At the moment, the combined contribution rate is 30.7% – you pay 9.6% of your salary, and on top of the salary they pay you, employers pay 21.1% to the scheme.
In October, the combined rate is due to rise to 34.7%, agreed as part of the 2018 valuation. Your contribution will go up to 11%, and employers will pay 23.7%.
The Scheme Actuary has set out the cost of the contributions that would be needed to maintain the same level of benefits in future in the ‘Rule 76.1 report’. This report shows that the combined rate will need to rise to at least 42.1% to provide the same level of benefits in the future as members are building up now.
However, even this rate depends on employers committing to measures to ‘strengthen the covenant’, which means committing to support the ongoing funding needs of the scheme for the long-term, based on a range of possible future circumstances.
The 76.1 report sets out higher rates that would apply if employers don’t feel they’re able to agree with the long-term commitments required to secure a rate of 42.1%.
The level of commitment that employers are prepared to give, has not yet been agreed. In addition, the JNC has not yet decided how the increase in contributions will be shared between members and employers, so at this stage, we can’t say what your contribution rate will be.