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ICB - LEBC pension % contribution

  • Companion Fellow PM.Dip
  • Practice Licence
  • 50 posts
  • # 112791

A bit late as I have already signed a client up to this without reading all the material.  In the Statement of Agreed Terms and Condiitions it appears that the minimum contributions are 1% above the statutory requirement and that 1% is to be borne by the employer.

Is this a correct interpretation of the information provided?  Or is my maths completely up the creek?

  • 491 posts
  • # 112808

Yes you're right - the mimimum starting contribution with the LEBC option is 3% - 2% from the employee and 1% from the employer.

This eventually rises to 9% (not 8% - such as with NEST)

Also - the calculation is on the whole of the basic pay of the employee - not from the qualifying earnings amount as with NEST.

It makes a big difference to the contribution amounts for both employee and employer - though obviously, the reward is a much better pension at the end, mostly down to the fact that a lot more money has been put into it. 

  • 491 posts
  • # 112809

Ooops - I got that the wrong way around - the 2% is paid by the employer..........1% by the employee

When it's 9% - 4% has to be paid by the employer

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