Will I build up less pension?

The LGPS works out your pension using your pensionable pay each year. If a salary sacrifice scheme lowers your pensionable pay, you’ll build up less pension for that period.

Example

Pay: £18,000

Salary sacrifice: £3,000

Pensionable pay: £15,000

Pension built up:

£15,000 ÷ 49 = £306.12 a year

Without salary sacrifice:

£18,000 ÷ 49 = £367.35 a year

Difference:

£61.23 less pension each year