Employer Contributions

Employer Contributions

Employers pay the balance of the cost of providing pension benefits payable on retirement from the Local Government Pension Scheme (LGPS). Every three years an independent review, known as a valuation, is undertaken to calculate how much employers should contribute to the Scheme. The amount that you have 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 31 March 2022 with employer contribution rates being set for the period 1 April 2023 to 31 March 2026.

The current employer contribution rates are shown in the Rates and Adjustment Certificate.

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.

Revision of Employee Contribution Rates 

Each year it is the responsibility of the employer to apply the appropriate contribution rate for each of their employees based on a contribution table.

The employer must then notify their employees of any revision in their contribution rate for the year ahead. 

A note about the 50/50 Section:

Under the 50/50 Section of the LGPS the member pays half their normal contribution rate, but the employer continues to pay the full employer's contribution rate.

Payment of Employer Contributions during sickness absence

During a period of no pay sickness absence, the employer contributions must be calculated on the member's Assumed Pensionable Pay (APP) figure for the relevant period of absence. The APP figure is based on the average three whole months prior to the date the member's pay first reduced.

Further information on Employer Contributions and APP can be found via the LGPS Regs website.

Monthly Employer contribution return (2023/2024)


Employer contribution return guidance (2023/2024)

Employer contribution return form (2023/2024)