Tiered Contributions - Changes

Member contributions are based on their salary, so the more they’re paid, the higher their contributions. From 2015 the new member contribution rates are shown below:

Annual rate of pensionable earnings

Member’s contributions rate

Up to £25,999


£26,000 to £34,999


£35,000 to £41,499


£41,500 to £54,999


£55,000 to £74,999


£75,000 and above


Further communications will be issued shortly, providing more detail on how to calculate and what is and isn't included. Please ensure that members are aware of the changes to their contributions.

Part-time members - changes

In the past, for someone working part-time, you looked at the row corresponding to the member’s full-time equivalent salary. From April 2015, this will change; instead, you’ll look at their actual part-time earnings.

For example, if someone worked 50% and had a full time equivalent salary of £50,000, their actual earnings would be £25,000. Under the old structure, the member would pay 10.2% of £25,000. Under the new structure they’ll pay 7.4% of £25,000.

Those working overtime

In the Career Average arrangement (but not the Final Salary), overtime is included in the salary used to work out the contribution amount but not in working out which tier to use.

Based on the example above if someone was in the Career Average Scheme and earned £1,000 of overtime, they would pay 7.4% of £26,000. (Please note that the £1,000 overtime doesn’t change the contribution rate).

Employer Contributions

The contribution rates for employers are:

  • 14.1% from 1st April 2015 until 31st August 2015 inclusive
  • 16.4% plus an administration charge of 0.08% from 1st September 2015 (16.48% in total)