Your pension may be safe, but is the future of local government?
Yesterday, Andrew Kerr announced that the employers’ contribution to the Lothian Pension Fund will be reduced. We give you the details of this, what it means to you and what it means on a broader scale.
Key points are that this
- does not affect your pension
- is happening across the UK
- provides the Council with extra funding, but this is a one off.
Now, the employer contribution to your pension fund is 22.5% of the salary bill. This money, along with the money workers pay in, is invested to create the pot of money that pays workers’ pensions.
Every three years the pension fund reviews how much employers pay in.
The change will reduce the employers’ contribution from 22.5% to 17.4% until 31 March 2027. This is a more significant change than before.Continue reading “Reduction in employers’ pension contribution”