For the Local Government Pension Scheme, the new year starts not on 1 January but on 1 April and with the start of a new scheme year, there are various developments on the horizon.
New employee contribution bands
The contribution bands for the different contributions have been updated as follows from 1 April 2025.
| Band | Actual Pensionable Pay | Main section contribution rate for that employment | 50/50 contribution rate for that employment |
|---|---|---|---|
| 1 | Up to £17,800 | 5.50% | 2.75% |
| 2 | £17,801 to £28,000 | 5.80% | 2.90% |
| 3 | £28,0001 to £45,600 | 6.50% | 3.25% |
| 4 | £45,601 to £57,700 | 6.80% | 3.40% |
| 5 | £57,701 to £81,000 | 8.50% | 4.25% |
| 6 | £81,001 to £114,800 | 9.90% | 4.95% |
| 7 | £114,801 to £135,300 | 10.50% | 5.25% |
| 8 | £135,301 and £203,000 | 11.40% | 5.70% |
| 9 | £203,001 and over | 12.50% | 6.25% |
Roughly this represents a 1.7% increase, rounded down to the nearest £100.
Increases to pensions in payment
Pensions in payment will increase by 1.7%.
Annual revaluation order
Career average pension earned up to 31 March 2025 will be revalued on 6 April 2025 by 1.7%
3-yearly valuation
On 31 March 2025 the starting gun fired on the three yearly valuation of the LGPS funds. The results of the valuation will be used to set contribution rates for employers for the next 3 years. The results for each employer and proposed contribution rates won't come out to employers until late autumn or winter of 2025.
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