Paying less

Contents

  1. Overview
  2. Who can join 50/50 scheme
  3. How long you can stay in the 50/50 section
  4. Re-joining the main section of the scheme

Overview

There are two sections in the LGPS from 1 April 2014 - the main section and the 50/50 section.

The main section of the Scheme is the section you will be placed in. In that section, you pay normal contributions and get the normal pension build up.

The alternative is the 50/50 section. You will be able to elect to move to this section if you wish. If you do so, you will then pay half contributions but, whilst you are in the 50/50 section, you will only be building up half the normal pension.

If you have more than one employment you can elect for the 50/50 option in one, some or all your employments. 

Regardless of the section you are in, you get full life assurance cover and full ill health cover.

Who can join the 50/50 scheme

Any active member of the Scheme can elect to pay into the 50/50 section at any time.

An election to join this section must be made in writing to your employer.

Alternatively you can complete the Election to join the 50/50 section form. Once the form is complete, you must return it to your employer. 

How long you can stay in the 50/50 section

The 50/50 section is designed to be a short-term option for when times are tough financially.

Because of this your employer is required to re-enrol you back into the main section of the Scheme roughly every three years after they have reached their staging date for automatic enrolment purposes under the Pensions Act 2008. Your employer will tell you when this is if you're in the 50/50 section of the Scheme.

If you wish to continue in the 50/50 section at that point you would need to make another election to remain in that section.

If you are in the 50/50 section and move onto a period of no pay due to sickness or injury then you will be moved back into the main section of the Scheme from your next pay period if you are still not in receipt of pay at that time.

Re-joining the main section of the scheme

You can choose to revert back to the main section of the scheme at any time by informing your employer in writing or by completing the Election to re-join the LGPS main section form. 

You will then start to build up full benefits in the main section from your next available pay period.