5.3.1 classic members pay a percentage of pensionable earnings towards the cost of scheme benefits. This includes a contribution of 1.5% towards the cost of paying a widow’s, widower’s or civil partner’s pension. Members can ask to pay additional units of 1.5% of pensionable earnings either to:
reduce/clear a debt of a period of reckonable service for which they paid no contributions; or
anticipate the contributions due if they retire early with enhanced service.
You must ensure that your payroll provider is told of such an option promptly so they can start collecting the additional contributions. Since 2012, classic members have been paying a percentage of pensionable earnings towards scheme benefits.
5.3.2 premium, classic plus, nuvos and alpha members pay a percentage of pensionable earnings towards scheme benefits.
The current level of employee contribution rates can be found here.
5.3.3 partnership members can choose to pay the level of contribution they want to make. This includes paying no contributions.
Pension contributions are subject to tax relief. See www.hmrc.gov.uk for details.