t
ha
W e
ar
TING
COS
ME
T
he core principles which the Scheme has been
designed around are that there should be no
increase in the cost of the Scheme to the majority of
its membership.
The average contribution rate across all funds will
remain at 6.5%, however one important change to
note is the way part time members will have their
contribution rate assessed. Contribution rates will
be determined by actual pay and not whole time
equivalent pay. This could mean many of our part
time members will pay less.
The following table shows the 9 different contribution
bands rating between 5.5% and 12.5%.
Pay bands will be increased every April in line with
the Consumer Price Index rate of inflation.
In general it will be the higher paid members of the
Scheme who will contribute more.
E
ach April, your employer will determine your
contribution rate for each employment by matching
your actual pensionable pay to the appropriate band
in the contributions table.
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.
However, one thing that hasn’t changed is you will
still continue to receive tax relief on your pension
contributions and pay a lower rate of National Insurance.
To achieve this, your pension contributions are deducted
from your pay before you pay tax or National Insurance.
Example 1
A full time teaching assistant with
an annual pen