planning your retirement

Transcription

1 JANUARY 2013 planning your retirement Subject 1

2 A new beginning Retirement has been described as many things, and if you approach it in the right way, you could look upon it as the longest holiday of your life. As you embark on this new time in your life, you are bound to feel mixed emotions - hopefully excitement and anticipation, but maybe a little uncertainty too. At a time like this, the last thing you want is to feel left in the dark about your pension, so we have produced this booklet to help you plan your retirement whilst you are still at work. Please remember, this is only a guide, and we have deliberately used simple terms wherever possible, and cut out much of the technical detail which appears in the regulations. But it is the actual regulations which will be used in the event of any dispute or disagreement. Please note: this guide only applies to people retiring April 2008 onwards.

3 contents What benefits are based on 4 Your benefits package 7 Normal retirement age 10 Retiring before 65 at your own choice 11 Retiring early through ill health 15 Retiring early through redundancy or efficiency 17 Flexible retirement 18 Late retirement 19 If you have paid extra contributions 20 Sorting out the paperwork 26 Income tax in retirement 28 Your pension & the cost of living 29 Lump sum life cover 30 Pensions for your dependants 31 Keeping in touch 33 How to complain 34 Outside organisations 35

4 What benefits are based on 4 What benefits are based on The benefits package consists of an inflation proof pension paid for your lifetime and a one off tax free lump sum either as standard or as an option. We re a final salary scheme, which means your benefits are based on two main ingredients: final pay and membership. So let s look at these first... Final pay The pay we will use to work out your benefits is the same type of pay that you have been paying contributions on, in other words: Basic pay Bonus Contractual overtime Shift allowance Standby allowance So this may not include all your pay, as it will not include things like non contractual overtime or car allowance, and extras like rent free accommodation will only be included if spelled out in your contract. We actually use your final pay - and normally this means your pay over the last 12 months up to retiring, but we can use one of the two years before that if better. There are also some occasions when we don t have to use your actual final pay, and these are...

5 Pay cuts: When you retire, if you have had a pay cut in your last 10 years, you can ask your employer to use an earlier better pay instead. You can choose the average pay from any three consecutive years out of the last 13 years, ending with a 31 March. Especially after adding inflation proofing too, this can often mean better benefits. Your employer cannot refuse you this option, but they may not offer it unless you ask! By the way, in our newsletters etc, you may have seen this referred to as the looking back in time option. Sick pay: If you are off sick on reduced or no pay in your last three years, we will work out your benefits on the pay you would have got if you had been working. Membership The other important ingredient for working out your benefits is membership. This is worked out to the day, and includes... How long you ve been a member Membership transferred from other pension schemes Membership you have bought Membership from transferring in an AVC Membership you get because of ill health Any other membership you are given Less any breaks in membership, as explained opposite. Breaks in membership: If you have ever been off work on reduced or no pay, you may have lost some membership, and this in turn will mean your benefits will be less. Breaks can include maternity leave, absence with reduced or no pay, strike breaks, and absence without permission. Please ask if you need to know more. Men s membership reduction: If you have been married during your membership, any membership you have before April 1972 has been reduced by 11% unless you have paid extra. Please note: The pay cut protection covered on this page only relates to pay cuts which took place from 1 April 2008 onwards. (Similar but different rules were in place before this). What benefits are based on 5

6 If you have ever been part time, this can affect both your pay and your membership: Pay: If you are part time when you retire, we will always use the full time pay for your job to work out your benefits. Membership: Any periods you have worked part time count for less when working out your benefits. And if you have ever changed your hours, each period will count as a different block of membership. When you retire, we will add all the blocks of membership together to get your total membership. Example Joan is about to retire, after working for 25 years as a school cook. She has been part time for the last ten years (working half the hours), but has been full time in the past. Here s how we will treat her pay and membership... Pay: Joan s actual part time yearly pay: 6,000 Full time yearly pay for working 12,000 out her benefits: Membership: 15 years full time: 15 years 10 years on half the hours: 5 years Total for working out benefits: 20 years 6 What benefits are based on

7 Your benefits package As a member you can look forward to a guaranteed package of benefits to enjoy when you retire. This includes, an income for your lifetime which will go up in line with the cost of living, and a tax free lump sum either as standard or as an option First we take your membership before 1 April 2008, and use it to work out your benefits as follows: Pension = Final Pay x Membership 80 plus Lump sum = Final Pay x Membership 80 x 3 Then we take your membership from 1 April 2008, and use it to work out your benefits, as shown below: Pension = Final Pay x Membership 60 So, this gives a bigger pension but no automatic lump sum. Your benefits package 7

8 Example Lorretta had already built up 28 years membership before April 2008, and by the time she retires in 2014 she will also have 6 years from April Let s use her current pay of 20,000 to illustrate her benefits... Benefits before April 2008 Pension = 20,000 x 28 years 80 = plus Automatic lump sum = Pension x 3 = Benefits from April 2008 Pension = 20,000 x 6 years 60 = 7,000 21,000 2,000 But no automatic lump sum. So in total, Lorretta s standard package of benefits gives her a pension of 9,000 and a lump sum of 21,000. Bigger lump sum You don t have to take the standard package of benefits we have just looked at. Instead you can choose to give up some pension and turn it into a lump sum instead. If you want to do this, you get an extra 12 of lump sum for every 1 of yearly pension you give up. Suppose Loretta chooses to give up 1000 of her yearly pension, this will boost her lump sum by 12,000, so in total she will now get: Smaller pension: 8,000 Bigger Lump sum: 33,000 Of course this is just one example - there are many other combinations... 25% limit Because the lump sum is tax free, HM Revenue & Customs have set a limit on how big a lump sum you can take. After converting any pension to lump sum we use a standard formula to value your total pension pot and the lump sum can be no more than 25% of its value. We will let you know how this limit affects you as part of the retirement process. 8 Your benefits package

9 The choice is yours Only you can decide whether or not to go for the bigger lump sum - it s a personal decision. But here are some of the things you might want to think about when making up your mind... Tax If you will pay tax on your pension, then in real terms it will cost you less than 1 to boost your lump sum by 12. For example if you pay tax at the standard 20%, it will only cost you 80p from your net yearly pension to get an extra 12 of tax free lump sum. Spend spend spend! For some people, this is a once in a lifetime chance to take the holiday of a lifetime, or some other well deserved treat. You might think it s well worth exchanging a little pension to help you get that extra money up front. What s your innings? Remember, once you ve swapped pension for lump sum, that reduction will always be there. If you come from a family with a long life expectancy, and expect to draw your pension for a long time, you may feel it will cost you too much over the long term to boost your lump sum in this way. No effect on dependants pensions By choosing the bigger lump sum option, don t worry that this will affect any dependants pensions. Pensions for husbands, wives, civil partners or nominated cohabiting partners are all based on pay and membership. Your benefits package 9

10 Normal retirement age The Scheme s normal retirement age is 65. This means that if you retire at 65, there are no early retirement reductions, no matter how little membership you have built up. To draw your benefits before 65, you must have at least three months membership, or brought in a transfer from another scheme. Retiring before age 65 Of course you don t have to retire at 65 - there are many ways of retiring at other ages, and these include: Retiring early at your own choice Retiring early through ill health Retiring through redundancy or efficiency Flexible retirement Late retirement We have shown each of these different types of retirement in their own sections. Please make sure you understand which one applies to you, as there can be quite a big effect on your benefits. In some cases benefits are enhanced, and in some cases benefits are reduced! 10 Normal retirement age

11 Retiring before 65 at your own choice You can ask to retire before 65 at the following ages: 60 onwards: no permission needed 55 to 59: only possible if your employer agrees. And watch out, in many cases, you will face early retirement reductions. This depends on various factors, such as when you joined the Scheme, and how much membership you have built up. If you joined before 1 October your benefits may be reduced by a percentage if you retire early at your own choice. This depends on whether you pass something called the 85 test, and when you were born, as explained on the next page. If you joined on or after 1 October your benefits will be reduced by a percentage if you retire early at your own choice before age 65. The reductions depend on how long before 65 you draw your benefits, and are shown in the table later in this section. Retiring early at your own choice 11

12 The 85 test If you have long service, the 85 test can help avoid or reduce the reductions which would otherwise apply if you retire early at your own choice. To do the 85 test, you simply add together your age and the membership you have built up, at the point you retire. If you score 85 or more you pass the 85 test. Tip When doing the 85 test... Ignore part years (in other words round your age or membership down to the nearest whole year) Count any part time membership at its full calendar length If you do pass the 85 test when you retire: this will help reduce or avoid the reductions. How much protection you have depends when you were born - see the examples on the next page. If you don t pass the 85 test when you retire: in this case you will face the reductions as shown later in this section. 12 Retiring early at your own choice Remember, passing the 85 test in itself doesn t allow you to retire before 60! Only your employer can allow this. Only applies if you joined before 1 October 2006

13 Born before 1 April 1956 As long as you pass the 85 test when you retire, benefits based on membership up to 1 April 2016 will not be reduced at all. But do watch out if you retire after this date. Dave was born in May 1955, and joined the Scheme when he was 35, so he will have built up 25 years by age 60. Suppose he chooses to retire at age 60 (in 2015) he will have passed the 85 test, and because of the date he was born, his benefits won t be reduced at all. Example Born on or after 1 April 1960 As long as you pass the 85 test the benefits built up before 1 April 2008 will not be reduced at all. But the benefits you build up from this date will be reduced by the percentages shown on the next page. Born between 1 April 1956 & 31 March 1960 As long as you pass the 85 test the benefits you built up before 1 April 2008 will not be reduced at all. And as long as you pass the 85 test before 1 April 2020, benefits based on membership from 1 April 2008 to 1 April 2020 will be reduced on a tapered basis. In other words just part of the reductions shown on the next page will apply. Example Pat was born on 1 April 1959, and joined the Scheme at 30. Suppose she chooses to retire at age 60, she will have 30 years membership and will pass the 85 test. The 19 years worth of benefits she built up before April 2008 won t be reduced. Because of the date she was born, the 11 years worth of benefits she builds up from April 2008 will be reduced on a tapered basis. So her pension based on this later membership will be reduced by 18%. (The full reduction would have been 24%). Retiring early at your own choice 13

14 Early retirement reductions Here are the reductions which normally apply if you retire early at your own choice and you either: Aren t fully protected by the 85 test or You joined on or after 1 October YEARS EARLY PENSION REDUCTIONS Men Women LUMP SUM REDUCTIONS Men & Women 0 0% 0% 0% 1 6% 5% 3% 2 11% 11% 6% 3 16% 15% 8% 4 20% 20% 11% 5 25% 24% 14% 6 29% 27% 16% 7 32% 31% 19% 8 36% 34% 21% 9 39% 37% 23% 10 42% 40% 26% i Example Tony joined the Scheme in November 2006, so no matter how much or how little membership he has built up when he retires, he will face a reduction if he chooses to retire before 65. For example if he chooses to retire at 60, he is going 5 years early which means his pension will be reduced by 25% and his lump sum will be reduced by 14%. If you are facing benefit reductions under these rules, you can choose to leave but draw your benefits closer to 65, with a smaller reduction, or at 65 with no reduction. Employers can waive reductions on compassionate grounds, but this is rare. If your employer retires you for some other reason such as ill health or redundancy, there are no early retirement reductions. See following sections for more. 14 Retiring early at your own choice

15 Retiring early on ill health Remember, the reductions shown only apply if you retire early at your own choice. In other words they don t apply Retiring if early your employer on Ill retires health you early, on You can retire the on grounds ill health of ill health, at any redundancy, age, as long as... or efficiency. These are covered in the You have sections 3 months which membership, follow. and Your employer You can ends also avoid your employment or reduce the because you are permanently reductions incapable by leaving work of doing and delaying your own job, and drawing your benefits until a later date. You have a reduced likelihood of obtaining any gainful employment before 65. Your employer will then decide how capable of gainful employment you are, and will class you as a tier 1, tier 2, or tier 3 ill health case. In all cases, your ill health benefits will be based on the membership you have built up so far, and will be paid without any early retirement reduction. And if you fall into tiers 1 or 2, you will be i given some extra membership too. Your employer will consult a specially qualified doctor in assessing your case. Gainful employment means paid employment of at least 30 hours a week for at least 12 months. Being off sick before retiring on ill health will NOT affect the pay or membership for working out benefits. Retiring early on ill health 15

16 Tier 1 Tier 2 Tier 3 No prospect of carrying out gainful employment before 65 Benefits based on the membership you have built up so far, plus all the membership you would have built up by age 65. No prospect of carrying out gainful employment in the next 3 years, but good prospect of carrying out gainful employment before 65 Benefits based on the membership you have built up so far, plus 25% (a quarter) of the membership you would have built up by age 65. Good prospect of carrying out gainful employment in the next 3 years Benefits based on the membership you have built up so far, but with no extra membership. The lump sum is yours to keep, but the pension is a temporary payment and will stop whichever of the following happens first: l You start gainful employment l It is decided you are fit for gainful employment at an 18 month medical review l The three years period ends i l If you are part time when you leave, the extra membership will normally be adjusted to reflect your part time hours. But if you only went part time because of your illness, neither the part time membership you built up or the extra membership will be reduced. l If you retire on ill health under tiers 1 or 2 and were a member before 1 April 2008, and were 45 or over on this date, you will be given the extra membership from the old rules if better. But it is still the rules shown in this section which decide whether you are entitled to ill health benefits. 16 Retiring early on ill health

17 Retiring early through redundancy or efficiency As long as you are 55 or over and your employer makes you redundant or retires you in the interests of efficiency, Tier 3 we will pay your pension benefits immediately. If you retire in this way, there are no early retirement reductions. Sometimes employers offer redundancy/efficiency retirements as part of a voluntary early retirement scheme. Retiring early through redundancy or efficiency 17

18 Flexible retirement As long as you are 55 or over, your employer can allow you to reduce your hours or move to a lower grade and draw all or part of your pension benefits whilst carrying on working. But watch out, the benefits you draw may be reduced if you are under 65 (unless your employer waives the reduction). Even if you face a reduction, there may still be a cost to your employer, so you can only flexibly retire if your employer allows you to. By the way, if you flexibly retire, and stay in the Scheme, you will carry on building up pension benefits in your reduced job. Please remember, flexible retirement is only possible if your employer allows it - in other words it is an employer discretion. 18 Flexible retirement

19 Late retirement You can stay in the Scheme up to the day before your 75th birthday, if your employer will let you carry on working for them. Naturally your benefits will be bigger because they will be based on more years. And as an added bonus, your benefits will normally be enhanced by a percentage too. Please note: we have to pay your benefits at 75, even if you work beyond this. Late retirement 19

20 If you have paid extra contributions This section looks at your options if you have paid extra to top up your benefits 20 If you have paid extra contributions

21 Buying extra membership If you have paid extra to buy some extra membership, we will include this in the membership we use to work out your benefits. So it will count towards: l Your own inflation proof pension worked out like this: Pay x membership 80 l Your lump sum* l Inflation proof pensions for your husband/wife/civil partner/ nominated cohabiting partner and any dependent children l How soon you pass the 85 test (if it applies to you) * If you were 45 or over on joining, and elected to buy extra membership before 6 April 2006, the extra membership will buy you a pension worked out like this: If you haven t finished paying: If you retire because of ill health, we will treat you as if you have finished paying, so the membership will count in full. If you retire in the interests of efficiency, or you are made redundant, you may be able to pay off what s left in one go. If you retire for any other reason you cannot pay it off and your benefits will simply take into account what you have paid for. Pay x membership 60 This gives more pension than the normal 80ths calculation, but won t get you any extra lump. If you have paid extra contributions 21

22 Buying extra pension If you were buying some extra pension, and have finished the payments, we will add this to the normal pension you have built up with us. Part time buy back If you have bought back any part time service, we will include this in the membership we use to work out your benefits. So it will count towards: l Your own lump sum & pension worked out as follows: Pension = Pay x membership 80 Automatic lump sum = Pension x 3 plus l How soon you pass the 85 test (if it applies to you) l Inflation proof pensions for your husband/wife/ civil partner/nominated cohabiting partner and any dependent children If you haven t finished paying: If you retire because of ill health we will treat you as if you have finished paying, so you will get the extra pension in full. But if you retire for any other reason, you will get the proportion of the extra pension you have paid for so far, less a reduction if retiring before 65. Sorry, you cannot pay off what s left. If you haven t finished paying: If you retire because of ill health, we will treat you as if you have finished paying, so the membership will count in full. If you retire for any other reason you can pay off what s left from your lump sum. If you don t pay it off, your benefits will simply take into account what you have paid. 22 If you have paid extra contributions

23 Men avoiding membership reduction If you haven t finished paying: Any membership you have before April 1972 which you have agreed to pay for by extra contributions will count in full as long as you have finished paying. Employment Tribunal part time backdating If you retire because of ill health we will treat you as if you have finished paying, so the membership will count in full. But if you retire for any other reason you cannot pay off what s left, and any membership you haven t paid for will be reduced by 11%. If you haven t finished paying: If you chose to backdate in this way, you will have been given the option to pay up front, or to pay by installments. Buying partner s pre 88 membership If you have a nominated cohabiting partner and were paying to count your membership before 6 April 1988, this will count in full towards a pension for them as long as you have finished paying. If you were paying by installments and haven t finished paying, you will have to pay off what s left, and the membership will count in full. We will automatically take the amount you owe from your retirement lump sum. If you haven t finished paying: If you retire because of ill health we will treat you as if you have finished paying, so the membership will count in full. But if you retire for any other reason, the proportion of the membership you have paid for so far will count towards your partner s pension, and you cannot pay off what s left. Please see Pensions for Dependants section for more. If you have paid extra contributions 23

24 AVCs If you have paid into our Scheme AVC with Prudential, there are various ways of drawing the benefits... Buying an annuity from an insurance company: This is where an insurance company takes the value of the AVC and pays you a pension in return. This pension is completely separate from your main scheme benefits, and you have some choice over the type of pension, for example whether you want any kind of annual increase, and whether you want dependants benefits. You can buy this type of annuity from Prudential, or another insurance company of your choice. Prudential will automatically provide you with a quote with various options, but this will stand for a limited time only. Remember annuity rates do vary, and can literally change each day. Buying an annuity from Greater Manchester Pension Fund: This is open to you as long as you retire and draw your benefits straightaway. It differs from other annuities in that it provides a pension which automatically includes inflation proofing and dependants benefits. We will automatically provide you with a quote for this. Unlike other annuities, the rates change less often. Turning your AVC into membership in the Fund: This is only open to you if you signed up for your Prudential AVCs before 13 November You can only choose this option anytime from age 50, and before you retire, unless you retire through ill health, in which case you can choose it no matter what your age. If you turn your AVC into membership, it will not count towards your lump sum, but will count towards: l Your own pension, worked out as follows: Pension = Pay x membership 80 l Pensions for your husband/wife/civil partner/ nominated cohabiting partner and any dependent children l The age you pass the 85 test (if this applies to you) Please note: if you have already turned your AVC into membership then retire early at your own choice, this may reduce the amount of membership it bought you. Please note - this information does not cover freestanding AVCs. 24 If you have paid Subject extra contributions

25 Drawing some or all of your AVC as a tax free lump sum: This option is open to you if you have paid AVCs, but once again there are HMRC limits. These limits take account of both the value of your AVCs and your main benefits, as illustrated below... Let s look at Loretta again... Example Suppose she chooses to take her standard benefits package, which we know gives her a pension of 9,000 and a lump sum of 21,000. Let s say she also has an in house AVC with Prudential worth 39,000, then the HMRC will value her total pensions pot at 240,000 - see the box on the right for how this is worked out. HMRC limits allow Loretta to take up to 25% of her total pension pot as tax free cash, in other words 60,000. If she takes all of her AVC as cash, along with her Fund lump sum, this comes to exactly the 25% she is allowed. How to value your pensions pot Simply take your yearly pension and multiply it by 20, then add in your lump sum and AVCs. So Loretta s pot is: 9,000 x 20 = Plus lump sum: Plus AVCs: Total: 180,000 21,000 39, ,000 If you have paid Subject extra contributions 25

26 Sorting out the paperwork Before we can begin working out and paying your benefits, we need some information from you, as this section explains... Once your employer finds out you are retiring, they will let us know by sending us a form, and this will trigger various processes. First we will write to you, explaining your benefits and the options open to you. The letter will give you information about: Your lump sum and pension: this is the standard package of benefits Bigger lump sum options: we will tell you the maximum lump sum open to you by giving up some pension - you can choose the standard package, or the maximum lump sum package, or anywhere in between AVC options: If you have paid AVCs, we will tell you: u the value of the scheme annuity available from us (an extra pension) u how much of your AVCs you can draw as tax free cash (an extra lump sum) Please note: Prudential will write to you separately about annuity options with them. 26 Sorting out Subject the paperwork

27 Please watch out for this form! When we write to you, we will also send you a retirement form (PF71m) to fill in - please help us by doing this as soon as possible. The retirement form asks for various details including: Bank details: This is the account we will pay your pension & lump sum into HM Revenue & Customs (HMRC) rules: There are strict rules about drawing pension benefits, so we need to ask you about: u the value of other pensions u whether you have ever had a serious ill health lump sum or had a transfer out to an overseas pension scheme u whether you plan to recycle the lump sum from us Part time buy back: If you were paying part time buy back scheme contributions, but haven't finished all the payments, you can either pay what's left or simply get what you ve paid for so far. Bigger lump sum option: This is where you tell us how big a lump sum you want, and how you want to draw any AVCs you have paid Please send us your completed retirement form & Birth Certificate as soon as possible, as we cannot pay your benefits without them! Sorting out Subject the paperwork 27

28 Income tax in retirement No matter how old you are or how long you have paid tax for, if your income is high enough, you will still have to pay tax when you retire. Income can include... one used whilst you were working. One reason for this l State pension and other pensions is that the code is adjusted to take into account the amount of State pension you draw. l Unemployment benefit l Wages from other jobs l Interest on some savings This is the way the tax office tell us to deal with your pension when you first retire... Under State pension age: If you won t have reached State pension age by 5 April, we will use the same tax code you had at work and as soon as we receive your P45 (see below), we will use the pay and tax figures on that too. From State pension age: If you will have reached State pension age by 5 April, we will use a different tax code to the one you had at work. We will use tax code BR, which means every pound of your pension will be taxed. This is to try to stop you paying too little tax, because it is likely that the code eventually issued by the tax office will probably be much lower than the 28 Income tax in retirement The tax office may take some time to sort out what tax you should pay but as soon as they do, they will write and tell you. They will also send the same details to us, so if you have paid too much or too little tax, we can normally put this right through your pension. But if it isn t sorted out by the end of the tax year, you will have to deal with the taxman directly (HMRC to give them their the proper name). Your P45 When you stop work for your employer, they will have to fill in your pay and tax details on a form called a P45, and send it to us. As soon as we get it, we will send it on to the tax office, so you will not have a copy personally to show to any other organisations who might want to see it, for example the DWP Benefits Agency.

29 Your pension & the cost of living We normally increase our pensions in April in line with prices. The increase is the same as the increase in the Consumer Prices Index in the year up to the previous September. This is laid down in law, and is the only way we can pay an increase in your pension. You will normally get your first pensions increase the April after you retire. Remember, the closer you retire to April, the smaller your first increase will be, since your benefits have already been based on a more up to date pay. In fact there is a cut off point in March, and if you retire after it, you will have to wait until the following April for your first increase. If you were a member of the Scheme before 6 April 1997: From State pension age, the DWP will normally share the If you were a member before 6 April 1997, the DWP normally pay part of the increase on your pension from us. cost of paying any pensions increase on your pension from us, up to the value of your Guaranteed Minimum Pension. In other words we will pay part of the increase with your pension from us, and the DWP will pay the other part with your State pension. i If there is no increase in the Consumer Prices Index, your pension will stay at the same level. Your pension Subject & the cost of living 29

30 Lump sum life cover It s important to think about how your loved ones will cope financially when you die. In some cases we will pay out a lump sum, and if you leave a husband, wife, civil partner, nominated cohabiting partner and any dependent children, pensions for them too. Lump sum life cover If you die before you have drawn your pension for 10 years, we will normally pay what s left as a lump sum. In most cases, the lump sum is free from inheritance tax. We will decide who to pay it to, but we will always take your wishes into account - you may have already filled in a lump sum nomination form to let us know who you would like us to pay. If you haven t filled one in, and would like a copy, please call our helpline on Lump sum Subject life cover

31 Pensions for your dependants If you leave dependants when you die, we will pay them a pension, as shown in this section. The classes of dependant are... Husband or wife: - in other words you are legally married. i plus No need to take any action now, but if you die, we will need to see your marriage certificate. Civil partner - in other words you have registered a civil partnership. No need to take any action now, but if you die, we will need to see your civil partnership certificate. Your dependent children - this normally means children under the age of 18, or under 23 if in continuing education. i or i No need to take any action now, but we can only pay pensions to children for as long as we class them as dependent. or Nominated cohabiting partner - in other words a long term partner you have told us about. i For a cohabiting partner to be entitled to a pension, you must fill in a Pensions for Cohabiting Partners Nomination Form. For full terms & conditions please see the form. Pensions for your dependants 31

32 We will pay your dependants a pension based on the pay and membership you retired with. Here s how we work them out: i Pension for husband, wife, civil partner or nominated cohabiting partner Pay x Membership 160 All members with membership before 6 April 1988: this won t count towards a pension for your nominated cohabiting partner unless you pay extra. Women who marry after retiring: your husband s pension is only based on your membership from 6 April 1988, (this includes transferred in contracted out membership, but normally excludes any extra years you may have been given) Men who marry after retiring: your wife s pension is only based on your contracted out membership from 6 April Pension for one child, where we also pay a pension to your husband/wife/civil partner or nominated cohabiting partner Pay Membership 320 x Pension for one child, where there is no pension for your husband/wife/ civil partner or nominated cohabiting partner Pay Membership 240 x Pension for 2 or more children, where we also pay a pension to your husband/wife/civil partner or nominated cohabiting partner Pay Membership 160 x Pension for 2 or more children, where there is no pension for your husband/wife/civil partner or nominated cohabiting partner Pay Membership 120 x 32 Pensions for Subject your dependants

33 Keeping in touch There are various ways we will try to keep in touch with you during retirement, and there are times we need you to keep in touch with us too! Payslips We will send you a payslip in time for your first payment. After that we will only send you a payslip if your payment changes by more than 25p. This normally means you will get a payslip once or twice a year, usually in April and May. The tax year for our pension payments begins with payments for May and ends with payments for April - this is because the payment for April is made before the start of the new tax year. As April is the last month in the tax year, your payslip will also include your P60 details - a summary of your pay and tax details for the tax year. Please do not throw this away. Pensioners newsletter We produce a special newsletter for everyone drawing a pension from us. It s called Pensions Grapevine, and we will send you a copy every year with your April payslip. Pensioners forum This special one day event has talks by various specialists, information stands staffed by experts from organisations like the DWP, and gives you the chance to meet up with old pals. Watch out for Grapevine for details of the next one. Keep in touch with us too! Please let us know straightaway about any of these changes... If you change address: You can let us know by phone If you change your bank or building society account: you must let us know in writing or by calling at our offices Please let us have any address or bank changes by the middle of the month, so we can carry them out for the month after If you accept another job: if the job is with any employer who takes part in the Local Government Pension Scheme, you must by law let us know about this in writing. Keeping Subject in touch 33

34 How to complain If you are at all unhappy, first of all talk the problem through with us or your employer - whoever you think is at fault. Many problems are caused by simple misunderstandings, and can be put right quickly and easily this way. But if you feel that you want to take matters further, we have a two stage internal dispute system, as shown on the right. And at any stage of the internal dispute system, you can also turn to an outside organisation called TPAS for free confidential help. (See next section). Making your complaint Please ring our helpline on and ask for our booklet called How to Complain. This gives further details of the dispute system, and includes a form to help you explain your complaint clearly. Stage 1 - formal complaint Your first step is to put your complaint in writing to whoever you think is at fault - either your employer or this Fund. Please make sure you do this within six months of the problem taking place, as your complaint can only be looked at later than this in special cases. Complaints against this Fund... Stage 1 Pensions Referee Level 3 Executive Suite Council Offices Wellington Road Ashton-under-Lyne Tameside, OL6 6DL Stage 2 - further appeal If you are unhappy with the stage 1 decision you have six months to appeal to one of two stage 2 referees, who have been appointed by this Fund. You can also do this if you have gone through stage 1 but haven t had a reply within three months. Complaints against your employer... Please write to your employer s Pensions Officer. Stage 2 Pensions Referee Level 3 Executive Suite Council Offices Wellington Road Ashton-under-Lyne Tameside, OL6 6DL 34 How Subject to complain

35 Outside organisations The Pensions Advisory Service (TPAS) helps members and beneficiaries with pensions queries, or if they are dissatisfied with the complaints procedure. TPAS cannot force schemes to take action and may refer cases to the Pensions Ombudsman instead. You can contact TPAS through your Citizens Advice Bureau, or at: 11 Belgrave Road, London, SW1V 1RB The Pensions Ombudsman can investigate and determine any complaint or dispute of fact or law in relation to an occupational pension scheme. Pension schemes and members must normally go along with the Ombudsman s decision unless it is overturned by a court. 11 Belgrave Road, London, SW1V 1RB Independent advisers are not tied to selling the products of just one company, but will still charge a fee or earn commission on the products they sell. Call freephone for details of advisers in your area. The Pension Tracing Service holds the details of all pension schemes, which have to register their details with them. Greater Manchester Pension Fund has done this. If you were in another scheme in the past and you have lost touch with them, the Tracing Service should be able to help: Tyneview Park, Whitley Road, Newcastle-upon-Tyne, NE98 1BA The Pensions Regulator is a watchdog which makes sure schemes are run properly, and protects members against fraud. Anyone who is worried about a scheme can report them to The Pensions Regulator. Napier House, Trafalgar Place, Brighton, BN1 4DW State pensions: please contact your local Department for Work & Pensions Office Outside organisations 35

36 Can we help? Here are the ways you can find out more or get in touch with us. If you do contact us, please quote your National Insurance number. Please let us know your new address if you move house. Visit our website to find out more or to contact us by Or call our friendly helpline on: Or call in at our offices: GMPF, Concord Suite, Manchester Rd, Droylsden, M43 6SF. Produced by Tameside MBC, Administering Authority for Greater Manchester Pension Fund. It may be possible to produce this booklet in other formats - please contact us for more information. Version 16, January 2013