Here you will find information on how much it costs to participate in the scheme as well as the impact of absences and working part time.
How much will you pay?
Your rate of contributions is based on how much you are paid, but it will be between 5.5% and 12.5% of your pensionable pay.
Your rate will depend on which pay band you fall into.
The real cost to you will be less, as the amount you pay into your pension is taken before the tax is calculated.
If you work part time or term time the rate is based on the actual rate of pay for your job, so you only pay contributions on the pay you actually earn.
Example
Gemma works full time and their pensionable pay is £20,000 a year, this puts them in band 2 so they will pay 5.8% of £20,000.
This works out at £96 a month, but the real cost will be £77 after accounting for tax relief savings.
If they worked part time (half the hours) they would only pay 5.5% of their £10,000 pensionable pay.
What is my contribution rate?
Your contribution rate depends on how much you are paid, but it will be between 5.5% and 12.5% of your pensionable pay.
The rate you pay depends on which pay band you fall into. The amount you contribute is not based on your employer's contribution amount.
Remember: the annual pension that you build up is based on a set formula and not on your contribution amount. We break down this formula on the How your pension is worked out page.
If you work part time or term time, your rate is based on the actual rate of pay for your job, so you only pay contributions on the pay you actually earn.
You can use the Contributions calculator to see what contributions you pay or could pay. You can also use the calculator to see how your contributions are affected by tax relief and what section of the Scheme you are in.
When you join, and every April afterwards, your employer will determine your contribution rate. If you have more than one job your contribution rate will be determined separately for each job. If your pay changes throughout the year, your employer may decide to review your contribution rate at that time, rather than wait until the following April.
Please note, the pay band ranges will be increased each April in line with the cost of living.
Can I reduce my contributions? 50/50 section
The LGPS offers you the flexibility to pay half your normal contribution rate and build up half your normal pension. This is called the 50/50 section of the LGPS. You keep full life and ill-health cover if you join the 50/50 section.
To move to the 50/50 section, you will need to contact your employer's pensions/payroll department.
There is no limit to the number of times you can elect to move from the main section to the 50/50 section and back again.
More information on reducing your contributions through the 50/50 section can be found on the LGPS website.
Skipping pension contributions can look like an easy way to put more money into your household budget now. Please watch our short video on why it's important to have all the facts to make an informed decisions.
What if I'm away from work?
You may need to take time away from work during your career. Special rules apply to protect your LGPS pension if you are on sick leave, child-related leave or reserve forces leave.
You may be able to pay extra to make up for pension 'lost' during other types of unpaid absence. If you are paying extra in the LGPS, you might have to pay missed extra contributions when you return to work after an absence.
You can find out more information if you are away from work on the LGPS Member website.
Queries about your contribution rate
For queries about your contribution rate contact your payroll team directly. We are unable to amend your contribution rate.