COSTS FOR PROSPECTIVE MEMBERS

  

NILGOSC is a final salary related scheme. The pension and lump sum which you receive on retirement will be based on service and final years pay, unlike other Schemes where your pension may be linked to the Stock market and therefore liable to fluctuate.

 

Members pension contributions are fixed at 6% of pensionable pay.

 

(If you were employed as a manual worker prior to 1st February 2003 and were either a member of the scheme or had a right to be, you retain the right to contribute at 5%)

 

 

Pensionable pay- this is the total of all salary, wages, and payments such as contractual overtime, shift allowance, bonus, acting up allowance.  It does not include non-contractual overtime, traveling or subsistence allowance, or pay in lieu of holidays.

 

As a member of NILGOSC you pay a lower rate of National Insurance and receive tax relief on your pension contributions (see below).

 

Annual Earnings

 

£18000

 

 

 

Paid Monthly

 

 

 

   6%

Contribution

 

 

£90.00

Less NI Rebate

 

 

£17.97

Less Tax Relief

 

 

£19.80

Net Contribution

 

 

£52.23

 

 

 

 

Actual Percentage

 

 

3.48%

 

 

The Employers contribution is determined by the Scheme Actuary every 3 years.  The Actuary determines what contribution is required by employers to meet the overall cost of the Scheme, and can vary. 

 

The current employer contributions depend on the date they were admitted to the Scheme and are shown below.

 

Date of admittance

Rate from 1.4.05-31.3.06

Rate from 1.4.06-31.3.07

Rate from 1.4.07-31.3.08

Before 1/4/1999

8.5%

11%

13%

1/4/1999-31/3/2002

12%

13%

13%

After 31/3/2002

13%

13%

13%