The 50/50 option
Why use the 50/50 option
As an alternative to opting out, or at times when money is tight, there is a choice to stay in the scheme but pay a reduced contribution. This option is commonly called the '50/50 option' or '50/50 section'.
You can elect for this at any time, and it means you pay half of the contributions you normally would pay but you only build up half of the pension during the period you pay the reduced contribution.
If you have more than one job in which you are a member of the scheme you can pay the reduced contribution in one, some or all of those jobs.
If you are paying additional pension contributions, then these will cease at the point you elect to take up the 50/50 option unless they were to cover a period of absence from work.
Survivor benefits
By paying the reduced contribution you do not affect the survivor's benefits or death in service cover you have in the Scheme. Access more information on survivor benefits.
How long the 50/50 option can be used for
The 50/50 option is designed to be a short-term solution only. You will be auto enrolled back into the main section of the scheme in line with your employer's automatic re-enrolment date, so at least after three years. You will also be put back into the main section of the scheme during any period of absence due to absence or injury where you are receiving no pay. If you wish to continue to use the 50/50 option, you must make a further election to your employer.
You can of course choose at any time yourself to move back to the main section of the Scheme and your employer will do that from the pay period following your written option.
More information and take up the 50/50 option
More information on reducing your contributions through the 50/50 section can be found on the Hampshire Pension Services website.
