Contribution flexibility

Option to pay less

From April 2014 there is an option in the scheme called ‘50/50’. You can elect for this option at any time, pay half your normal contributions and build up half your normal pension.

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How does 50/50 work?

There are two sections in the scheme from 1st April 2014 – the main section and the 50/50 section. The main section of the scheme is the section you will be placed in. In that section, you pay normal contributions and get the normal pension build up.

The 50/50 section is a new option. You will be able to elect to move to this section if you wish. If you do so, you will then pay half contributions but, whilst you are in the 50/50 section, you will only be building up half the normal pension. If you have more than one employment you can elect for the 50/50 option in one, some or all your employments.

Regardless of the section you are in, you get full life assurance cover and ill health benefits.

How much would I save by electing for 50/50?

Although moving to the 50/50 section would reduce your pension contributions by half, you wouldn't necessarily see this exact effect on your net pay. This is because members of the pension scheme attract tax relief on their pension contributions. Please visit our 'cost to employees' page for an example.

Who can elect for 50/50?

Any member can elect to pay into the 50/50 section at any time. An election to join this section must be made in writing to your employer.

How long can you remain in the 50/50 section?

The 50/50 section 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 every three years. This will be carried out in line with your employer’s automatic 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 can choose to revert back to the main section of the scheme at any time by informing your employer in writing and you will then start to build up full benefits in the main section from your next available pay period.

How do I elect to move to the 50/50 section of the scheme?

If you would like to move to the 50/50 section of the scheme then please complete the '50/50 election form' and return it to the pensions section.

How do I move back to the main section of the scheme?

If you would like to move back to the main section of the scheme then please fill out the 'main section election form' and return it to the pensions section.

How much do I pay in pension contributions?

View the LGPS website to find out how much pension contributions you will pay or an example of a member paying in to the 50/50 scheme.

Our Jargon Buster may help with pensions terminology.