Bulletin 3: Member Contribution Bands 2020-2021
2020 – 2021 Contribution Bands and assessment
I have recently received information that the contribution bands are due to be revised by 1.7%. This is in line with inflation. Therefore the bands will be as follows:
Contribution Bandings 1 April 2020 to 31 March 2021| Pensionable pay | Main Scheme Contribution rate paid by member | 50:50 Scheme Contribution rate paid by member |
| Up to £14,600 | 5.50% | 2.75% |
| £14,601 to £22,800 | 5.80% | 2.90% |
| £22,801 to £37,100 | 6.50% | 3.25% |
| £37,101 to £46,900 | 6.80% | 3.40% |
| £46,901 to £65,600 | 8.50% | 4.25% |
| £65,601 to £93,000 | 9.90% | 4.95% |
| £93,001 to £109,500 | 10.50% | 5.25% |
| £109,501 to £164,200 | 11.40% | 5.70% |
| £164,201 or more | 12.50% | 6.25% |
I will circulate confirmation of the bands as soon as this has been received.
Setting employee rates from April 2020
You will need to review the rates paid by your LGPS membership with effect from 1 April 2020 and re-allocate where appropriate. You will be aware that the band is based on a member’s ACTUAL pay received. To comply with the scheme rules the employer must use the expected pay in April 2020 and to estimate any other pensionable payments expected to be earned in the year in order to set the rate.
Re-banding during the year
Once the initial band is set for contributions the employer is required to review the band during a scheme year should the employee have a material change in contractual pay (e.g. as a result of a promotion, pay award or contractual hours change) and re-band where relevant.
Employer rates and 50/50
Please note that the employer contribution rates do not similarly reduce when members are in the 50/50 Scheme.
