The amount of pension a member builds up is based on a set formula as the LGPS is part of a defined benefit scheme, this means it is not driven by investment performance, members are guaranteed a pension for life, which is increased each year in line with inflation.
To help fund members pensions, employer and employee rates are reviewed on a regular basis with investment returns also contributing. Employers go through a triennial valuation every three years with employees rates reviewed on an annual basis.
You can find out more about our investments by visiting our investment pages.
The contribution rate members pay in the Local Government Pension Scheme (LGPS) is based on how much an employee is paid, and which pay band they fall into, each year these are reviewed with the 2025/26 now ready.
There are nine different pay bands with contribution rates ranging from 5.5% to 12.5% of pensionable pay in the main section. The 50/50 Section contribution rates range from 2.75% to 6.25%.
The following pay bands and contribution rates will apply in the main and 50/50 sections of the LGPS respectively from 1 April 2025 until 31 March 2026 (inclusive):
Employee Contributions rates for the period 1 April 2025 to 31 March 2026
| BAND | ANNUAL PENSIONABLE PAY FOR AN EMPLOYMENT | CONTRIBUTION RATE FOR THAT EMPLOYMENT | |
|---|---|---|---|
| Main Section | 50/50 Section | ||
| 1 | Up to £17,800 | 5.5% | 2.75% |
| 2 | £17,801 to £28,000 | 5.8% | 2.9% |
| 3 | £28,001 to £45,600 | 6.5% | 3.25% |
| 4 | £45,601 to £57,700 | 6.8% | 3.4% |
| 5 | £57,701 to £81,000 | 8.5% | 4.25% |
| 6 | £81,001 to £114,800 | 9.9% | 4.95% |
| 7 | £114,801 to £135,300 | 10.5% | 5.25% |
| 8 | £135,301 to £203,000 | 11.4% | 5.7% |
| 9 | £203,001 or more | 12.5% | 6.25% |
If a member has multiple part time jobs, each job is assessed separately by their employer, who will determine the relevant contribution band by estimating the annual equivalent of the actual pay to be received in a full scheme year (1st April to 31st March).
Please note it is the employer who decides when the contribution rate is reviewed, although this must happen at least once a year. If this results in a change to the members contribution rate, the EMPLOYER must let the member know.
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