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COSTS
FOR PROSPECTIVE MEMBERS
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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% |