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  • 50/50 section

50/50 section

  • All members have the option to elect at any time to pay half their normal contribution and build up half of their normal pension; their accrual rate becomes 1/98th instead of 1/49th. The reduction in contribution would apply from the beginning of the next available pay period.
  • If an employee has more than one job, they can elect for the 50/50 section in one, some or all their jobs, and can elect to move between the main and 50/50 sections of the Scheme any number of times.
  • Please note an employee cannot complete a 50/50 election prior to becoming a member of the main section. Only once part of the main section they can then elect to join the 50/50 section, and if they do so before the first payroll is closed, they can be brought into the 50/50 section from the first day of their employment.
  • Any period of service built up while paying reduced contributions will be calculated at 1/98th of the member's pensionable pay (or assumed pensionable pay where applicable).
  • If a member dies in service or retires with a Tier 1 or Tier 2 ill health pension whilst in the 50/50 section, the lump sum death grant (in the case of death in service) and the amount of ill health enhancement granted (in the case of ill health retirement) will be calculated as if the member was in the main section of the Scheme.

Impact of the 50/50 section upon employer contribution rates

  • The employer contributions are not halved and remain payable in full, with the impact accounted for at the next triennial valuation.

Employer requirements

  • Members can elect to move from the main section (and vice versa) as many times as they wish. The member can request a copy of the 50/50 election form from you the employer. Please download pdf icon 50/50 Election Form [154kb]. And if a member would like to find more specific information on the 50/50 scheme please direct them to the members section.
  • Employers should action the "Official Use" section and notify payroll to adjust the contribution rate from the next pay period. A copy of the election must be forwarded to the Fund including notification of the revised contribution rate and applicable date.
  • Employers are required to maintain a record, per job, of the section the member was in at year end (or date of leaving if earlier). Employers should confirm to the Fund which section the employee was in at the end of the scheme year (or date of leaving), and if they switched sections within the scheme year - the effective date of any switches.

The 50/50 section and automatic re-enrolment

  • If an employee is in the 50/50 section they must be moved back to the main section from the beginning of the pay period following the employers' "automatic re-enrolment date". The employee would have the right to make a further 50/50 election which, if made before the payroll is closed, would mean they would have continuous 50/50 membership. Note that the initial staging date for those employers yet to meet their staging date has no implication on 50/50 elections.
  • If an employee is moved back to the main section due to absence with no pay or automatic re-enrolment the employer will need to notify the Fund of the applicable date and amended contribution rate. This also applies if an employee informs their employer that they wish to move back into the main section.

The 50/50 section and absence with no pay

  • If an employee is in the 50/50 section and goes onto no pay due to sickness or injury, or during a period of ordinary maternity leave, ordinary adoption leave or paternity leave, the employee must be moved back into the main section from the beginning of the next pay period if they are still on nil pay at that time. The employee can choose to make a further 50/50 election which, if made before payroll is closed, would mean continuous 50/50 membership.
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