As a Scheme member, you must pay contributions to the LGPS. How much you pay depends on how much you earn. If you earn enough, you will benefit from tax relief. Your employer also pays contributions to meet the cost of providing your LGPS benefits.
Your contribution rate is based on how much you are paid. It’s currently between 5.5% and 12.5% of your pensionable pay. If you join the 50/50 section of the Scheme, you would pay half the rates shown in the table below.
When you join, and every April afterwards, your employer will decide your contribution rate. If you have more than one job, your employer will set your contribution rate separately for each job. If your pay changes in the year, your employer may decide to review your contribution rate.
The table below shows the pay bands and contribution rates that apply from April 2023.
If your actual pensionable pay is:
You pay a contribution rate of:
Up to £16,500
£16,501 to £25,900
£25,901 to £42,100
£42,101 to £53,300
£53,301 to £74,700
£74,701 to £105,900
£105,901 to £124,800
£124,801 to £187,200
£187,201 or more
Contribution bands for 2023/24
The contribution rates and pay bands are reviewed regularly and may change in the future. If you are a member of the Scheme, you should check your payslip to make sure that pension contributions are being taken.
You can use the Contributions calculator to see what contributions you pay based on your pay. You can use the calculator to see how your contributions are affected by your pay, tax relief and what section of the Scheme you are in.
If you earn enough to pay tax, your LGPS contributions will attract tax relief when they are deducted from your pay.
There are restrictions on the amount of tax relief available on pension contributions. If the value of your pension savings increases in a year by more than the standard annual allowance, you may have to pay a tax charge. Most people will not be affected by the annual allowance. You can find out more about Tax and your pension.
Your employer pays the balance of the cost of providing your LGPS benefits. Every three years an independent actuary calculates how much your employer should contribute to the Scheme, after taking into account investment returns. The amount will vary, but on average employers will pay two thirds of the Scheme’s costs, with employees paying one third.