There are two sections of the LGPS:
- the main section
- the 50/50 section.
When you join the scheme you are automatically placed in the main section. You pay normal pension contributions in return for normal pension build up.
The 50/50 section is intended as a short term measure in times of financial hardship. You pay in half your pension contributions and build up half your pension. You can opt in to the 50/50 section at any time. If you have more than one job, you can opt for the 50/50 section in one, some or all of your jobs.
Benefits of the 50/50 section
- You pay in half your pension contributions and build up half your pension.
- Whilst in the 50/50 section a full death grant lump sum is still payable if you die in service. It is 3 times your annual pensionable pay.
- There is no impact on the value of any pension for your spouse, civil partner, eligible cohabiting partner or eligible children.
- You can opt in and out of the 50/50 section whenever you need to and as many times as you wish.
- If you are retired on ill health at any age, you remain entitled to full ill health enhancement if applicable.
Opting in to the 50/50 section
Complete the opt in form (PDF, 161.2 KB) and return it to your employer. The change in contributions will take effect from the next available pay period.
Contributions
The table shows the contributions that you pay in the main section or the 50/50 section from 1 April 2024:
| Actual annual pensionable pay for an employment | Main Section | 50/50 Section |
|---|---|---|
| Up to £17,600 | 5.5% | 2.75% |
| £17,601 to £27,600 | 5.8% | 2.90% |
| £27,601 to £44,900 | 6.5% | 3.25% |
| £44,901 to £56,800 | 6.8% | 3.40% |
| £56,801 to £79,700 | 8.5% | 4.25% |
| £79,701 to £112,900 | 9.9% | 4.95% |
| £112,901 to £133,100 | 10.5% | 5.25% |
| £133,101 to £199,700 | 11.4% | 5.70% |
| £199,701 or more | 12.5% | 6.25% |
Use the contribution calculator to find out your band and what you pay
Example of contributions and pension
You earn £1,000 each month. You pay 5.5% of your pay, which is £55 each month.
Your personal circumstances change and you are experiencing a period of financial difficulty. You opt into the 50/50 section of the scheme. You now pay 2.75% of your pay, which is £27.50 each month.
When you were paying the full contribution you built up a pension of £244.90 each year. Now you are paying half your contributions, you build up a pension of £122.45 each year.
Moving back to the main section
You can opt in and out of the 50/50 section whenever you need to and as many times as you wish. You can rejoin the main section of the scheme at any time. If you have more than one job, you can opt in and out in one or more jobs. Complete the opt in form (PDF, 161.2 KB) and return it to your employer.
Impact on death benefits
Whilst in the 50/50 section a full death grant lump sum is still payable if you die in service. It is 3 times your annual pensionable pay.
There is no impact on the value of any pension for your spouse, civil partner, eligible cohabiting partner or eligible children. Find out about death in service
Impact on ill health benefits
If you are retired on ill health at any age whilst in the 50/50 section, you remain entitled to full ill health enhancement if applicable. Find out about ill health retirement
Period of no pay
If you move into a period of no pay due to sickness, maternity, paternity, adoption or shared parental leave whilst in the 50/50 section, you move into the main section of the scheme from your next pay period of no pay. Find out about absence from work
Being automatically moved back in to the main section
The government direct that, from time to time, your employer must automatically re-enrol eligible employees into a pension scheme. If you are in the 50/50 section at this date, you are automatically moved back into the main section of the scheme.
Your employer writes to you when this is going to happen. If you wish to remain in the 50/50 section at this time, you must complete the opt in form (PDF, 161.2 KB) again and send it to your employer.