main scheme every 3 years. This will be carried out in line with your employers’s automatic enrolment date. Your employer will tell you when this will happen if you’re in the 50/50 section of the scheme. If you wish to continue in the 50/50 section, at that point you will need to make another election to remain in that section.
You can choose to revert back to the main section of the scheme at any time by informing your employer and you will then start to build up full benefits in the main section from your next available pay period.
The Pension Contributions Calculator on the national LGPS website can also work out your contributions to the 50/50 section for you.
Is my lump sum life assurance cover affected?
The value of any lump sum life assurance cover payable (3 times annual pensionable pay) remains the same regardless of which section of the scheme you pay into.
How do I join the 50/50 section?
Complete the 50-50 section election form and return to your employer.
How do I rejoin the main scheme?
Complete the Main section election form and return to your employer.
Pensions Contributions Calculator (This link will redirect you the the national LGPS member website)