How much will I Pay?
The Local Government Pension Scheme (LGPS) is provided to you by your Employer, who then pays the bulk of the cost of your benefits. How much it costs you depends on how much you are paid, but it will be between 5.5% and 12.5% of your pensionable pay under the MAIN Section of the Scheme.
The rate you pay depends on which pay band you fall into, which will be based on your actual pensionable pay. However, the amount you actually pay is far less than you think because you attract tax-relief on the contributions that you pay. (Please note that any contractual or non-contractual overtime that you undertake will be deemed as pensionable).
You also have the option to reduce your normal contribution rate by half, to build up half the level of pension in the scheme during this time; which may be a better option than having to opt out of the scheme altogether. This is known as the 50/50 Section of the scheme.
Contribution Banding Arrangement from 1 April 2020 to 31 March 2021
|Actual Pensionable Pay (£)||MAIN Section - Rate (%)||50/50 Section - Rate (%)|
|Up to 14,600||5.50||2.75|
|14,601 to 22,800||5.80||2.90|
|22,801 to 37,100||6.50||3.25|
|37,101 to 46,900||6.80||3.40|
|46,901 to 65,600||8.50||4.25|
|65,601 to 93,000||9.90||4.95|
|93,001 to 109,500||10.50||5.25|
|109,501 to 164,200||11.40||5.70|
|More than 164,201||12.50||6.25|