Pension contributions and cost

Contributions are based upon your earnings. From 1 April 2014 your pensionable pay includes non-contractual overtime and additional hours. This is the amount you pay pension contributions on and the amount your pension benefits are based on.

Once an employer has identified your earnings, they will be assessed against a table of banded earnings that will determine the contributions that should be paid. The table is updated every three years.

If your pay changes during the year, due to a promotion for example, an employer may decide to review your contribution rate, as it is based on your pensionable pay or they may decide to review this at the end of the scheme year.

The current contribution bands and the online contributions calculator can be found on the LGPS member site.

How much does my employer pay?

All employers who are paying into the LGPS have a different contribution rate. Every three years an independent actuary calculates how much your employer should contribute to the Scheme to pay the balance of the cost of providing your benefits in the LGPS. The amount will vary, but generally you contribute approximately one third of the Scheme's costs and your employer contributes the remainder.