Published
29th April 2022
Monthly Assessment Review
Changes to pension contributions
The assessment of the pension contributions you pay is performed monthly rather than annually.
Reviewing contributions monthly is a much fairer way of calculating the correct contributions that are due for the benefits that you receive.
This is common practice for many employers and this has been agreed with the Trade Unions
Most people won’t see a change to their pension contributions as the amount they earn doesn’t change from month to month.
However, if your earnings change (for example if you work a large amount of overtime) you may move into a higher pension band and the contributions will increase.
If earnings go down in a particular month (if you reduce your hours for example) your contributions may decrease.
These are the bandings effective from 1 April 2026
|
Contribution table 2026/27 |
|||
|
|
main scheme |
50/50 section |
|
|
up to |
£ 18,400.00 |
5.50% |
2.75% |
|
£ 18,401.00 |
£ 29,000.00 |
5.80% |
2.90% |
|
£ 29,001.00 |
£ 47,300.00 |
6.50% |
3.25% |
|
£ 47,301.00 |
£ 59,800.00 |
6.80% |
3.40% |
|
£ 59,801.00 |
£ 84,000.00 |
8.50% |
4.25% |
|
£ 84,001.00 |
£ 119,100.00 |
9.90% |
4.95% |
|
£ 119,101.00 |
£ 140,400.00 |
10.50% |
5.25% |
|
£ 140,401.00 |
£ 210,700.00 |
11.40% |
5.70% |
|
£ 210,701.00 |
or more |
12.50% |
6.25% |
Here are some examples of how this may affect you:
|
Monthly Pay |
Annual Pay for banding purposes |
Contribution Rate |
Contributions payable on new method |
Contributions that would have been payable previously |
|
£2700 |
£32400 |
6.5% |
£175.50 |
|
|
£3200(includes £500 overtime) |
£38400 |
6.8% |
£217.60 |
£208.00 (6.5%) |
|
£1900 (reduction of hours |
£22800 |
5.8% |
£110.20 |
£123.50 (6.5%) |
The employer contributions will be similarly increased or decreased
Please see: www.lbbdpensionfund.org for more information about the benefits of the scheme or email: [email protected]
