What are the LGPS pension contribution bands?

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The Local Government Pension Scheme uses a tiered contribution system, meaning higher earners pay a higher percentage of their pay into the scheme than lower earners, rather than everyone paying a flat rate. **How the tiers work** Each LGPS fund sets contribution bands based on guidance, typically starting around 5.5% for the lowest pay band and rising through several intermediate bands (broadly in the 5.8% to 9.9% range) up to around 11.4% to 12.5% for the highest earners. The exact band thresholds are reviewed and uprated annually, usually each April, in line with the Consumer Prices Index. **Based on actual pay, not full-time equivalent** A key detail is that your contribution band is based on your actual pensionable pay for the job (i.e., part-time or term-time-adjusted pay), not the full-time equivalent salary for the role. This means two people doing the same job, one full-time and one part-time, could fall into different contribution bands because their actual annual pay differs, even though the underlying salary rate is the same. **Tax relief on contributions** Because LGPS uses the 'net pay' arrangement, your contribution is deducted from your gross pay before tax is calculated, so you automatically receive tax relief at your marginal rate -- a 20% basic rate taxpayer effectively gets a fifth of their contribution back through reduced tax, while a 40% higher rate taxpayer gets even more relief. **Multiple jobs mean multiple assessments** If you have more than one LGPS job (common among school support staff and some council workers), each job is assessed separately for contribution banding purposes, based on the pay from that specific job. **The 50/50 option** If contributions feel unaffordable at a particular time, LGPS members can elect to move to the '50/50 section', paying half the normal contribution rate in exchange for building up half the normal pension for that period (though you keep full life cover and ill-health protection) -- this is generally presented as a better option than opting out of the scheme entirely, since opting out forfeits valuable employer contributions too. **Employer contributions on top** Your own contribution is only part of the picture -- employers pay a substantially larger contribution on your behalf (often in double digits as a percentage of pay, set by the scheme's actuary), making LGPS membership a valuable benefit well beyond what you personally pay in. **Practical tip** Check your payslip or annual benefit statement to confirm which contribution band you are in, and if you believe your banding is wrong (for example, after a pay change), query it with your payroll or HR department, since bands should be reviewed whenever your pay changes significantly.

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