Superannuation contributions for 2012/13
The Independent Public Service Pensions Commission made clear that there is a rationale for increasing pension scheme member contributions to ensure a fairer distribution of costs between taxpayers and members. As you will see from the table below, from April 1, 2012 there are seven tiers for contribution rates.
The following table shows the new-tiered contribution rates that should be applied for 2012/13. This table must be used until further notice.
2012/13 Contribution Rates before tax relief (gross)
|Tier||Pensionable Pay in 2012/13||Contribution Rate in 2012/13|
|1||Up to £15,000.99||5.0%|
|2||£15,001.00 to £21,175.99||5.0%|
|3||£21,176.00 to £26,557.99||6.5%|
|4||£26,558.00 to £48,982.99||8.0%|
|5||£48,983.00 to £69,931.99||8.9%|
|6||£69,932.00 to £110,273.99||9.9%|
|7||£110,274.00 and over||10.9%|
– The employer contributions rate remains at 14%.
– For General Dental Practitioners (GDP), Dental Services Division (DSD) will arrange for the appropriate contribution to be applied. The DSD will estimate the GDP’s tiered contribution rate and then any adjustment will be made once the GDP’s actual pensionable earnings are known.
– Part-time GDP earnings will not be converted to a whole-time equivalent value for the purposes of setting a tier.
– The table above is the latest available at the current time and will be used to set estimated contribution tiers for 2012/13. The tiered contribution thresholds are periodically updated to reflect any NHS pay rises under Agenda for Change. Any future changes will therefore be advertised and reflected in a revised table. The revised table would then be used to reassess contribution tiers when earnings for year are finalised.
– There will be further consultation on employee contribution rises for 2013/14 and 2014/15.
For further information please call 01253 404404.