How much does it cost?
A Parish or Town Council in the LGPS is required to pay pension contributions to the Pension Fund. The contribution will be a percentage of pensionable pay. The Cheshire Pension Fund operates a grouping of employers for contribution rates and should a Parish or Town Council decide to pass a resolution to join, the rate payable to Cheshire Pension Fund is currently 21.8% for 2019/20.
Please note that this “group” contribution is subject to a triennial valuation when the rate is reviewed and set for the following three years with the next valuation due in 2019 with the contribution rate reset from April 2020.
The Parish or Town Council must pay over both the employers and employees contributions to the Pension Fund each month and Cheshire Pension Fund will provide full details of how to do this once employers are admitted to the Fund.
Employees in the LGPS (known as active members) pay a rate of contribution based on their salary. Contributions are also paid on non contractual overtime and additional hours. The banding rates will increase in line with the prices index each April. The latest member contribution rates can be found here.