Contributions


How much do I have to pay?

The rate of contributions you pay will be based on your actual pensionable pay. (Non-contractual overtime is counted as pensionable pay.) If you elect for the 50/50 section of the scheme you would pay half the normal contribution rate.

2021/2022 - contribution bandings applicable from 1 April 2021 to 31 March 2022

Band If your pay is: Contribution rate - main section Contribution rate - 50/50 section
1 Up to £14,600 5.5% 2.75%
2 £14,601 to £22,900 5.8% 2.9%
3 £22,901 to £37,200 6.5% 3.25%
4 £37,201 to £47,100 6.8% 3.4%
5 £47,101 to £65,900 8.5% 4.25%
6 £65,901 to £93,400 9.9% 4.95%
7 £93,401 to £110,000 10.5% 5.25%
8 £110,001 to £165,000 11.4% 5.7%
9 £165,001 and more 12.5% 6.25%
Assessing your contribution rate

Your employer will decide the appropriate contribution rate for each employment by matching your actual pensionable pay to the appropriate band and section in the contribution table.

Your employer decides when your contribution rate is reviewed. If this results in a change to your contribution rate, they will let you know.

Contribution rate examples
Example 1

Sarah works part time as a teaching assistant.

  • Her annual pensionable pay is £12,000.
  • Her gross contribution rate will be 5.5% (£55 a month).
  • Her actual contribution rate after tax relief will be 4.4% (£44 a month).

Example 2

Ben works full time as a team manager.

  • His annual pensionable pay is £25,000.
  • His gross contribution rate will be 6.5% (£135.42).
  • His actual contribution rate after tax relief will be 5.2% (£108.34 a month).

Example 3

Sarah works full time as a Department Head.

  • Her annual pensionable pay is £80,000.
  • Her gross contribution rate will be 9.9% (£660 a month).
  • Her actual contribution rate after tax will be 5.94% (£396 a month).

Previous years' employee contribution rates

Before 1 April 2014, contribution pay bands were based on whole time equivalent pay, unless you were a term time worker.

2020 to 2021

Band If your pay is: Contribution rate – main section Contribution rate – 50/50 section
1 Up to £14,600 5.5% 2.75%
2 £14,601 to £22,900 5.8% 2.9%
3 £22,901 to £37,200 6.5% 3.25%
4 £37,201 to £47,100 6.8% 3.4%
5 £47,101 to £65,900 8.5% 4.25%
6 £65,901 to £93,400 9.9% 4.95%
7 £93,401 to £110,000 10.5% 5.25%
8 £110,001 to £165,000 11.4% 5.7%
9 £165,001 and more 12.5% 6.25%

2019 to 2020

Band If your pay is: Contribution rate – main section Contribution rate – 50/50 section
1 Up to £14,400 5.5% 2.75%
2 £14,401 to £22,500 5.8% 2.9%
3 £22,501 to £36,500 6.5% 3.25%
4 £36,501 to £46,200 6.8% 3.4%
5 £46,201 to £64,600 8.5% 4.25%
6 £64,601 to £91,500 9.9% 4.95%
7 £91,501 to £107,700 10.5% 5.25%
8 £107,701 to £161,500 11.4% 5.7%
9 £161,501 and more 12.5% 6.25%

2018 to 2019

Band If your pay is: Contribution rate – main section Contribution rate – 50/50 section
1 Up to £14,100 5.5% 2.75%
2 £14,101 to £22,000 5.8% 2.9%
3 £22,001 to £35,700 6.5% 3.25%
4 £35,701 to £45,200 6.8% 3.4%
5 £45,201 to £63,100 8.5% 4.25%
6 £63,101 to £89,400 9.9% 4.95%
7 £89,401 to £105,200 10.5% 5.25%
8 £105,201 to £157,800 11.4% 5.7%
9 £157,801 and more 12.5% 6.25%

2017 to 2018

Band Whole time equivalent pay band Contribution rate
1 Up to £13,700 5.5%
2 £13,701 to £21,400 5.8%
3 £21,401 to £34,700 6.5%
4 £34,701 to £43,900 6.8%
5 £43,901 to £61,300 8.5%
6 £61,301 to £86,800 9.9%
7 £86,801 to £102,200 10.5%
8 £102,201 to £153,300 11.4%
9 More than £153,301 12.5%

2016 to 2017

Band Whole time equivalent pay band Contribution rate
1 Up to £13,600 5.5%
2 £13,601 to £21,200 5.8%
3 £21,201 to £34,400 6.5%
4 £34,401 to £43,500 6.8%
5 £43,501 to £61,700 8.5%
6 £60,701 to £86,000 9.9%
7 £86,001 to £101,200 10.5%
8 £101,201 to £151,800 11.4%
9 More than £151,801 12.5%

2014 to 2015

Band Whole time equivalent pay band Contribution rate
1 Up to £13,500 5.5%
2 £13,501 to £21,000 5.8%
3 £21,001 to £34,000 6.5%
4 £34,001 to £43,000 6.8%
5 £43,001 to £60,000 8.5%
6 £60,001 to £85,000 9.9%
7 £85,001 to £100,000 10.5%
8 £100,001 to £150,000 11.4%
9 More than £150,000 12.5%

2013 to 2014

Band Whole time equivalent pay band Contribution rate
1 Up to £13,700 5.5%
2 £13,701 to £16,100 5.8%
3 £16,101 to £20,400 5.9%
4 £20,401 to £34,000 6.5%
5 £34,001 to £45,500 6.8%
6 £45,501 to £85,300 7.2%
7 More than £85,300 7.5%

2012 to 2013

Band Whole time equivalent pay band Contribution rate
1 Up to £13,500 5.5%
2 £13,501 to £15,800 5.8%
3 £15,801 to £20,400 5.9%
4 £20,401 to £34,000 6.5%
5 £34,001 to £45,500 6.8%
6 £45,501 to £85,300 7.2%
7 More than £85,300 7.5%

What happens to your contributions?

Flowchart of what happens to your contributions

Your pension contributions are paid into The Pension Fund (Hampshire Pension Fund if you are a Hampshire member, West Sussex Pension Fund if you are a West Sussex member) and not to individual pension pots.

If you contribute to the LGPS then your employer must also pay contributions to The Pension Fund, however, the employer pays much more than you do - around double what you pay.

The money in The Pension Fund is invested and these investments add more money to The Fund.

The scheme regulations determine what pension benefits will be paid (not the amount of money in The Pension Fund) so you know what benefits to expect and do not have to worry about changes in the financial markets affecting your pension.

All pension benefits are paid out of The Pension Fund, including your pension, or the pension paid to a partner or dependant in the event of your death. If a death grant is due, this is also paid out of The Pension Fund.

The government sets the contribution rates for members every year. The scheme actuary sets the employer contribution rate every three years, at a level to ensure that there are sufficient resources in The Pension Fund to meet all its liabilities.

Flexibility to pay less - the 50/50 section

The 50/50 section of the LGPS is an alternative to opting out. It is intended to be a temporary measure to assist members who may be suffering from financial hardship but still want their pension to grow.

It allows you to remain in the scheme but pay half your normal contributions and build up half the normal pension.

As a member of the 50/50 section you benefit from:

  • full life assurance cover,
  • full ill health retirement cover,
  • full survivor's benefits in the event of your death.

In other words, the above cover is the same as if you were in the main section.

When you join the LGPS you employer will automatically put you into the main section of the LGPS, where you will pay the normal contribution rate in return for normal pension build up. Once you are a member of the main scheme you can then elect, in writing, to move to the 50/50 section.

Note: If you are in the 50/50 section, your employer will have to put you back into the main section of the scheme every three years at their re-enrolment date.

For information about moving to the 50/50 section of the LGPS please see: Reduce your pension contributions.

Increasing your pension contributions

Making contributions towards a pension can be a cost-effective way of increasing your retirement benefits as contributions qualify for immediate tax-relief through your employer's PAYE system.

There are two ways you can increase your retirement benefits within the LGPS:

  • Additional Pension Contributions (APCs) - Pay regular contributions or lump sum payments to buy extra amounts of pension in the LGPS
  • Additional Voluntary Contributions (AVCs) - Pay additional contributions to build up a pension "pot" which can be used to buy annuity, increase your tax-free lump sum or both

For details on these choices, see: Increase your pension benefits.