A guide to deferred benefits

Transcription

1 A guide to deferred benefits

2 2 A guide to deferred benefits If you need more information about anything in this booklet, phone us on After reading this guide, fill in the form opposite to claim your pension. The information in this booklet gives general guidance only and should not be treated as a statement of the law. Bradford Council runs West Yorkshire Pension Fund

3 Contents 3 Introduction... What you can expect from us... Claiming your pension... Balancing your benefits... Your questions answered How to contact us... 20

4 4 Introduction This guide is about West Yorkshire Pension Fund (WYPF). It tells you: 4 what you can expect from us when you retire; 4 how to claim your pension; 4 how to contact us when you need help or information; and 4 the answers to the questions you'll want to ask about your pension. Important When you want to claim your pension, fill in the form in the front of this booklet. Tear it off and send it to us in the envelope provided. You don t need a stamp. See page 9 for full details. Please don t delay we can t pay your pension until we get your claim form. Please read this guide carefully especially page 6 What you can expect from us and page 9 Claiming your pension before you fill in the claim form. You might find information in this guide useful in the future, so it is worth keeping it after you retire.

5 5 Protecting your money The information you give us is protected under the Data Protection Act We will use the information you give us to work out your pension benefits. We will also need to give the information to our advisers and anyone else we choose to help us run the pension scheme. At any time, you can ask for a copy of the information we hold about you. You can also ask us to correct any information that's wrong. Preventing fraud If you are claiming any other benefits (for example, Housing Benefit), don t forget to say that you are getting a pension from West Yorkshire Pension Fund. If you don t, you may find yourself owing money. We re part of the National Fraud Initiative. This means that we will use the information we hold for pension purposes to prevent and detect fraud, and we will share information with other organisations for this reason.

6 6 What you can expect from us When you retire Your benefits paid straight away When you claim your pension, if we have all the information we need from you, we'll do what we can to make sure your first payment reaches your account within 14 days. If we don't have all the information we need, we'll make sure we pay your benefits as soon as we can. If we don't have all the information we need, we can't pay your pension until we have it. The first payment will be your tax-free lump sum (known as the retirement grant) and your pension up to the end of the month in which it is being paid. We will pay it direct to your bank, building society or giro account. We will work your benefits out in line with the rules of the scheme, so you will always get the full amount you are entitled to.

7 7 Once you ve retired A pension each month We ll pay your pension on the 16th of every month (or earlier if the 16th is a Saturday, Sunday or bank holiday). So each payment will cover about the last two weeks and the next two weeks. We will make each payment direct to your bank, building society or giro account. When you fill in the claim form, remember to tell us which account you want us to pay your pension into. This is very important. Pension slip We ll send you a pension slip whenever your pension payment is 25p more or less than usual. If your pension stays the same, your money will still be paid into your account, but you won t get a slip. If you re entitled to an increase each year, we will send you pension slips in April and May. If the Chancellor s Budget affects how much tax you pay, we ll send you one in June and July too. The pension slip tells you how much we will pay into your bank account and how much tax (if any) has been taken. It also lists any other deductions. Pensioners' newsletter We'll send you a copy of our newsletter, For Your Benefit, which is published twice a year. It will bring you up to date with information about us and your pension. We'll also tell you if you qualify for an increase each year and how much it will be.

8 8 Customer service We d like to make our service to you as good as possible. You can help us by filling in our customer survey form which we ll send to you just after you retire. We ll look carefully at all your comments. Help and information Our friendly staff will give you the help and information you need to understand the Local Government Pension Scheme and what you are entitled to. See page 20 for full details of how to contact us. P60 In May you will receive a P60 form showing the total pension you received, and the tax you paid, in the previous year. Information in other formats and languages All our information, including this guide, is available in Braille, in large print, on audio tape and in other languages. Life certificates From time to time we need to check that you are still receiving the pension you are entitled to. We do this by sending you a form called a Life Certificate for you to sign. Advertising We advertise a range of products and services from different companies. If you do not want to get information from us about these, we will be happy to arrange that for you. All you have to do is tick the relevant box on the claim form.

9 9 Claiming your pension To claim your pension, fill in the claim form in the front of this booklet. When you want to claim your pension, fill in the form in the front of this booklet. Tear it off and send it to us in the envelope provided. You don t need a stamp. Remember: 4 we can t pay your pension until we get your claim form; and 4 it's very important that you fill in your bank and building society details. If you are not sure about any of the details, please ask your bank or building society to help you.

10 10 Balancing your benefits Giving up part of your pension for a bigger lump sum As long as you keep within limits set by HM Revenue & Customs you can give up part of your pension to get a bigger lump sum. Have a look at the statement that came with this booklet. It shows the maximum amount of pension you can give up, and how much extra lump sum you will get. Your wife s, husband s or civil partner s pension may be affected if you choose to give up part of your pension. (A civil partner is someone you have entered into a formal arrangement known as a civil partnership with so you have the same legal status as a married couple.)

11 11 Your questions answered Will I pay tax on my pension? Your lump sum is completely tax-free. However, you will almost certainly have to pay tax on your monthly pension. Your pension will be taxed at the basic rate until your local tax office tell us the correct rate to use. Your tax office might need to write to you about your income details before deciding the correct rate. We can t refund tax or make any other adjustments until your tax office confirms the rate we should use. So if you are expecting a refund it may take a little while. If you want to know more about the tax you will pay, we won t be able to help. Please get in touch with your tax office. The tax office that will deal with your tax affairs is: HM Revenue & Customs West Yorkshire and Craven District Centenary Court 1 St Blaise Way Bradford BD1 4YL. Phone: Your tax reference is 072/W6. Please quote it whenever you contact the tax office. Leaflets are available from your local tax office or you can get them from the HM Revenue & Customs website (

12 12 Will my pension increase? Your pension will keep pace with the cost of living if: 4 you are over 55 when you retire; or 4 you retire because of ill health. If you retire before the age of 55, your pension won t increase until your 55th birthday (unless you later become permanently unfit to do any work). When you become 55, we will bring your pension up to the level it would be if you had received all the increases from the date you retired. Could my pension go down? If you left the Local Government Pension Scheme before 1 April 1998, when you get to state retirement age, your pension may go down by a small amount (no more than 1.70 for each year of membership between 1948 and 1980). If this applies to you, the reduction will be shown on the benefits statement that came with this booklet. But remember that if you are retiring before state retirement age, the amount of the reduction will increase at the same rate as your pension each year, so the actual reduction at state retirement age will be higher.

13 13 How are the increases worked out? The increases are the same as those given to people getting the State Pension, and they are set by the Government each April. Every March we ll send you a newsletter with full details of the increases. If any of your pension is based on membership of the Local Government Pension Scheme after 1978, when you become entitled to a State Pension part of your WYPF pension may be known as a contracted out deduction (COD). This used to be called the guaranteed minimum pension (GMP). The state pays any increase to this part of your pension along with your state pension. Don t worry, you still get the full increases you are entitled to. What if I paid additional voluntary contributions? If you have paid additional voluntary contributions (AVCs), you'll be entitled to your benefits from these at the same time as you receive your benefits from the Local Government Pension Scheme. We will send you a separate letter about this once we have received details from your AVC provider.

14 14 What will my dependants get when I die? When you die, your husband, wife, civil partner or next of kin must tell us immediately. Spouse s pension After your death, your husband, wife or civil partner would receive a pension paid at the same rate as your own for the first three months, then a pension at half that rate. But in some cases the spouse s pension may not be half your pension (for example, if you married after you retired or left the scheme). Your spouse s pension will be paid for life and will increase each April in line with the rate of inflation. Children s pension After your death, a pension would be paid to any of your dependent children who were born within 12 months of you stopping your contributions to the Local Government Pension Scheme. Dependent children are those who: are under the age of 17; are over 17 but under 23 and are in full-time education or training and have been since before they were 17; or are over 17 and have been physically or mentally incapacitated since before they were 17. Children s pensions will increase each April in line with the rate of inflation. Death grants If you left the scheme after 1 April 1998 and you die within five years of retiring, your dependants or the person previously chosen by you (see below) will get a lump sum, known as a death grant, equal to five years pension less any pension you have already received. Choosing who receives the death grant You can choose who should receive any death grant by filling in a death grant nomination form. If you have not filled in a death grant nomination form and would like to do so, please contact us (see page 20). If you nominate someone we can pay any money due quickly, and inheritance tax will not be due on the death grant.

15 15 Can I claim other benefits? Now that you are getting a WYPF pension there might be state benefits you can claim. You should contact the Department for Work and Pensions if you think you might be entitled to other benefits. The office which would deal with your claim depends on where you live. The phone number and address is shown in your local phone book under Jobcentre Plus. Leaflets are available on-line at or from your local Department for Work and Pensions office. If you are thinking about claiming a state benefit, the sooner you act the better. In most cases benefits can be paid only from the date of your claim and are rarely backdated. What about my State Pension? If you are retiring before you are entitled to a State Pension and you are no longer paying National Insurance contributions, your State Pension could be affected. If you think your National Insurance record might not be up to date, you can ask for a forecast of the State Pension you will be entitled to. Just ask your local Department of Social Security (Benefits Agency) office for a Pension Forecast form.

16 16 What if I decide to live abroad? We can pay pensions all over the world. If you are thinking of moving abroad, contact us in good time so we can discuss the options with you and make all the necessary arrangements. What if I change my address or my bank details? Please let us know if you move house or want us to pay your pension into a different account. If you are just moving house, you can phone If you change your bank, please give us the new details in writing. Please try to let us know at least three weeks before you are due to get your next pension payment.

17 17 Can I keep on paying contributions to my health-care scheme through my pension? If you are paying into a health-care scheme we can take your contributions from your pension. Just fill in section 9 of the claim form if you want us to do this. How do I claim under the scheme? Ask the health-care scheme for a claim form and return it to them once you have filled it in. Tell them you have a West Yorkshire Pension Fund pension and give them your pension number and pay group which you ll find on your pension slips. Can I continue to pay under the Give As You Earn Scheme? Yes, you can continue any donations to charities under the Give As You Earn scheme. If you want to continue, you need to fill in a Charity Choice Amendment Form which you can get from your employer's Pension Officer.

18 18 What if I have a complaint? We want to help We do all we can to make sure your benefits are worked out correctly in line with the rules of the Local Government Pension Scheme. But if you have a complaint or disagree with a decision about your pension, write to or phone us first and we'll do our best to sort out the problem. If we can t settle the dispute informally, there is a two-stage procedure called the Internal Dispute Resolution Procedure to help sort out the problem. The Internal Dispute Resolution Procedure Stage 1 If your complaint is about a decision made by your employer, you should contact them directly, or contact us and we will send your complaint to your employer. If your complaint is about us, write to: West Yorkshire Pension Fund PO Box 67 Bradford BD1 1UP. You should normally make your complaint in writing within six months of the disputed decision being made. We will appoint a person to deal with the dispute. That person has two months to look at all the facts of the dispute and come to a decision. If your case is complicated and we need more time, we will tell you this within two months of receiving your letter. We will also let you know when you can expect our decision.

19 19 Stage 2 If you disagree with the decision we made at stage 1, you have six months to tell us this. We will then send you Bradford Metropolitan District Council s address so you can send your complaint to them. Bradford Metropolitan District Council has two months to look at the facts and reach a decision. If you are not happy with the decision made at stage 2 you can ask the Pensions Ombudsman to look at your case. You can contact the ombudsman at: 11 Belgrave Road London SW1V 1RB. Phone: Fax: enquiries@pensions-ombudsman.org.uk You can ask The Pensions Advisory Service (TPAS) to help you at any time. You can contact The Pensions Advisory Service at: 11 Belgrave Road London SW1V 1RB. Website: Phone: If you would like to know more about the Internal Dispute Resolution Procedure, please phone us on or see page 20 for details of other ways to contact us.

20 20 How to contact us If you have any questions or problems at any time in the future, our staff will be happy to help. Phone: Fax: Textphone: Write to: WYPF PO Box 67 Bradford BD1 1UP We ll be very happy to see you if you call into our ground-floor office at: Argus Chambers Britannia House Hall Ings Bradford. We have an induction loop to help people who use a hearing aid. Our office is open between the following hours (except bank holidays and other public holidays). 8.45am to 4.30pm, Monday to Friday Our website has information you might find useful and is updated regularly. The address is:

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22 22 Our standards of service To help us give you a quick, efficient and polite service, we set minimum standards for important areas of our business. 4 4 We will pay 85% of retirement benefits within three working days of members retiring or us receiving all necessary information. We will pay all pensions on the 16th of each month, or earlier if the 16th happens to be a Saturday, Sunday or bank holiday. 4 We aim to answer all phone calls within 20 seconds or seven rings. 4 4 We will respond to all letters within three working days and give a full response within 10 working days. We will process all changes to addresses, tax codes and bank details for the next payment if we get the details at least three weeks before your next pension payment is due. What you say matters Your views are important to us and tell us how we can give you an even better service. The results from our customer surveys show that you are extremely satisfied with the way we do things. 4 87% thought the guide to deferred benefits was easy to understand. 4 94% felt their benefits were paid quickly. 4 98% of people who phoned us found our staff helpful. Enjoy your retirement!

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24 A guide to deferred benefits PO Box 67 Bradford BD1 1UP Phone: Fax: Textphone: Website: Corporate member of Plain English Campaign. Committed to Clearer Communication. This booklet is only a guide. It is not an interpretation of the scheme regulations. The scheme regulations will be used to reach a decision in any dispute or disagreement A guide to deferred benefits - March 2007