You also pay reduced National Insurance contributions because the Fund is contracted-out of the State Second Pension.
If you work part-time you contribute 5% of your pro-rated pensionable salary.
Your employer makes contributions to meet the balance of the costs of the Fund. The Actuary regularly looks at funding levels and advises on how much each employer should contribute, so the amount can vary. At the moment the Fund is in deficit so:
- The principal employer is paying 6.2 times the amount its employees pay
- All the other participating employers are paying additional contributions over a period of ten years, as well as paying more than three times the amount their employees pa
You can find full details in the Trustees' Annual Report and Accounts, which can be found in Fund documents.
Changes to contributions
Contributions normally change in January of each year and are based on pensionable salary in the previous November.
Contributions remain the same for the calendar year unless working hours change. In this case they will be based on your pro-rated pensionable salary following each change.
When contributions stop
Your contributions stop when you retire or leave service. While you are in service they will only stop if you:
- Complete 40 years' pensionable service and choose to stop paying contributions
- Reach age 65 and choose to stop paying contributions
- Opt out of the Fund
- Are an Existing Member and choose to stop paying contributions when you reach age 60
Increasing your contributions
You can increase your contributions by joining the Additional Voluntary Contributions Plan.
If your pay falls
Occasionally, when changing jobs, your pensionable salary may fall. If this happens the pension that you have already earned is protected.