Contribution rates
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Contribution Rates
The contribution rate that a member pays depends upon their annual pensionable salary.
This is the actual pensionable salary they receive, not their Full Time Equivalent (FTE) salary.
Every year, the contribution bands are increased by Consumer Price Index.
This year, the increase is 10.1%. The following table shows the contribution bands for the 2024/25 financial year.
You must notify the member when they start their employment of the contribution rate that you have assessed as the correct rate they should be paying.
Where there has been a material change in the member's pensionable pay during the year, or a change of employment, you may determine that a different band applies and have the option to change the contribution rate during the course of the financial year. You must notify the member as soon as is reasonably practicable, preferably before the change, of the new contribution rate and when this will take effect.
The contribution rate will need to be assessed against the new bandings and adjusted as necessary in the pay period in which 1 April falls.
If the member has received reduced pay due to sickness, child related leave, reserve forces leave or other absence from work then this is not a material change and should be disregarded for assessing or reviewing contribution band rates.
The contribution rate is set for each individual employment, so if the member has multiple employments, they may pay different contribution rates for each employment.
Contribution Rate Table 2024/25
The contribution rate applicable to an employment is shown in the following table, with the contribution rate specified in the third column (or fourth column if the member is in the 50:50 section of the scheme) applicable to the band of pensionable pay specified in the second column into which the active member's annual pensionable pay, rounded down to the nearest whole pound, falls.
| Band | Actual pensionable pay for an employment | Main section contribution rate for that employment | 50/50 section contribution rate for that employment |
|---|---|---|---|
| 1 | Up to £17,600 | 5.50% | 2.75% |
| 2 | £17,601 to £27,600 | 5.80% | 2.90% |
| 3 | £27,601 to £44,900 | 6.50% | 3.25% |
| 4 | £44,901 to £56,800 | 6.80% | 3.40% |
| 5 | £56,801 to £79,700 | 8.50% | 4.25% |
| 6 | £79,701 to £112,900 | 9.90% | 4.95% |
| 7 | £112,901 to £133,100 | 10.50% | 5.25% |
| 8 | £133,101 to £199,700 | 11.40% | 5.70% |
| 9 | £199,701 or more | 12.50% | 6.25% |