Your contribution rate depends on your actual pensionable pay. The rates are between 5.5% and 12.5% of your pay. You pay contributions on each contract of employment you have.
Your employer determines which pay band you fall in. The pay band determines the contribution rate that you pay. Your employer should ite to tell you what your rate is.
The pay bands and contribution rates are determined by the government and are set in the regulations. This is not your employer’s decision.
Pay bands and contribution rates
The pay band ranges are increased each April in line with the cost of living.
From 1 April 2021 the pay bands and rates that apply are:
|Actual pensionable pay for an employment||Main Section||50/50 Section|
|Up to £14,600||5.5%||2.75%|
|£14,601 - £22,900||5.8%||2.90%|
|£22,901 - £37,200||6.5%||3.25%|
|£37,201 - £47,100||6.8%||3.40%|
|£47,101 - £65,900||8.5%||4.25%|
|£65,901 - £93,400||9.9%||4.95%|
|£93,401 - £110,000||10.5%||5.25%|
|£110,001 - £165,000||11.4%||5.70%|
|More than £165,000||12.5%||6.25%|
The LGPS has a contributions calculator. Enter your pensionable pay to find out your:
- contribution band, and
- full rate of contributions payable in the Main Section, or
- full rate of contributions payable in the 50/50 Section.
Someone who works full time and is paid £16,000 each year pays a contribution rate of:
- 5.8% in the Main Section, or
- 2.9% in the 50/50 Section.
The 50/50 section of the scheme is intended as a short term measure in times of financial hardship. You pay in half your pension contributions and build up half your pension. You can opt to move into the 50/50 section. Find out about the 50/50 Section
What your employer pays
Your employer pays contributions on your behalf. Find out what your employer pays
You receive tax relief on your pension contributions. This means your income tax is calculated after pension contributions are deducted from your pay.
You should check your payslip to make sure that pension contributions are being deducted.
Your contributions are secure. Payment of benefits to scheme members are guaranteed by law.
You pay contributions on your normal salary or wages plus other pensionable extras. What you pay contributions on
You are unable to backdate contributions but there are other options for increasing benefits. Find out about increasing benefits
Your pension is calculated using your pensionable pay. How your pension benefits are calculated