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Contributing Member

Your retirement is a goal to look forward to. If your retirement is to meet your expectations, you need to plan for when you give up working.

Your retirement income and benefits, over and above the state pension, will in general be provided by Local Government Pension Scheme (LGPS), a personal pension plan or a stakeholder pension scheme.

How much will you pay into the Local Government Pension Scheme?

The rate of contributions you will pay is based on how much you are paid. When you join, and every April afterwards, your employer will determine your contribution rate. If you have more than one job your contribution rate will be determined separately for each job. If your pay changes throughout the year, your employer may decide to review your contribution rate at that time, rather than wait until the following April.

To calculate how much your contributions would be, visit the LGPS Contributions Calculator. Alternatively, here are the pay bands and contribution rates that apply in the main section of the scheme from April 2018:

 

Contribution Table 2018/2019
If your actual pensionable pay is:You will pay the folllowing:
Up to £14,1005.5%
£14,101 to £22,0005.8%
£22,001 to £35,7006.5%
£35,701 to £45,2006.8%
£45,201 to £63,1008.5%
£63,101 to £89,4009.9%
£89,401 to £105,20010.5%
£105,201 to £157,80011.4%
£157,801 or more12.5%

The contribution rates and / or pay bands will be reviewed periodically and may change in the future. This is to maintain the average contribution from employees at 6.5% and to ensure the long term costs of the scheme are managed. If you decide to join the scheme you should check your payslip to make sure that pension contributions are being deducted. Your contributions are very secure. As the LGPS is set up by Statute, payment of benefits to scheme members is guaranteed by law.

 

What if you want to pay less?

The LGPS offers you the flexibity to pay half your normal contribution rate and build up half your normal pension whilst retaining full life and ill-health cover. This is called the 50/50 section of the LGPS, it is designed to help members stay in the scheme, building up valuable pensions benefits, during times of financial hardship. Use the Contributions Calculator to see the effect on your take home pay of moving to the 50/50 section.

When you join the LGPS you will automatically be put 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 are then be able elect in writing to move to the 50/50 section. You can ask your employer for a 50/50 election form. Once you make an election you will start paying reduced contributions from the next available pay period.

The 50/50 section is designed to be a short-term option, your employer is required re-enrol you back into the main section of the scheme approximately every three years on a re-enrolment date set by them. You are also able to revert back to the main section of the LGPS at any time by informing your employer in writing. You can obtain an election form to do this from your employer.

Here are the pay bands and contribution rates that apply in the 50:50 section of the scheme from April 2018:

50/50 Section Contribution Table 2018/2019
If your actual pensionable pay is:You will pay the following:
Up to £14,1002.75%
£14,101 to £22,0002.9%
£22,001 to £35,7003.25%
£35,701 to £45,2003.4%
£45,201 to £63,1004.25%
£63,101 to £89,4004.95%
£89,401 to £105,2005.25%
£105,201 to £157,8005.7%
£157,801 or more6.25%

 

How much does your employer contribute into the Local Government Pension Scheme?

Your employer currently pays the balance of the cost of providing your benefits after taking into account investment returns. Every three years, an independent actuary calculates how much your employer should contribute to the scheme. The amount will vary, but generally your employer will contribute two thirds of the scheme's costs and the employee contributes one third.

You can view our  find out exactly how much your employer contributes by viewing our WMPF Actuarial Valuation Report.

 

How can you increase your pension benefits?

You can make extra contributions to increase your retirement benefits by making additional pension contributions (APCs) to the Fund or additional voluntary contributions (AVCs) to Prudential, the Fund's additional voluntary contribution provider. Check both options to see which would suit you most.

For more information, you can visit the LGPS member website.

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