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Pension scheme information - LGPS 2014

How are employee contributions calculated?

Employee contributions in the 2014 Scheme are banded in a similar way to the 2008 Scheme. However, from 1st April 2014 there are nine bands as opposed to seven in the 2008 Scheme.

In the 2014 Scheme the appropriate band is determined by the actual pensionable pay, not the FTE pensionable pay for the employee.
 
The bands of contribution rates are detailed below for contributions taken in respect of pensionable pay received from 1st April 2014. The employee pays contributions at the appropriate band rate on all applicable pensionable pay received in respect of that job (or at half that rate if the employee is in the 50/50 section).
 
In the 2014 scheme, if you work part time, your banding will be based on your actual pensionable pay. This is a change from the 2008 scheme which used an employee's full time equivalent pensionable pay to determine the employee contribution. This may mean that part time employee's will pay less pension contributions.
In the 2014 scheme, if you are a casual employee your contribution rate will be based on the pensionable pay you receive in a particular month multiplied by 12. This means that your pension contribution could change each month.     

1
Up to £13,500
5.5%
2
£13,501 to £21,000
5.8%
3
£21,001 to £34,000
6.5%
4
£34,001 to £43,000
6.8%
5
£43,001 to £60,000
8.5%
6
£60,001 to £85,000
9.9%
7
£85,001 to £100,000
10.5%
8
£100,001 to £150,000
11.4%
9
£150,001 or more
12.5%

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How are employee contributions calculated for employees with more than one job?

If a person holds more than one employment and these are treated as separate jobs, each job (and the pensionable pay from that job) is assessed separately when determining the contribution rate for each job. Thus, one job could have a rate of 5.8% and the other a rate of 6.5%. Conversely, if the employer determines that a single employment relationship exists e.g. two concurrent employments where, if one is terminated, the other must be terminated at the same time or two sequential employments without a break (e.g. a promotion) then the pay from each job should be combined to determine the single contribution rate.

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Will I pay pension contributions on Non-Contractual Overtime?

Yes. From 1st April 2014 you will pay pension contributions on all overtime payments and this will be included when calculating your pension, building a bigger pension pot for you when you retire. However non-contractual overtime will not be included when calculating the employee percentage contribution to be deducted from your pay.

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How are employee contributions calculated for work completed prior to 1 April 2014?

If you receive payment for work completed prior to the 1st April 2014, in April 2014 or subsequent months your employee contribution will be calculated using the applicable employee percentage under the LGPS 2008 scheme regulations.

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How are employee contributions calculated for arrears of pay relating to periods prior to April 2014

If you are paid arrears of pay after 1st April 2014, relating to a period prior to 1st April 2014, your employee contribution will be calculated using the LGPS 2008 scheme regulations. The calculation will be based on the particular employee percentage applicable in the month(s) to which the payment relates.

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If you disagree with your contribution banding

Please contact; AskHR on 01772 535355 or via e-mail on AskHR@lancashire.gov.uk.  
If you remain dissatisfied with any decision affecting you made in relation to the Local Government Pension Scheme, you have the right to ask for it to be looked at again. For more details follow this link Your Pension Service - Appeals

 

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