Example
A member works full-time:
- their actual pay is £24,500 a year
- their contribution rate in the main section of the scheme is 6.5%.
This member is finding it difficult financially. They have decided to elect to take up the 50/50 section option.
The member would pay less in contributions in the 50/50 section:
-
3.25% instead of 6.5%, and
-
they would build up half the pension in the 50/50 section. Which would be £250, payable every year in retirement, compared to a pension of £500 if they were in the main section.
But remember:
-
the value of any lump sum life assurance cover payable (three times annual pensionable pay) remains the same. This is regardless of which section of the scheme the member pays into.
