Under the 50/50 Section of the Local Government Pension Scheme (LGPS) you will pay half your normal contribution rate to build up half your normal pension (based on 1/98th of pensionable pay).
The 2024/2025 employee contribution rates within the MAIN and 50/50 Sections of the LGPS are detailed below. These should be applied for the period from 1 April 2024 to 31 March 2025.
| Band | Annual Salary Range | Contribution Rate MAIN Section |
Contribution Rate 50/50 Section |
|---|---|---|---|
|
1 |
Up to £17,600 | 5.5% | 2.75% |
| 2 | £17,601 to £27,600 | 5.8% | 2.9% |
| 3 | £27,601 to £44,900 | 6.5% | 3.25% |
| 4 | £44,901 to £56,800 | 6.8% | 3.4% |
| 5 | £56,801 to £79,700 | 8.5% | 4.25% |
| 6 | £79,701 to £112,900 | 9.9% | 4.95% |
| 7 | £112,901 to £133,100 | 10.5% | 5.25% |
| 8 | £133,101 to £199,700 | 11.4% | 5.7% |
| 9 | £199,701 or more | 12.5% | 6.25% |
How much will I pay under the 50/50 Section?
The monthly contribution rate that you pay is determined by how much you earn as assessed by your employer every April and in accordance with a series of salary bandings. You will pay contributions at the appropriate band rate on all pensionable pay received in respect of your employment rounded down to the nearest whole pound. If you elect to enter the 50/50 section of the LGPS you will pay half of the full contribution.
Example:
The following example shows the difference between pension contribution payments under the MAIN Section and 50/50 Section of the LGPS.
A member works full-time and earns £20,000 per annum. Their contribution rate under the MAIN and 50/50 Sections would be as follows:
| MAIN Section Contribution |
50/50 Section Contribution
|
|
| Annual Pensionable Pay | £20,000 |
£20,000 |
| Pension Build Up Rate |
1/49th |
1/98th |
|
Gross monthly contribution amount |
£96.67 | £48.33 |
How will this affect my pension?
Under the 50/50 section you will be paying half of your normal pension contribution and in return you will receive half of the normal pension build up. This is demonstrated in the table below:
Example:
A member works full-time and earns £20,000 per annum. Based on this salary the amount of annual pension that would be added to their pension account at the end of each year would be as follows:
|
MAIN Section |
50/50 Section |
|
| Annual Pensionable Pay |
£20,000 |
£20,000 |
| Contribution Rate |
5.80% |
2.90% |
| Annual Pension Build Up |
£408.16 |
£204.08 |
| Lump Sum Life Cover |
£60,000 |
£60,000 |
Based on the above example the member would have £408.16 of annual pension added to their pension account at the end of the Scheme year if they were paying into the MAIN section of the scheme. If the member was paying into the 50/50 section of the LGPS they would have £204.08 of annual pension added to their pension account.
Regardless of which section you are in, you will retain full life assurance cover and you are fully protected under ill-health retirement regulations.
How long can I remain in the 50/50 Section?
Entry into the 50/50 section of the LGPS is designed to be a short-term option for when times are tough financially. Because of this your employer is required to re-enrol you back into the MAIN section of the scheme in line with their automatic re-enrolment date. This is the anniversary of the date from which your employer had to automatically enrol all eligible employees into a pension scheme in accordance with the Government's workplace pensions initiative (This is usually three years but can be longer depending on the employer's re-enrolment date). Your employer will tell you when this is if you're in the 50/50 section of the scheme. If you wish to continue in the 50/50 section at that point you would need to make another election to remain in that section. You will also be put back in to the MAIN section if you return from no pay following a period of sickness absence.
Please note: You are re-enrolled back into the MAIN section of the Scheme from the beginning of the pay period following the automatic re-enrolment date chosen by your employer. For example if your employer's re-enrolment date is 1 October 2021 you would be re-enrolled back into the MAIN section from 1 November 2021.
You can choose to revert back to the MAIN section of the scheme at any time by completing form LGS10B and sending this to your payroll department. You will then start to build up full benefits in the MAIN section from your next pay period.
How do I sign up for 50/50?
To opt in to the 50/50 section of the LGPS please complete and return the 50/50 election form and return to your payroll department.
On receipt of the completed form your Payroll Department will commence your 50/50 pension contributions from the first available pay period following your date of election.
What does my employer pay under the 50/50 Section?
Under the 50/50 section of the LGPS the employer continues to pay their full employer contribution rate.