 |
CURRENT CONTRIBUTION BANDS
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Pay Bands from 1 April 2013 to 31 March 2014 |
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Earnings Band Range
|
Contribution rate
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||
|
1
|
£0
|
to
|
£13,700
|
5.5%
|
|
2
|
£13,701
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to
|
£16,100
|
5.8%
|
|
3
|
£16,101
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to
|
£20,800
|
5.9%
|
|
4
|
£20,801
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to
|
£34,700
|
6.5%
|
|
5
|
£34,701
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to
|
£46,500
|
6.8%
|
|
6
|
£46,501
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to
|
£87,100
|
7.2%
|
|
7
|
More than £87,100
|
7.5%
|
||
For Example:
 Rachel
Works Full-Time
|
|
Rachel works full-time and her annual rate of pay in April 2013 will be £15,768.56. This puts her contribution rate at 5.8% of her pay (which works out at £77.53 a month - less after savings in tax and National Insurance).
|
 Jayne
Works Part-Time
|
|
Jayne works part-time (18/36 hours per week) and her annual rate of pay in April 2013 will be £12,500. Her full-time equivalent annual rate of pay was £25,000. This figure determines which pay band Jayne falls into.
This puts her contribution rate at 6.5% of her actual pay (which works out at £67.71 a month - less after savings in tax and National Insurance).
|
How have the 2013 pay bands been calculated?
Since 1 April 2008, the rate of LGPS pension contribution deducted from your pay by your employer, has been based on a series of pay bands. These contribution rates range between 5.5% and 7.5%.
Since April 2011, the earnings pay bands alter according to the rate of inflation as calculated by the Consumer Prices Index (CPI) in the 12 months ending with the previous September. The CPI recorded 2.2% inflation in the 12 months ending on 30 September 2012. Consequently, pay bands were increased by 2.2% from April 2013, with the amounts rounded down to the nearest £100.
