As an employer you are responsible for the deduction of appropriate rates of employer and employee contributions from your active members in the Local Government Pension Scheme.
Your employer contribution rate is reassesed every three years following a valuation of the Fund by our Scheme Actuary. LGSS Pensions will advise you of the correct rate following this actuarial assessment.
You should always make sure you are 100% clear of the correct employer contribution rate to collect from each April.
It is your responsibility to determine the correct rate of employee pension contributions to collect from each member in the Scheme. The amount of employee contributions that are due is determined by statutory tiered contribution bands. The band an individual falls within is dependent on their actual pensionable pay.
It is your responsibility under the LGPS Regulations to make a reasonable assessment of which contribution band an individual falls within. You must review the appropriate band and rate each April and you may also review the band again on any material change.
Example wording of Employer notification of employee contribution rate may help when communicating to your employees.
The employee contribution bands for the period 1st April 2017 to 31st March 2018 are:
|Actual Pay £||Main Section Contribution Rate %||50/50 Section Contribution Rate %|
|Up to £13,700||5.50%||2.75%|
|£13,701 to £21,400||5.80%||2.90%|
|£21,401 to £34,700||6.50%||3.25%|
|£34,701 to £43,900||6.80%||3.40%|
|£43,901 to £61,300||8.50%||4.25%|
|£61,301 to £86,800||9.90%||4.95%|
|£86,801 to £102,200||10.50%||5.25%|
|£102,201 to £153,300||11.40%||5.70%|
|£153,301 or more||12.50%||6.25%|