There are two setions to the Local Government Pension Scheme (LGPS). There is the normal section, known as the Main Section and there is the 50/50 Section. The Main Section is where you pay normal contributions and receive the normal pension build up. With the 50/50 Section you pay half your normal contributions to build up half your normal pension.
How much will it cost you to join the 50/50 Section?
The following table shows the contribution bandings that apply in the Main Section and the 50/50 Section from 1st April 2023 to 31st March 2024:
| main scheme | 50/50 section | ||
| up to | £ 17,600.00 | 5.50% | 2.75% |
| £ 17,601.00 | £ 27,600.00 | 5.80% | 2.90% |
| £ 27,601.00 | £ 44,900.00 | 6.50% | 3.25% |
| £ 44,901.00 | £ 56,800.00 | 6.80% | 3.40% |
| £ 56,801.00 | £ 79,700.00 | 8.50% | 4.25% |
| £ 79,701.00 | £ 112,900.00 | 9.90% | 4.95% |
| £ 112,901.00 | £ 133,100.00 | 10.50% | 5.25% |
| £ 133,101.00 | £ 199,700.00 | 11.40% | 5.70% |
| £ 199,701.00 | or more | 12.50% | 6.25% |
Will the 50/50 Section affect your life assurance, ill health cover and survivor benefits?
Regardless of whether you are contributing under the Main Section or the 50/50 Section, you will get full life assurance cover, full ill health cover and full survivor benefits in the event of your death.
How will your pension build up in the main and 50/50 Section?
The example below shows the difference between the contributions you pay, and the pension you build up between the Main Section and the 50/50 Section, using an annual pensionable pay of £18,000.
| Main Section | 50/50 Section | |
| Gross Contribution: | £1,004 (5.80%) | £522 (2.90%) |
| Pension Build Up: | £367.35 (1/49th) | £183.67 (1/98th) |
| Life Assurance Cover: | £54,000 (3 x £18,000) | £54,000 (3 x £18,000) |
How do you join the 50/50 Section?
If you would like to join the 50/50 Section of the pension scheme, contact your Employer / Pension Fund to request a 50/50 Election Form. If you have more than one job / post you will need to complete an Election Form for each job / post.
How long can you contribute to the 50/50 Section?
The 50/50 Section is designed to be a short-term option to help you during periods of financial hardship. There is no time limit to how long can remain in the 50/50 Section of the scheme. However, as part of the automatic enrolment process, you will be brought back into the Main Section every three years on the full contribution rate. If you want to remain in the 50/50 Section, you will need to complete a new 50/50 Election Form.
Can you move back into the Main Section?
Yes, you have the option to move back into the Main Section at any time. You will need to complete an Election Form to rejoin the Main Section of the Scheme. You will then start to build up full benefits in the Main Section from the next pay period.
Can you pay additional contributions?
If you are in the 50/50 Section of the pension scheme and paying or considering paying additional contributions, please contact the Pension Fund to discuss how this will impact on the 50/50 Section.
Can your Employer ask me/force me to join the 50/50 Section?
Your employer cannot ask you or force you to join the 50/50 Section of the scheme. If you feel your Employer is encouraging you to join the 50/50 section of the pension scheme, please inform The Pensions Regulator (TPR). You can do this through their website: www.thepensionsregulator.gov.uk
Can the Pension Fund give me Financial Advice?
Please note that the Pension Fund is unable to provide any financial advice. Once you have considered this information, you may need to seek Independent Financial Advice before making a decision.
