How much will I pay?
Your Employer pays for most of the cost of your pension benefits. How much will it cost will depend on how much you earn, but it will be between 5.5% and 12.5% of your pensionable pay under the MAIN section of the Scheme. The contribution rates are reviewed periodically and may change in the future.
However, the amount you actually pay to be a member of the Scheme is far less than you think, as you will receive tax-relief on the contributions that you pay. Any contractual or non-contractual overtime you work is classed as pensionable – which means you will pay pension contributions on this additional money.
Mary earns £25,500 each year.
Her contribution rate will be 6.5%.
£25,500 x 6.5% = £1,657.50 per year (£138.13 per month)
After tax relief at 20%, the actual deduction will be = £1,326.00 each year (£110.50 each month)
The amount of tax relief could be different depending on your salary.
If you want to join the Pension Scheme, but are currently not able to afford the full contribution rate, you could temporarily opt to join the 50.50 section of the scheme. You will pay half the contribution rate – see how much it costs you, and build up half the pension benefits in the scheme. This would be a much better option than not joining the Pension Scheme at all, or opting out of the scheme altogether.