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HOW MUCH WILL I PAY IN THE NEW SCHEME?
The Local Government Pension Scheme (LGPS) is provided for you by your employer who pays the bulk of the cost of your benefits.
How much it costs you depends on how much you are paid but it will be between 5.5 and 7.5% of your pay. The rate you pay depends on which pay band you fall into.
The amount you actually pay is far less than you think because contributions are tax free and you pay a lower rate of national insurance.
If you work part-time, your rate will be based on the full-time pay rate for your job, although you will only pay contributions on the pay you actually earn.
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Pay Bands from 1 April 2010 |
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Earnings Band Range
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Contribution rate
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1
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£0
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to
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£12,600
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5.5%
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2
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£12,600.01
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to
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£14,700
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5.8%
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3
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£14,700.01
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to
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£18,900
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5.9%
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4
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£18,900.01
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to
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£31,500
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6.5%
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5
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£31,500.01
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to
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£42,000
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6.8%
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6
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£42,000.01
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to
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£78,700
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7.2%
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7
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More than £78,700
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7.5%
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 Example 1: Rachel
Works Full-Time
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Rachel works full-time and her annual rate of pay in April 2009 was £13,000.
This puts her contribution rate at 5.8% of her pay (which works out at just under £63 a month - less after savings in tax and National Insurance).
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 Example 2: Jayne
Works Part-Time
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Jayne works part-time (18/36 hours per week) and her annual rate
of pay in April 2009 was £11,000. Her full-time equivalent annual rate of pay was £22,000. This figure determines which pay band Jayne falls into. This puts her contribution rate at 6.5% of her actual pay (which works out at just under £60 a month - less after savings in tax and National Insurance).
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