Employer contribution rates and the 50:50 Section
What does your employer pay?
A typical member currently pays less than one third of the cost of their pension and their employer contributes the remainder, currently equivalent to:
19% for the Environment Agency;
21.9% for Natural Resource Wales; and
22.7% for Shared Serviced Connected Limited (SSCL)
To understand how your employer’s contribution affects your pension, it’s important to understand that the EAPF is a ‘defined benefit’ pension scheme.
In a ‘defined benefit’ scheme, your pension is calculated based on what you earn and your period of membership and not on the investment performance of the Fund. Although both you and the EA pay into the scheme during your employment, a ‘defined formula’ calculation is used to work out how much pension you’ll get, with a promise to give you a guaranteed future income each year when you retire.
Your monthly pension contributions will range between 5.5% to 12.5% dependant on your salary, and the employer contributions range between 19-22.7%. However, these contributions will not have any effect on the benefits you’ll receive due to the nature of a defined benefit scheme – as it’s based on your salary and the length of your membership in the scheme.
Employer contributions are made to ensure the pension fund has sufficient funds to be able to pay pensions for current and future members. You can read more about how pension benefits are calculated in our ‘How is my pension worked out’ factsheet at www.eapf.org.uk/resources/publications
Employer contribution rates could change after a fund valuation. We'll update this factsheet if this happens. Regardless of whether your employer’s contribution rate goes up or down, this will have no effect on the calculation of your benefits.
If you’ve chosen to enter the 50:50 Section, the contribution your employer makes does not drop.
I’m not currently a contributing member, but I’m thinking of joining – how does it work?
If you join or re-join the EAPF, you’ll become a contributing member:
If you’re a new employee (new joiners - Environment Agency employees only) – from the date you start your new employment
If you’re an existing employee (re-joining) – from the start of your next pay period (though you’re free to re-join from a later date).
In addition, you’ll pay contributions based on your assessed pensionable pay applicable to your joining or re-joining date.
The 50:50 Section
The 50:50 Section of the LGPS allows you to pay half the contributions and build up half the normal rate of pension.
If you choose to join the 50:50 Section, you can later rejoin the Main Section (and go back to paying the full contribution rate to receive full benefits), though you’ll be automatically re-enrolled into the Main Section under the following circumstances:
On reaching your employer’s automatic re-enrolment date, you’ll be re-enrolled into the Main Section from the start of your next pay period (though you’re free to re-join the 50:50 Section immediately afterwards); or
If your pay is nil as a result of being on sick or child-related leave, you’ll be re-enrolled into the Main Section from the start of your next pay period (providing you’re still on nil pay at the start of that period).
Points to note
Your assessed pensionable pay includes basic salary plus any permanent pensionable allowances, paid non-contractual overtime, and paid additional hours for part time members.
More information can be found on the updated pension contribution policy which is available on your intranet.
If you work part time, your rate will be based on the pensionable pay you’re paid.
Remember that your contributions attract tax relief at the point they’re deducted from your pay; this is achieved by:
Deducting your contribution, then
Taxing your resultant pay (meaning that you pay less tax; the tax you’ve saved is included in the contribution you pay)
However, if you don’t earn enough to pay tax, you’ll still benefit from tax relief, but not through your pay; instead, the Government will make top-up payments to you, equivalent to the basic rate of tax (essentially, the Government is paying you tax relief you didn’t get at the point your contribution was deducted).
Top-up payments are a relatively new process, and the Government have confirmed that the first round of top-up payments are likely to be made in 2026.
If you’re not a member and want to know more or would like to join, check out the pension pages on your employer's intranet and visit our website at www.eapf.org.uk/member/ive-recently-joined
What if I have questions?
If, after reading our contribution factsheet, you have questions about your assessed pensionable pay figure, please contact your payroll. If you have questions about pensionable allowances, please contact your Fund employer.
If you have any questions about your EAPF pension benefits, please contact us using the details shown on the back page.
