Pension Contributions

How much will I pay?

The amount of contribution that you pay is determined by how much you earn as assessed by your employer and in accordance with the following tables:

The contribution bands for 1st April 2009 to 31st March 2010 will be:

Band	Salary Range	Contribution Rate
1	£0 - £12,600	5.5%
2	Over £12,600 to £14,700	5.8%
3	Over £14,700 to £18,900	5.9%
4	Over £18,900 to £31,500	6.5%
5	Over £31,500 to £42,000	6.8%
6	Over £42,000 to 78,700	7.2%
7	Over £78,700	7.5%

The salary bands will increase each year in line with the Retail Price Index (RPI). The RPI measures inflation in regular household expenditure, including mortgages, fuel and food.

If you work part-time, when determining which rate you should pay, your employer will have to consider the level of earnings that you would have received had you been an equivalent full-time employee.

If you are contracted to work term-time only, when determining which rate you should pay, your employer will have to consider the level of earnings that you would have received had you been employed on a full-time basis but only during term-time.

Manual Workers

If you were a member paying the protected 5% manual worker's contribution rate before 1st April 2008, you will currently be paying a different rate until 1st April 2011 when you will pay contributions in accordance with the table below.

Year	Contribution Rate
2008 / 2009	5.25%
2009 / 2010	5.50%
2010 / 2011	6.50% (or as per above table if actual pensionable salary is lower. (based on prevailing salary range in 2010/2011)
2011 / 2012	With effect from 1st April 2011 you will pay contributions in accordance with the above table.

Does my employer pay?

Your employer pays the balance of the cost of providing your benefits. Every three years an independent review, known as a valuation, is undertaken to calculate how much your employer should contribute to the Scheme. The amount that your employer has to contribute is outlined in a Rates & Adjustment Certificate that forms part of the formal valuation of the Pension Fund. The date of the last valuation was 31st March 2007 with employer contribution rates being set for the period 1st April 2008 to 31st March 2011.

In order that scheme benefits remain affordable, increases or decreases in the cost of providing those benefits may, in the future, be shared between scheme members and employers. This will be in accordance with government guidance. The Workforce Pay and Pensions Division for the Communities and Local Government issued a consultation document in February 2008 called "Sustaining The Local Government Pension Scheme in England & Wales". This document sets out the principles and propositions for analysis and comment on how best to provide a basis for the future cost-sharing the LGPS.

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