Overview of Contribution Rates

Employee contributions to the main scheme are calculated using salary bands that are based on actual Annual Pensionable Pay for a full scheme year.

The employee pays contributions at the appropriate band rate on all pensionable pay received for that job (or at half that rate, if the employee is in the 50/50 section).

For calculating the Annual Pensionable Pay you can choose between different frequencies (see calculation card Public Sector Payroll Information on PSU or TRU level):

• Monthly or Periodically ( default value if nothing is selected: valid for monthly or lunar frequencies)
• Quarterly
• Semiannually
• Annually

Although you must reassess the appropriate band and rate each April, you can also review and change them periodically or when there is a material change in pay.

The employer contribution rate is applied to all employees in your organization. It is a percentage of an employee’s pensionable earnings for the period or, if they are on an assumed pay absence, the assumed pay balance for the period.

See the Absences and Assumed Pensionable Pay topic for more information on contributions calculations during assumed pay absences.