Tax relief
If you earn enough to pay tax, your LGPS contributions will attract tax relief when they are deducted from your pay.
If you do not earn enough to pay tax, you will still benefit from tax relief, but not through your pay. For the 2024/25 year onwards, the Government will make top-up payments to Scheme members in this group. We expect HMRC to make the first of these payments in 2026.
There are restrictions on the amount of tax relief available on pension contributions. If the value of your pension savings increases in a year by more than the standard annual allowance, you may have to pay a tax charge. Most people will not be affected by the annual allowance. You can find out more about Tax and your pension.