Reduce my contribution
If you want to reduce your contributions (payment) into your Pension, you can do so using the 50/50 scheme. This will ensure that you still retain some of your benefits, such as death in service - whilst contributing less and accruing less pension.
During your life there may be times when you are in a difficult position financially and might think about opting-out of the scheme, as a way to save money.
It’s important to remember that your pension contributions offset any tax you pay – so they help to reduce your tax liability.
In a nutshell: what you see as a deduction on your payslip is not necessarily what you’ll get back if you opt out.
What is the 50/50 Scheme?
One of the key features of the LGPS is the 50/50 scheme, which enables members to pay half rate contributions in exchange for half of their pension accrual. This may help some members who are temporarily unable, or have difficulty in paying the full amount of contributions if your financial circumstances change e.g. moving house, childcare costs, getting married.
The 50/50 scheme will allow you to remain as an active member of the scheme and pay lower contributions rather than opting out altogether.
You would then still be able to take advantage of the benefits of being an LGPS member but contribute a lower, more manageable amount.
Main features of the 50/50 scheme:
A reduction to your pension contributions by 50% and build up half of the pension (1/98th) you would have built up in the main scheme (1/49th)
Full main scheme death benefits should anything happen to you while you are in the 50/50 scheme so your family is fully protected
Automatic protection by being returned into the main scheme should you go out of pay due to sickness or injury so you are not disadvantaged
Ill health protections should you become unable to work and have to retire because of ill health.
If you wish to sign up to the 50/50 scheme you will need to complete the following form I wish to sign up to the 50/50 scheme and return to your employer.
