Issue 3. Spring/Summer 09 Newsletter - Essex Pension Fund€¦ · Pensions and Retirement Income for our Members to Enjoy Issue 3. Spring/Summer 09 Newsletter for all our employees

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Web: www.essex.gov.uk/pensionservicesEmail: [email protected] Phone: 01245 431912

Welcome to the 2009 spring/summer edition of prime

Pensions and Retirement Income for our Members to Enjoy

Issue 3. Spring/Summer 09

Newsletterfor all our employees

If you require a form please contact your employer or contact pensions services and we will put one in the post for you.

The LGPS is one of the safest pension schemes in the country. Your pension benefits are not based on contribution amount or investment returns but are calculated on your final pay and total membership. So even in the current financial climate you can be assured that your local government pension, which is protected under law, is safe.

It is now more than a year since the introduction of the new LGPS. Two of the changes brought into the new scheme, dependent pensions for nominated cohabiting partners and tiered member contribution rates, are featured here.

Our Contact Details

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Scheme Member ContributionsThe contributions you pay into the scheme are based upon your whole-time equivalent earnings and your basic contribution will be between 5.5% and 7.5% of your pensionable pay.

Remember the contributions are deducted before income tax, giving you tax relief and as a member of the scheme you also pay a reduced rate of National Insurance.

If you commence a new pensionable employment on or after 1 April 2009 your contribution rate will be assessed by your employer using the following table

The above table will also be used by your employer if they re-assess your band on or after 1 April 2009. If your employer changes your contribution rate they must notify you of the change.

Note: Your employer determines which pay band applies to you. If you feel you are paying the incorrect level of contributions you should contact your employer. Please do not contact Pensions Services as we are not involved in determining your contribution rate.

Transferring Previous Pension RightsAll scheme members have the right to request a transfer of previous pension rights into the LGPS. A request to transfer-in should be made within 12 months of joining the LGPS with your current employer; however your employer does have the discretion to extend this period. Therefore, if you make a request more than 12 months after joining it will be forwarded to your employer for them to decide whether or not to exercise their discretion to allow the transfer to be investigated.

In certain circumstances the County Council, as the Administering Authority, may exercise its discretion not to accept a transfer value from a non-public sector pension arrangement.

Essex Pension Fund BoardThe newly established Essex Pension Fund Board was due to hold its third meeting on 24th June having previously met on 26th November 2008 and 1st April 2009.

The Board, which monitors the work of the Investment Steering Committee and Pensions Services, has been established to ensure that the County Council, as Administering Authority, continues to comply with best practice principles for governance of the pension fund.

On the Road AgainAs part of our new communications strategy we will be available to attend various employee functions. These could be induction days, “market stall “events, training courses or retirement courses.

Your employer should publicise any events which they have asked us to attend.

The quick answer is NO unless you have paid into the LGPS since 1 April 2008, meet certain eligibility conditions AND you have also completed a special ‘Survivor’s Pension – Nomination of Cohabiting Partner’ form.

If you live with a partner that you are not either married to, or in a civil partnership* with, you should be aware that we are not permitted to pay an LGPS Survivor’s Pension to your partner if you die, unless you have made a valid nomination for them to receive it.

However, to be able to make a nomination, all of the following conditions must have applied to both you and your nominated co-habiting partner for a continuous period of at least 2 years on the date you both sign the nomination form:

• both you and your nominated co-habiting partner are, and have been, free to marry each other or enter into a civil partnership with each other, and

• you and your nominated co-habiting partner have been living together as if you were husband and wife, or civil partners, and

• neither you or your nominated co-habiting partner have been living with someone else as if you/they were husband and wife or civil partners, and

• either your nominated co-habiting partner is financially dependent on you or you are financially interdependent on each other.

Will your unmarried partner receive a Survivor’s Pension if you die?

So, if you are cohabiting with a partner that you are not either married to, or in a civil partnership* with, and you would like us to pay a Survivor’s Pension to them if you die, then you must complete and you and your partner must both sign a ‘Survivor’s Pension - Nomination of Cohabiting Partner’ form.

If you do not have a copy of the form you can get it from your Human Resources department, or you can simply download a copy from our website at www.essexcc.gov.uk/pensions.

*A civil partnership is a relationship between two people of the same sex which is formed when they legally register as civil partners of each other.

A nomination is not valid if all of the above conditions have not been met for a continuous period of at least 2 years on the date you sign the form.

On your death, a survivor’s pension would be paid to your nominated co-habiting partner if:

• the nomination has effect at the date of your death, and

• your nominated cohabiting partner satisfies us that the above conditions had also been met for a continuous period of at least 2 years immediately prior to your death.

£0 – £12,600 5.5%

£12,601 – £14,700 5.8%

£14,701 – £18,900 5.9%

£18,901 – £31,500 6.5%

£31,501 – £42,000 6.8%

£42,001 – £78,700 7.2%

More than £78,700 7.5%

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WebsiteWe realise we have not kept our website up to date since the introduction of the new scheme on 1 April last year. However, we are currently reviewing all our IT communications and expect to have a new and improved website for you by the end of the year.

Remember, though, the current site is still relevant for LGPS membership to 31 March 2008 and full details, including the new scheme can be found on the national LGPS website at www.lgps.org.uk.

Our Contact details:

Phone: 01245 431912

Web: www.essexcc.gov.uk/pensionsservices

Email: [email protected]

Business Continuity Plan (BCP)You will, no doubt, be aware of the publicity surrounding the Swine flu outbreak and pandemics. Pensions Services has specific plans in place for such scenarios and you can be reassured we should be able to continue to administer the LGPS in some capacity irrespective of the situation.

We have moved!Please note Pensions Services is no longer part of Human Resources at Essex County Council. In November 2008 we became part of the newly formed Essex Shared Services, however we are still based at County Hall in Chelmsford and our address, phone numbers and e-mail remain unchanged.

Winter IssueIn the winter issue of Prime we will provide you with an overview of our communications strategy including a progress report on the website development.

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News in brief

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HM Revenue and CustomsOn the 6 April 2006 HM Revenue and Customs (HMRC) introduced a new tax regime, often referred to as Tax Simplification, which made some changes that affect pensions.

• A Lifetime Allowance (LTA) on the size of the total pension rights a person is permitted. The LTA for the 2009/10 tax year is £1.75 million.

• An annual allowance restricting the amount by which a persons pension rights can increase in a single year. The annual allowance for the 2009/10 tax year is £245,000.

Anyone whose pension rights exceed these amounts will be liable for increased tax liability on the balance over the HMRC maximums. Please note it is your responsibility to notify HMRC if you exceed the annual allowance.