LGPS Contribution Rate Changing Based on Monthly Pay

markavfc2

Hi All,

I am in the Local Government Pension Scheme and have been since 1991. My current annual pay is £47754 so I fall within the 6.8% pension contribution rate bracket.  I had an overtime payment in my May pay totalling £1200 but this is not regular overtime and I will earn no more than a further £1000 in overtime this financial year meaning my annual salary will be around £50000 and well below the £57,701 threshold to go into the 8.5% contribution rate

My employer however has put my contribution rate up to 8.5% in May and stated that pension rates are based on monthly earnings and not annual earnings. I don't think this is correct and think they are based on annual earnings and the pension contribution rate should not go up and down based on monthly changes due to infrequent over time. 

Does anyone have any experience/advice on the above please.

molerat

https://www.lgpsmember.org/2025/02/10/new-contribution-bands-2025/

https://www.lgpsmember.org/your-pension/the-essentials/your-contributions/

Every April your employer will decide your contribution rate. If you have more than one job, your employer will set your contribution rate separately for each job.

They can change the rate but only against the annual income, not on a 1/12th basis.

edit.  employer guide on contribution rates https://lgpslibrary.org/assets/gas/ew/Pv4.5c.pdf

Maybe @Silvertabby could comment