The pension contribution rate you pay depends on which pay band you fall into and is based on your actual pensionable pay. Each post is assessed separately. The pay band ranges are expected to be reviewed every three years.
Below shows the pay bands from 1 April 2017 to 31 March 2018:
|Actual Pay £||Main Section Contribution Rate %||50/50 Section Contribution Rate %|
|Up to £13,700||5.50%||2.75%|
|£13,701 to £21,400||5.80%||2.90%|
|£21,401 to £34,700||6.50%||3.25%|
|£34,701 to £43,900||6.80%||3.40%|
|£43,901 to £61,300||8.50%||4.25%|
|£61,301 to £86,800||9.90%||4.95%|
|£86,801 to £102,200||10.50%||5.25%|
|£102,201 to £153,300||11.40%||5.70%|
|£153,301 or more||12.50%||6.25%|
The real cost to you will be less than above as you will usually receive tax relief on your contributions.
The above bands and rates are for the Main section of the scheme. If you elect to join the 50/50 section, you will pay half of the above percentages and receive half the normal pension benefit.
If you are unsure what contribution band is applicable to you a contribution band calculator can be found on the LGPS 2014 website – ‘How much do you pay in pension contributions in LGPS 2014?’