From April 2014 there is a new contributions banding table, the rate of contributions you pay will be based on your actual pensionable pay and if you get paid non-contractual overtime you will also pay contributions on this pensionable pay. In the new scheme there are nine different contribution banding rates between 5.5% and 12.5%.
If you elect for the 50/50 section, you will pay half your normal contribution rate for the period you are in this section of the Scheme. For more information on the 50/50 section of the Scheme, please read the contribution flexibility section.
2016/2017 Member Contribution Table - From 1 April 2016
|Pay Bands||Contribution Rates|
|Up to £13,600||5.5%|
|£13,601 - £21,200||5.8%|
|£21,201 - £34,400||6.5%|
|£34,401 - £43,500||6.8%|
|£43,501 - £60,700||8.5%|
|£60,701 - £86,000||
|£86,001 - £101,200||10.5%|
|£101,201 - £151,800||11.4%|
Assessing your rate of contributions
Each April, your employer will decide your appropriate rate of contributions for each employment by matching your actual pensionable pay to the appropriate band in the contributions table. It is intended that contribution rates and/or pay bands will be reviewed on a regular basis and may change in the future.
If your pay changes during the year, your employer may decide to review your contribution rate. If this results in a change to your contribution rate, they will let you know.
And remember… From April 2014 you will continue to receive tax relief on your pension contributions. To achieve this, your contributions are deducted from your pay before you pay tax.