Your Pension a Simple Guide

your pension-a simple guide

APRIL 2013

Pension Guidecover2013.indd 1 17/04/2013 16:52

welcomeWe have produced this guide to introduce you to your employer’s official pension scheme - Greater Manchester Pension Fund, or GMPF for short.

We look at the benefits you can look forward to as a member, how soon you can draw them, and we also look at the cover you have in case the unexpected happens.

GMPF is part of a nationwide scheme called the Local Government Pension Scheme, and this guide is based on our understanding of the scheme rules, at the time of going to press.

Especially if you’ve never been in a pension before, there is quite a lot to take in, so if you need to know more, you are welcome to call into our offices, or ring our helpline - all the details are shown on the back page.

The information in this booklet is based on the Local Government Pension Scheme (Benefits, Membership and Contributions) Regulations 2007 and the Local Government Pension Scheme (Administration) Regulations 2008 (both effective from 1st April 2008) and other relevant legislation.

Please seepage 8

for details of important paperwork

YourPensionGuideMarch2012.indd 2-3 30/03/2012 10:59

welcomeWe have produced this guide to introduce you to your employer’s official pension scheme - Greater Manchester Pension Fund, or GMPF for short.

We look at the benefits you can look forward to as a member, how soon you can draw them, and we also look at the cover you have in case the unexpected happens.

GMPF is part of a nationwide scheme called the Local Government Pension Scheme, and this guide is based on our understanding of the scheme rules, at the time of going to press.

Especially if you’ve never been in a pension before, there is quite a lot to take in, so if you need to know more, you are welcome to call into our offices, or ring our helpline - all the details are shown on the back page.

The information in this booklet is based on the Local Government Pension Scheme (Benefits, Membership and Contributions) Regulations 2007 and the Local Government Pension Scheme (Administration) Regulations 2008 (both effective from 1st April 2008) and other relevant legislation.

Please seepage 8

for details of important paperwork


contentsPension choices 6How to join 8The cost to you 10Benefits & what they are based on 12Benefits & how to work them out 14Benefits & when you can draw them 16Lump sum life cover 22Pensions for dependants 24Leavers’ choices 28Topping up benefits 30Your pension & the cost of living 32When a marriage/civil partnership breaks down 33Behind the scenes 34Keeping you informed 37How to complain 38Outside organisations 39


contentsPension choices 6How to join 8The cost to you 10Benefits & what they are based on 12Benefits & how to work them out 14Benefits & when you can draw them 16Lump sum life cover 22Pensions for dependants 24Leavers’ choices 28Topping up benefits 30Your pension & the cost of living 32When a marriage/civil partnership breaks down 33Behind the scenes 34Keeping you informed 37How to complain 38Outside organisations 39


Here’s a thought 7

Here’s a thoughtDid you know that as working people, most of us

have to pay into some kind of pension scheme

on top of the Basic State Pension? So this means

having to choose one of the following...

l Paying more into the

state pensionl Joining your staff pension scheme -

gmpfl Arranging your own

personal pensionor stakeholder pension

6 Here’s a thought

Here are some of the

benefits you get by joining

your staff pension scheme -

GMPF. Why not spend a few

minutes reading the rest of

this guide, to find out what

we have to offer - it could

be the most valuable few

minutes you’ll ever spend! Life cover

Lump sum life cover of 3 times your pay - and you can have a say in who it

goes to.

Shared costs

Your employer pays into the scheme with you - we

couldn’t offer all of this if they didn’t!

Family benefits

Pensions for your family and dependants if you die.

Inflation proofing

Our pensions normally go up each year in line with

prices to protect you from inflation

Benefits for you

A pension paid for life, plus the chance to draw some

of your package as a tax free lump

sum.


Here’s a thought 7

Here’s a thoughtDid you know that as working people, most of us

have to pay into some kind of pension scheme

on top of the Basic State Pension? So this means

having to choose one of the following...

l Paying more into the

state pensionl Joining your staff pension scheme -

gmpfl Arranging your own

personal pensionor stakeholder pension

6 Here’s a thought

Here are some of the

benefits you get by joining

your staff pension scheme -

GMPF. Why not spend a few

minutes reading the rest of

this guide, to find out what

we have to offer - it could

be the most valuable few

minutes you’ll ever spend! Life cover

Lump sum life cover of 3 times your pay - and you can have a say in who it

goes to.

Shared costs

Your employer pays into the scheme with you - we

couldn’t offer all of this if they didn’t!

Family benefits

Pensions for your family and dependants if you die.

Inflation proofing

Our pensions normally go up each year in line with

prices to protect you from inflation

Benefits for you

A pension paid for life, plus the chance to draw some

of your package as a tax free lump

sum.


Who can join?Membership of GMPF is open to you if you work for one of the local authorities in Greater Manchester, and a whole range of other organisations too. It doesn’t matter whether you are full time, part time, or even temporary - you are welcome to join as long as you are under 75 no matter how long your contract is for. Sorry - not open to teachers, police officers or firefighters, who all have their own schemes..

How to joinIf you work for one of our larger employers (like a local authority) they will bring you in automatically in most cases, unless your contract is for less than 3 months, in which case you will have to ask. At other employers where membership isn’t automatic, in many cases they will still give you the option of joining - please ask your employer to find out more.

Once you have joined, your employer will let us know, and with your help we will then sort out the paperwork...

Sorting out the paperworkAs a new member, or even if you are just moving between employers within the Scheme, it’s important you fill in the new member declaration form we send you.

How to

Join

8 How to join How to join 9

We will normally only accept transfers from other LGPS employers or schemes which are part of the Public Sector Transfer Club. At our discretion we may accept other transfers in exceptional circumances, for example if you are transferring back from a private firm which had been carrying out local authority services. Please note: you must ask about a transfer within 12 months of joining this Fund.

Public Sector Transfer ClubThis includes the Civil Service, the NHS, the Teachers’ Pension Scheme, the LGPS in Scotland and Ireland, and even some charities and private organisations. If you aren’t sure whether your scheme was part of this club, we can check for you.

LGPS transfersIf you have deferred benefits from a previous English/Welsh LGPS employment you can choose to either leave the benefits separate, or transfer the membership.

Please note: if you have more than one set of deferred benefits, different rules may apply to each.

If you didn’t build up enough membership to entitle you to deferred benefits, we will link this to your new membership automatically, as long as we know about it.

If you already draw a local government pensionWhether or not you join the Scheme again, you must tell the local authority fund which pays your pension about your new job. They will then check to see whether or not they have to reduce your pension.

Additional Voluntary Contributions (AVCs)If you have been paying AVCs you may be able to transfer them into our in house AVC scheme - please ask for details.

Been in a pension before?

CancellingMembership isn’t compulsory - you can cancel your membership at any time by letting your employer know in writing. You can ask them to cancel your membership any time after your request. Otherwise, they will just cancel it from the start of the next pay period.

Remember, you will normally have to pay into some other form of pension instead - and your employer may not pay into this with you.

SimpleGuidep8&9.indd 8-9 25/04/2013 11:12

Who can join?Membership of GMPF is open to you if you work for one of the local authorities in Greater Manchester, and a whole range of other organisations too. It doesn’t matter whether you are full time, part time, or even temporary - you are welcome to join as long as you are under 75 no matter how long your contract is for. Sorry - not open to teachers, police officers or firefighters, who all have their own schemes..

How to joinIf you work for one of our larger employers (like a local authority) they will bring you in automatically in most cases, unless your contract is for less than 3 months, in which case you will have to ask. At other employers where membership isn’t automatic, in many cases they will still give you the option of joining - please ask your employer to find out more.

Once you have joined, your employer will let us know, and with your help we will then sort out the paperwork...

Sorting out the paperworkAs a new member, or even if you are just moving between employers within the Scheme, it’s important you fill in the new member declaration form we send you.

How to

Join

8 How to join How to join 9

We will normally only accept transfers from other LGPS employers or schemes which are part of the Public Sector Transfer Club. At our discretion we may accept other transfers in exceptional circumances, for example if you are transferring back from a private firm which had been carrying out local authority services. Please note: you must ask about a transfer within 12 months of joining this Fund.

Public Sector Transfer ClubThis includes the Civil Service, the NHS, the Teachers’ Pension Scheme, the LGPS in Scotland and Ireland, and even some charities and private organisations. If you aren’t sure whether your scheme was part of this club, we can check for you.

LGPS transfersIf you have deferred benefits from a previous English/Welsh LGPS employment you can choose to either leave the benefits separate, or transfer the membership.

Please note: if you have more than one set of deferred benefits, different rules may apply to each.

If you didn’t build up enough membership to entitle you to deferred benefits, we will link this to your new membership automatically, as long as we know about it.

If you already draw a local government pensionWhether or not you join the Scheme again, you must tell the local authority fund which pays your pension about your new job. They will then check to see whether or not they have to reduce your pension.

Additional Voluntary Contributions (AVCs)If you have been paying AVCs you may be able to transfer them into our in house AVC scheme - please ask for details.

Been in a pension before?

CancellingMembership isn’t compulsory - you can cancel your membership at any time by letting your employer know in writing. You can ask them to cancel your membership any time after your request. Otherwise, they will just cancel it from the start of the next pay period.

Remember, you will normally have to pay into some other form of pension instead - and your employer may not pay into this with you.

SimpleGuidep8&9.indd 8-9 25/04/2013 11:12

The cost toyouThe cost to you will be between 5.5% and 7.5% of your pay, depending on which of these pay bands you fall into. We use your pensionable pay to work out your contributions - this is your pay before deductions, and should include the main elements of your pay - see facing page for more.

Band Yearly pay Contribution

1 Up to £13,700 5.5%

2 More than £13,700 and up to £16,100 5.8%





7 More than £87,100 7.5%

Part timers: if you are part time, it is your full time equivalent pay which decides which band you fall into.

Changes in pay: the bands will normally go up each year, so you shouldn’t change bands if you just get ordinary pay rises each year. But if you move to a new job - even with the same employer - you could find yourself changing bands and paying a new rate.

10 The cost to you

Steve works full time and earns £18,000 a year, so he falls into band 3 . This puts his contribution rate at 5.9%, which works out at just over £88 a month - less after savings in tax and National

Insurance (see below).

ExamplePensionable payThis is your pay before deductions and includes:

l Basic pay

l Bonus

l Contractual overtime

l Shift allowance

l Standby allowance

So this may not include all your pay as it doesn’t 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.

If you are unsure about the type of pay in your case, please ask your employer’s pensions officer.

Lower tax & National InsuranceIf you earn enough to pay tax and national insurance, then these will both be lower, bringing the cost in ‘take home pay’ down to about 2/3 of the cost shown on your payslip.

The cost to your employerOne of the benefits of joining a pension scheme like ours is that your employer pays in too. The cost to your employer goes up or down, and is set by an actuary every three years.

When working out how much each employer must pay, the actuary aims to make sure that the Fund can completely cover the cost of the benefits it will have to pay out.

The cost to you 11

We use two important things to work out your benefits: pay and membership. Here’s a little about each of them...

PayThis is the same type of pay we’ve already looked at, but this time we use your final pay - normally your pay taken over your final year, or one of the two years before that if better.

You can sometimes choose an even earlier pay figure if you face a pay cut whilst a member - please ask if you need to know more.

MembershipThe other important ingredient for working out your benefits is membership. This is worked out to the day and includes:

l How long you build up as a member

l Any membership you transfer in from another pension scheme

l Any extra membership you are given, for example retiring through ill health.

Sometimes time off work on reduced or no pay means you don’t build up membership for a period - please ask if you need to know more.

Benefits& what they are based on

12 Benefits & what they are based on

Pay & membership for part timers: Each period of membership you build up as a part timer

is scaled down, depending on how many hours you work. If you ever change your hours, each period will count as a different block of membership. When you leave, we will add

all the blocks of membership together to get your total membership.

But remember, whether you are part time or full time when you leave, we will always use the full time pay for your job to work out your benefits.

No limitsThere is no limit to the amount of membership we can use to work out your benefits. So the more you build up, the bigger your benefits

Prunella is about to retire, after 25

years in the scheme. She is part time now (working half time), but has been full time in the past. Here’s how we will treat her pay and membership...

Final pay:

Actual part time pay for half time: £10,000 a year

Full time pay for working out benefits: £20,000 a year

Membership:

15 years full time = 15 years

10 years working half time = 5 years

Total membership for working out benefits: 20 years

Example

Benefits & what they are based on 13


We use two important things to work out your benefits: pay and membership. Here’s a little about each of them...

PayThis is the same type of pay we’ve already looked at, but this time we use your final pay - normally your pay taken over your final year, or one of the two years before that if better.

You can sometimes choose an even earlier pay figure if you face a pay cut whilst a member - please ask if you need to know more.

MembershipThe other important ingredient for working out your benefits is membership. This is worked out to the day and includes:

l How long you build up as a member

l Any membership you transfer in from another pension scheme

l Any extra membership you are given, for example retiring through ill health.

Sometimes time off work on reduced or no pay means you don’t build up membership for a period - please ask if you need to know more.

Benefits& what they are based on

12 Benefits & what they are based on

Pay & membership for part timers: Each period of membership you build up as a part timer

is scaled down, depending on how many hours you work. If you ever change your hours, each period will count as a different block of membership. When you leave, we will add

all the blocks of membership together to get your total membership.

But remember, whether you are part time or full time when you leave, we will always use the full time pay for your job to work out your benefits.

No limitsThere is no limit to the amount of membership we can use to work out your benefits. So the more you build up, the bigger your benefits

Prunella is about to retire, after 25

years in the scheme. She is part time now (working half time), but has been full time in the past. Here’s how we will treat her pay and membership...

Final pay:

Actual part time pay for half time: £10,000 a year

Full time pay for working out benefits: £20,000 a year

Membership:

15 years full time = 15 years

10 years working half time = 5 years

Total membership for working out benefits: 20 years

Example

Benefits & what they are based on 13


If you joined the LGPS for the first time anytime from April 2008, then you will get a pension worked out like this...

But if you also have some membership before April 2008, then this part of your membership will get you both a pension and lump sum, worked out like this...

Swapping pension for lump sumAnd no matter which category you fall into, you can swap some pension to create a lump sum (or boost your existing lump sum). If you want to do this, you get £12 of lump sum for every £1 of pension you give up. See the example on the next page for more...

Benefits& how to work them out

14 Benefits & how to work them out

+Lump sum = Final Pay x Membership x 3 ÷ 80

Pension = Final Pay x Membership ÷ 80


Vicky has just joined the Fund, at the age of 45. So by the time she is 65 she will have built up 20 years’ membership. We will use her final pay at the time she retires to work out her benefits, but let’s use her current

pay of £21,000, to get a realistic idea of her benefits in today’s money...

Example

l You only need to decide whether you want to swap pension for lump sum just before you retire, and we will let you know about the limit on the size of your lump sum at the time.

i

l Once you are drawing your pension it will normally go up each year in line with prices so it keeps its value.

Benefits & how to work them out 15

Pension = £21,000 x 20 years ÷ 60

Pension of £5,000 a year

Tax free cash lump sum of £24,000

Standard package:Here’s how we work out Vicky’s standard package...

Which gives her a pension of £7,000

Bigger lump sum package:But remember, she can choose to give up some pension to create a lump sum too... let’s say she gives up £2000, this is how her benefits will look...

+


If you joined the LGPS for the first time anytime from April 2008, then you will get a pension worked out like this...

But if you also have some membership before April 2008, then this part of your membership will get you both a pension and lump sum, worked out like this...

Swapping pension for lump sumAnd no matter which category you fall into, you can swap some pension to create a lump sum (or boost your existing lump sum). If you want to do this, you get £12 of lump sum for every £1 of pension you give up. See the example on the next page for more...

Benefits& how to work them out

14 Benefits & how to work them out

+Lump sum = Final Pay x Membership x 3 ÷ 80



Vicky has just joined the Fund, at the age of 45. So by the time she is 65 she will have built up 20 years’ membership. We will use her final pay at the time she retires to work out her benefits, but let’s use her current

pay of £21,000, to get a realistic idea of her benefits in today’s money...

Example

l You only need to decide whether you want to swap pension for lump sum just before you retire, and we will let you know about the limit on the size of your lump sum at the time.

i

l Once you are drawing your pension it will normally go up each year in line with prices so it keeps its value.

Benefits & how to work them out 15

Pension = £21,000 x 20 years ÷ 60

Pension of £5,000 a year

Tax free cash lump sum of £24,000

Standard package:Here’s how we work out Vicky’s standard package...

Which gives her a pension of £7,000

Bigger lump sum package:But remember, she can choose to give up some pension to create a lump sum too... let’s say she gives up £2000, this is how her benefits will look...

+


Benefits& when you can draw themNormal retirementNormal retirement age is 65. This means you can retire at 65, without your employer’s permission, and there are no early retirement reductions.

But it is also possible to retire at other ages and in other ways, including...

l Retiring before 65 at your own choice

l Retiring through ill health

l Flexible retirement

l Retiring through redundancy or efficiency

l Late retirement: up to 75We’ll look at each of these in the next few pages...

You must have at least 3 months’ membership or have brought in a transfer to be able to draw your benefits.

normal retirement age is 65

16 Benefits & when you can draw them

Retiring before 65 at your own choice You can ask to retire and draw your benefits...

l From 60: you don’t need your employer’s permission

l From 55: only possible with your employer’s permission

If you choose to retire in this way, the early retirement reductions shown here will normally apply. Reductions are based on how long before 65 you choose to retire.

PENSION REDUCTIONS

Men Women

LUMP SUM REDUCTIONS

Men & Women

0 0% 0% 0% 1 6% 5% 2% 2 11% 10% 5% 3 16% 15% 7% 4 20% 19% 9% 5 24% 23% 12% 6 28% 27% 14% 7 32% 30% 16% 8 35% 33% 18% 9 38% 36% 20% 10 41% 39% 22%

YEARS EARLY

l 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.

l Employers can waive reductions on compassionate grounds, but this is rare.

l If your employer retires you for some other reason such as ill health or redundancy, different rules apply and there are no early retirement reductions. See over the page for more.

l If you joined before October 2006 and have long membership, you may face smaller or even no reductions if you pass the “85 test” - please ask if you need to know more.

So for example a man retiring 2 years early at age 63 has his pension reduced by 11% and a woman retiring 5 years early at 60 has her pension reduced by 23%.

Benefits & when you can draw them 17

i

11%

23%


normal retirement age is 65

Retiring early at your own choice You can ask to retire and draw your benefits...

l From 60: you don’t need your employer’s permission

l From 55: only possible with your employer’s permission

If you choose to retire in this way, the early retirement reductions shown here will normally apply. Reductions are based on how early you choose to retire - in other words how long it is before you will reach age 65.

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%

YEARS EARLY

l 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.l Employers can waive reductions on compassionate

grounds, but this is rare.l If your employer retires you for some other reason such as

ill health or redundancy, different rules apply and there are no early retirement reductions. See over the page for more.

l If you joined before October 2006 and have long membership, you may face smaller or even no reductions if you pass the “85 test” - please ask if you need to know more.

So for example a man retiring 2 years early at age 63 has his pension reduced by 11% and a woman retiring 5 years early at 60 has her pension reduced by 24%.


i

11%

24%

Retiring on Ill healthYour employer can retire you on ill health at any age as long as you have 3 months’ membership and satisfy the following two conditions:

l Your employer must be satisfied that you are permanently unable to do your own job, and

l They must also be satisfied you have a reduced capacity for gainful employment*

They will consult a specially qualified doctor in assessing your case, and they will class you as a tier 1, tier 2, or tier 3 ill health case, as shown opposite.

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 given some extra membership too.

Gainful employment means paid employment of at least 30 hours a week for at least 12 months.


No prospect of gainful employment before 65Benefits based on the membership you have built up so far, plus all the membership you would have built up by age 65.

i


Tier 1

No prospect of gainful employment in the next 3 years, but good prospect of gainful employment before 65Benefits 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.

Tier 2

Good prospect of gainful employment in the next 3 yearsBenefits 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 Three years pass

Tier 3

l If you are part time when you leave, the extra membership will be adjusted to reflect your part time hours.

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 rule’ if better (but the same rules about gainful employment apply).

i


Retiring on Ill healthYour employer can retire you on ill health at any age as long as you have 3 months’ membership and satisfy the following two conditions:

l Your employer must be satisfied that you are permanently unable to do your own job, and

l They must also be satisfied you have a reduced capacity for gainful employment*

They will consult a specially qualified doctor in assessing your case, and they will class you as a tier 1, tier 2, or tier 3 ill health case, as shown opposite.

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 given some extra membership too.

Gainful employment means paid employment of at least 30 hours a week for at least 12 months.


No prospect of gainful employment before 65Benefits based on the membership you have built up so far, plus all the membership you would have built up by age 65.

i


Tier 1

No prospect of gainful employment in the next 3 years, but good prospect of gainful employment before 65Benefits 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.

Tier 2

Good prospect of gainful employment in the next 3 yearsBenefits 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 Three years pass

Tier 3

l If you are part time when you leave, the extra membership will be adjusted to reflect your part time hours.

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 rule’ if better (but the same rules about gainful employment apply).

i



Please remember,

flexible retirement is only

possible if your employer allows it

- in other words it’s an employer

discretion.

Flexible retirementAs long as you are 55 or over, your employer can allow you to flexibly retire. You do this by reducing your hours or moving to a lower grade, then you draw all or part of your pension benefits whilst carrying on working. But watch out, the benefits you draw will normally be reduced if you are under 65 (unless your employer waives the reduction).

After you have flexibly retired, you carry on building up pension benefits in your ‘reduced’ job - unless of course you choose to opt out.

Redundancy/efficiencyAs long as you are 55 or over and your employer makes you redundant or retires you in the interests of efficiency, we will pay your pension benefits immediately. If you retire in this way, there will be no early retirement reductions in your ordinary benefits (but there will be in the benefits from the buying extra pension option if you choose it).

Late retirementYou can stay in the Scheme as late as 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.


i Even if you work beyond 75, we must pay your benefits at 75.



Please remember,

flexible retirement is only

possible if your employer allows it

- in other words it’s an employer

discretion.

Flexible retirementAs long as you are 55 or over, your employer can allow you to flexibly retire. You do this by reducing your hours or moving to a lower grade, then you draw all or part of your pension benefits whilst carrying on working. But watch out, the benefits you draw will normally be reduced if you are under 65 (unless your employer waives the reduction).

After you have flexibly retired, you carry on building up pension benefits in your ‘reduced’ job - unless of course you choose to opt out.

Redundancy/efficiencyAs long as you are 55 or over and your employer makes you redundant or retires you in the interests of efficiency, we will pay your pension benefits immediately. If you retire in this way, there will be no early retirement reductions in your ordinary benefits (but there will be in the benefits from the buying extra pension option if you choose it).

Late retirementYou can stay in the Scheme as late as 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.


i Even if you work beyond 75, we must pay your benefits at 75.


Lump sumlife cover

Steve lives with his partner Jane, and he has nominated her to receive the lump sum if he dies.

Steve’s pay over the last 12 months has been £20,000, so if he died now, we would pay out a lump sum of £60,000.

Even if Steve leaves the Scheme and leaves his benefits deferred with us, or retires and dies before he has drawn a full ten years’ pension, he will still have some form of cover.

Example

22 Lump sum life cover

After retirementIf you die before you have drawn ten years’ pension, we will normally pay what’s left as a lump sum. (Different rules apply to members who left before 1 April 2008).

If you leave with deferred benefitsWe will also pay a lump sum if you leave the Scheme, leaving deferred benefits with us (see Leavers’ Choices for more). The lump sum is five times the up to date value of your retirement pension. (Different rules apply to members who left before 1 April 2008).

Who we will pay the lump sum toWe will decide who to pay the lump sum to, but we will always take your wishes into account. To help us with this, please fill in a Lump sum nomination form to let us know who you would like to benefit. If you do not do this, we will normally pay the lump sum to your estate.

If you would like to make a nomination but don’t have a form, please download one from our website at www.gmpf.org.uk or ask your employer’s pensions officer, or call our helpline on 0161 301 7000.

We can

only pay out lump sum life

cover if you are under 75 when

you die

Lump sum life cover 23

From the moment you join you have valuable lump sum life cover. The lump sum varies depending on whether you die before retirement, after retirement, or with deferred benefits...

Death in serviceIf you die before you retire we will pay out a lump sum equal to three years’ final pay. If you are part time, this is three years’ part time pay.


Lump sumlife cover

Steve lives with his partner Jane, and he has nominated her to receive the lump sum if he dies.

Steve’s pay over the last 12 months has been £20,000, so if he died now, we would pay out a lump sum of £60,000.

Even if Steve leaves the Scheme and leaves his benefits deferred with us, or retires and dies before he has drawn a full ten years’ pension, he will still have some form of cover.

Example

22 Lump sum life cover

After retirementIf you die before you have drawn ten years’ pension, we will normally pay what’s left as a lump sum. (Different rules apply to members who left before 1 April 2008).

If you leave with deferred benefitsWe will also pay a lump sum if you leave the Scheme, leaving deferred benefits with us (see Leavers’ Choices for more). The lump sum is five times the up to date value of your retirement pension. (Different rules apply to members who left before 1 April 2008).

Who we will pay the lump sum toWe will decide who to pay the lump sum to, but we will always take your wishes into account. To help us with this, please fill in a Lump sum nomination form to let us know who you would like to benefit. If you do not do this, we will normally pay the lump sum to your estate.

If you would like to make a nomination but don’t have a form, please download one from our website at www.gmpf.org.uk or ask your employer’s pensions officer, or call our helpline on 0161 301 7000.

We can

only pay out lump sum life

cover if you are under 75 when

you die

Lump sum life cover 23

From the moment you join you have valuable lump sum life cover. The lump sum varies depending on whether you die before retirement, after retirement, or with deferred benefits...

Death in serviceIf you die before you retire we will pay out a lump sum equal to three years’ final pay. If you are part time, this is three years’ part time pay.


If you leave dependants when you die, we will pay them a pension, as shown in this section. The amount of pension they get depends on whether you die...

l before retirement

l after retirement, or

l as a deferred member

But first let’s look at who counts as a dependant...

Pensionsfor dependants

24 Pensions for dependants

Husband or wife: - in other words you are

legally married. No need to take any action now, but if you die, we will need to see your marriage certificate.

i

Your dependent children - this normally means children under the age of 18, (age 17 for those who left before 1 April 2008) or under 23 if in continuing education.

No need to take any action now, but we can only pay pensions to children for as long as we class them as dependent. i

Nominated cohabiting partner - in other words a long

term partner you have told us about.

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.

i

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.

i

plus

The classes of dependant are...

Pensions for dependants 25

or or

Please note: This is not available to those who left before 1 April 2008.


If you leave dependants when you die, we will pay them a pension, as shown in this section. The amount of pension they get depends on whether you die...

l before retirement

l after retirement, or

l as a deferred member

But first let’s look at who counts as a dependant...

Pensionsfor dependants


Husband or wife: - in other words you are

legally married. No need to take any action now, but if you die, we will need to see your marriage certificate.

i

Your dependent children - this normally means children under the age of 18, (age 17 for those who left before 1 April 2008) or under 23 if in continuing education.

No need to take any action now, but we can only pay pensions to children for as long as we class them as dependent. i

Nominated cohabiting partner - in other words a long

term partner you have told us about.

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.

i

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.

i

plus

The classes of dependant are...


or or

Please note: This is not available to those who left before 1 April 2008.


If you die before you retire, we will pay your dependants a pension based on your pay and an enhanced membership - in other words the membership you have built up so far, plus the membership you would have built up by age 65. Here’s how the various pensions are worked out:

We also pay dependants’ benefits when members die after leaving, or whilst on pension, but these are worked out differently. Please ask if you need to know more...

if you die in service

Pension for husband, wife, civil partner or nominated cohabiting partner

l If you have membership before 6 April 1988, this won’t count towards a pension for a nominated cohabiting partner unless you pay extra

160÷MembershipxPay

Pension for one child, where we also pay a pension to your husband/wife/civil partner or nominated cohabiting partner

320÷MembershipxPay

Pension for one child, where there is no pension for your husband/wife/ civil partner or nominated cohabiting partner

240÷MembershipxPay

Pension for 2 or more children, where we also pay a pension to your husband/wife/civil partner or nominated cohabiting partner

160÷MembershipxPay

Pension for 2 or more children, where there is no pension for your husband/wife/civil partner or nominated cohabiting partner

120÷MembershipxPay


Bill lives with his long term partner Carol, and has nominated her as a cohabiting partner. They have one son, Joe. Bill’s pay in the last 12 months has been £20,000. He has built up 18 years in the LGPS, and has 10 years until age 65. If he died in service now, we would pay the following dependants benefits, based on a total of 28 years’ membership (18 plus an extra 10). l Pension paid to Carol for her lifetime: £3,500 a year

l Pension paid to Joe for as long £1,750 a yearas dependent:

Remember if Bill died with deferred benefits or died on pension, the figures would be different.

Example

Remember if you live with a partner, they can only qualify for a pension if you nominate them...


i


If you die before you retire, we will pay your dependants a pension based on your pay and an enhanced membership - in other words the membership you have built up so far, plus the membership you would have built up by age 65. Here’s how the various pensions are worked out:

We also pay dependants’ benefits when members die after leaving, or whilst on pension, but these are worked out differently. Please ask if you need to know more...

if you die in service

Pension for husband, wife, civil partner or nominated cohabiting partner

l If you have membership before 6 April 1988, this won’t count towards a pension for a nominated cohabiting partner unless you pay extra

160÷MembershipxPay

Pension for one child, where we also pay a pension to your husband/wife/civil partner or nominated cohabiting partner

320÷MembershipxPay

Pension for one child, where there is no pension for your husband/wife/ civil partner or nominated cohabiting partner

240÷MembershipxPay

Pension for 2 or more children, where we also pay a pension to your husband/wife/civil partner or nominated cohabiting partner

160÷MembershipxPay

Pension for 2 or more children, where there is no pension for your husband/wife/civil partner or nominated cohabiting partner

120÷MembershipxPay


Bill lives with his long term partner Carol, and has nominated her as a cohabiting partner. They have one son, Joe. Bill’s pay in the last 12 months has been £20,000. He has built up 18 years in the LGPS, and has 10 years until age 65. If he died in service now, we would pay the following dependants benefits, based on a total of 28 years’ membership (18 plus an extra 10). l Pension paid to Carol for her lifetime: £3,500 a year

l Pension paid to Joe for as long £1,750 a yearas dependent:

Remember if Bill died with deferred benefits or died on pension, the figures would be different.

Example

Remember if you live with a partner, they can only qualify for a pension if you nominate them...


i


Leavers’choicesIf you leave and you aren’t entitled to draw your benefits immediately, you have various choices...

If you have less than three months membership you can choose between...

A refundThis is where we simply pay you back the money you have paid in. This is open to you as long as you haven’t brought in a transfer from another pension scheme, and don’t have any other LGPS membership in England or Wales.

A transfer This is where we work out the ‘cash value’ of your benefits, then pay this over to another pension scheme, for example a company pension scheme or a personal pension.

28 Leavers’ choices

More about refunds

l If you choose a refund you will get back your own contributions, but not any of your employer’s. Before you get your refund, we will have to take tax and National Insurance from it.

l The earliest we can pay the refund is a month and two days after you leave, but if we pay it more than 12 months after you leave we will add interest to cover the period from the date you leave.

l Please note: if you join the Scheme again before we have paid the refund, we will have to cancel the refund and automatically link the membership with your new job instead.

i

Opting out: Even if you aren’t leaving your employer, you can opt out of the LGPS. If you do this within the first 3 months, you will get a refund through your employer’s payroll.

If you aren’t entitled to a refund you can choose between...

Deferred benefitsThis is where we work out the value of your benefits, then hold them for you until a later date. We will automatically defer your benefits if you don’t ask us to transfer them.

l We will normally increase your deferred benefits in line with the cost of living, and will send you an illustration of this each year.

l You can generally draw your deferred benefits at the same age as you would have done had you stayed in the Scheme. The exact details will depend on the rules that were in place at the time you left, but generally this means: From 60: you don’t need permission from your old employer. From 55: only if you have permission from your old employer.

l If you draw your deferred benefits early on grounds of ill health, you will not be awarded any extra years, as a current member would.

l If you join another pension scheme at some point in the future, you can ask us about transferring your deferred benefits into it.

l If you keep your defered benefits with us and you join this Scheme again, you normally only have 12 months from the date you join to link your deferred benefits with your new membership, and if you have more than one set of deferred benefits, different rules may apply to each.

l If you die before you have drawn your deferred benefits, we will pay out a lump sum, and pensions to your dependents.


l The transfer value is based on the value of the benefits you have built up including your own retirement benefits and a pension for your husband/wife/civil partner/nominated cohabiting partner. To do this, we use factors supplied by the Government Actuary which take account of inflation, investment returns and life expectancy. We then make what is called a market value adjustment, which either increases or decreases the transfer value depending on investment returns at the time.

l You can ask us for details about a transfer any time up to your 64th birthday (as long as we haven’t paid the benefits) and we will provide you with a statement within three months. If you want to go ahead, you should write and tell us within three months of the statement date, and we guarantee to pay it within six months. If this is not possible, we will work out the transfer again and either pay the new amount, or the old amount plus interest if better.

l Even if you do not ask for a transfer as soon as you leave, you can ask for one at some point in the future. In fact you have the right to ask for an up to date statement of the transfer value once a year. But watch out, some schemes restrict inward transfers.

Leavers’ choices 29

Multiple jobs: If you have more than one job and leave one of them, you can defer the benefits from that job, or transfer the membership to your other job.

or

or


Leavers’choicesIf you leave and you aren’t entitled to draw your benefits immediately, you have various choices...

If you have less than three months membership you can choose between...

A refundThis is where we simply pay you back the money you have paid in. This is open to you as long as you haven’t brought in a transfer from another pension scheme, and don’t have any other LGPS membership in England or Wales.


28 Leavers’ choices

More about refunds

l If you choose a refund you will get back your own contributions, but not any of your employer’s. Before you get your refund, we will have to take tax and National Insurance from it.

l The earliest we can pay the refund is a month and two days after you leave, but if we pay it more than 12 months after you leave we will add interest to cover the period from the date you leave.

l Please note: if you join the Scheme again before we have paid the refund, we will have to cancel the refund and automatically link the membership with your new job instead.

i

Opting out: Even if you aren’t leaving your employer, you can opt out of the LGPS. If you do this within the first 3 months, you will get a refund through your employer’s payroll.

If you aren’t entitled to a refund you can choose between...

Deferred benefitsThis is where we work out the value of your benefits, then hold them for you until a later date. We will automatically defer your benefits if you don’t ask us to transfer them.

l We will normally increase your deferred benefits in line with the cost of living, and will send you an illustration of this each year.

l You can generally draw your deferred benefits at the same age as you would have done had you stayed in the Scheme. The exact details will depend on the rules that were in place at the time you left, but generally this means: From 60: you don’t need permission from your old employer. From 55: only if you have permission from your old employer.

l If you draw your deferred benefits early on grounds of ill health, you will not be awarded any extra years, as a current member would.

l If you join another pension scheme at some point in the future, you can ask us about transferring your deferred benefits into it.

l If you keep your defered benefits with us and you join this Scheme again, you normally only have 12 months from the date you join to link your deferred benefits with your new membership, and if you have more than one set of deferred benefits, different rules may apply to each.

l If you die before you have drawn your deferred benefits, we will pay out a lump sum, and pensions to your dependents.


l The transfer value is based on the value of the benefits you have built up including your own retirement benefits and a pension for your husband/wife/civil partner/nominated cohabiting partner. To do this, we use factors supplied by the Government Actuary which take account of inflation, investment returns and life expectancy. We then make what is called a market value adjustment, which either increases or decreases the transfer value depending on investment returns at the time.

l You can ask us for details about a transfer any time up to your 64th birthday (as long as we haven’t paid the benefits) and we will provide you with a statement within three months. If you want to go ahead, you should write and tell us within three months of the statement date, and we guarantee to pay it within six months. If this is not possible, we will work out the transfer again and either pay the new amount, or the old amount plus interest if better.

l Even if you do not ask for a transfer as soon as you leave, you can ask for one at some point in the future. In fact you have the right to ask for an up to date statement of the transfer value once a year. But watch out, some schemes restrict inward transfers.

Leavers’ choices 29

Multiple jobs: If you have more than one job and leave one of them, you can defer the benefits from that job, or transfer the membership to your other job.

or

or


We offer three easy ways of topping up your benefits...

Buying Extra Pension

AVCs

Additional Death Benefits

Just like your normal contributions, you get tax relief on each, and you can even pay into more than one at once, if you like. There are few limits on how much you can pay in, so this gives you quite a lot of scope to top up your benefits.

Topping Buying Extra PensionThis is a way of getting a bigger pension from the

Scheme for you and also for your dependants if you wish. It’s open to you no matter what other benefits you will build up. You decide how much extra pension you want to buy, in £250 steps. So for example you can boost your pension by £250, or £500, or £750 - all the way up to a maximum of £5000. You also choose how long you want to pay for.

Important notes: l You can only sign up for this option if your doctor

satisfies us that you are in reasonable health

l The Government may change the rates from time to time - if this happens you can choose to pay the higher rate, or stop your payments.

l When you draw the extra pension, it will be the inflation proofed value of the amount you bought.

For more information about Buying Extra Pension, please contact our Pensions Helpline on:

0161 301 7000.

up your benefits

3

12

1

30 Topping up your benefits

Additional Voluntary ContributionsAVCs are simply a form of investment to build up a

separate pot of money which you draw in the form of a separate pension and/or a lump sum.

Funds like us use outside AVC providers to run their in house AVC schemes, and we have chosen Prudential.

You can pay up to 50% of your earnings into AVCs, and there is no minimum amount. You can either pay a fixed amount into your AVCs, or a percentage, so the amount changes if your pay changes.

For more information about AVCs, please contact Prudential’s Pension Connection service on:

0845 607 0077.

2 Additional Death benefitsThis is a way of providing extra life cover and more

protection for your family on top of the valuable cover you already enjoy as a member. The scheme is also run through the Prudential and is open to every member. You can use it simply to provide extra lump sum life cover, or dependants’ pensions too.


0845 607 0077.

3

Topping up your benefits 31


We offer three easy ways of topping up your benefits...

Buying Extra Pension

AVCs

Additional Death Benefits

Just like your normal contributions, you get tax relief on each, and you can even pay into more than one at once, if you like. There are few limits on how much you can pay in, so this gives you quite a lot of scope to top up your benefits.

Topping Buying Extra PensionThis is a way of getting a bigger pension from the

Scheme for you and also for your dependants if you wish. It’s open to you no matter what other benefits you will build up. You decide how much extra pension you want to buy, in £250 steps. So for example you can boost your pension by £250, or £500, or £750 - all the way up to a maximum of £5000. You also choose how long you want to pay for.

Important notes: l You can only sign up for this option if your doctor

satisfies us that you are in reasonable health

l The Government may change the rates from time to time - if this happens you can choose to pay the higher rate, or stop your payments.

l When you draw the extra pension, it will be the inflation proofed value of the amount you bought.

For more information about Buying Extra Pension, please contact our Pensions Helpline on:

0161 301 7000.

up your benefits

3

12

1

30 Topping up your benefits

Additional Voluntary ContributionsAVCs are simply a form of investment to build up a

separate pot of money which you draw in the form of a separate pension and/or a lump sum.

Funds like us use outside AVC providers to run their in house AVC schemes, and we have chosen Prudential.

You can pay up to 50% of your earnings into AVCs, and there is no minimum amount. You can either pay a fixed amount into your AVCs, or a percentage, so the amount changes if your pay changes.


0845 607 0077.

2 Additional Death benefitsThis is a way of providing extra life cover and more

protection for your family on top of the valuable cover you already enjoy as a member. The scheme is also run through the Prudential and is open to every member. You can use it simply to provide extra lump sum life cover, or dependants’ pensions too.


0845 607 0077.

3

Topping up your benefits 31


Your pension& the cost of livingWe normally increase our pensions each April in line with any increase in prices. This is laid down in law, and is the only inflation related increase we can pay. The Government decides which measure of inflation we are to use, and currently increases are based on the Consumer Prices Index (CPI).

Your own pensionWe will normally pay your first pensions increase the April after you retire.

If you draw your benefits because of ill health: We will pay the full pensions increase no matter how young or old you are. But if you draw deferred benefits because of ill health, we can only pay your pensions increase before 55 if you are permanently too ill to work at all.

Dependants’ pensionsPensions for husbands, wives, civil partners, nominated cohabiting partners and dependent children qualify for increases, no matter how young or old they are.

32 Your pension & the cost of living

breaks downWhen a marriage or civil partnership

Your pension benefits can be worth a considerable amount, and if you go through a divorce/dissolution, the value of these benefits needs to be taken into account. The first step is to value your benefits, and as the member, you or your solicitor (with your authority) can ask for this value (as can the court in special circumstances), but your husband, wife, civil partner or their solicitor cannot.

There are three main ways of treating your pension benefits during a divorce/dissolution:

Offsetting: where the value of your benefits is offset against other assets. So to take a simple example, you might keep your £60,000 worth of pension benefits, but your ‘ex’ would keep the £60,000 house.

Earmarking: where part of your pension is paid to your ‘ex’ at the point you draw it.

Pension sharing: Where the value of your benefits is split, and part of it used to set up your ‘ex’ with a completely separate pension ‘pot’.

Time limits: There are strict time limits for sorting out the pension arrangements during a divorce or dissolution, so if you or your solicitor need information, please get in touch straightaway by calling: 0161 301 7000 or 0161 301 7033.

When a marriage or civil partnership breaks down 33


Your pension& the cost of livingWe normally increase our pensions each April in line with any increase in prices. This is laid down in law, and is the only inflation related increase we can pay. The Government decides which measure of inflation we are to use, and currently increases are based on the Consumer Prices Index (CPI).

Your own pensionWe will normally pay your first pensions increase the April after you retire.

If you draw your benefits because of ill health: We will pay the full pensions increase no matter how young or old you are. But if you draw deferred benefits because of ill health, we can only pay your pensions increase before 55 if you are permanently too ill to work at all.

Dependants’ pensionsPensions for husbands, wives, civil partners, nominated cohabiting partners and dependent children qualify for increases, no matter how young or old they are.

32 Your pension & the cost of living

breaks downWhen a marriage or civil partnership

Your pension benefits can be worth a considerable amount, and if you go through a divorce/dissolution, the value of these benefits needs to be taken into account. The first step is to value your benefits, and as the member, you or your solicitor (with your authority) can ask for this value (as can the court in special circumstances), but your husband, wife, civil partner or their solicitor cannot.

There are three main ways of treating your pension benefits during a divorce/dissolution:

Offsetting: where the value of your benefits is offset against other assets. So to take a simple example, you might keep your £60,000 worth of pension benefits, but your ‘ex’ would keep the £60,000 house.

Earmarking: where part of your pension is paid to your ‘ex’ at the point you draw it.

Pension sharing: Where the value of your benefits is split, and part of it used to set up your ‘ex’ with a completely separate pension ‘pot’.

Time limits: There are strict time limits for sorting out the pension arrangements during a divorce or dissolution, so if you or your solicitor need information, please get in touch straightaway by calling: 0161 301 7000 or 0161 301 7033.

When a marriage or civil partnership breaks down 33


Behind the scenes

34 Behind the scenes

About the SchemeThe Local Government Pension Scheme is a statutory scheme. The scheme rules are written by a Government department - in our case Communities and Local Government - and then passed by Parliament.

The Scheme is contracted out of the second State pension, so you pay less National Insurance. The Scheme is also registered for tax purposes, which means you get tax relief on your pension contributions.

About the FundThe Scheme is run through 99 regional funds - we are Greater Manchester Pension Fund, or GMPF for short. GMPF is the largest local authority fund in the country, and membership is enjoyed by people who work for the ten local authorities in Greater Manchester, as well as a wide range of other organisations such as local colleges and Citizens Advice Bureaux. It can even include private companies which have taken over local authority functions.

About Tameside MBCGMPF is run by Tameside MBC, and we are involved in every stage of your membership - everything from setting up your pension records when you join, to keeping up to date with any changes your employer tells us about, and ultimately paying your benefits when you retire.

Managing the Fund’s moneyTameside is responsible for managing the Fund’s money and handling its investments. Most of the Fund’s investments are managed by three leading outside companies. But the property portfolio and some local investments are managed in house.

Investment strategy is decided by the Pension Fund Management Panel. This meets four times a year, and does a similar job to the trustees of a private company pension scheme.

The Panel is made up of Councillors mainly from Tameside, and is advised by outside investment experts, and also the Pension Fund Advisory Panel. The Advisory Panel is made up of both local councillors and also union representatives from major trade unions. As a member your benefits are totally secure and the Fund’s assets are completely separate from your employer’s or Tameside’s.

Your recordsTo run the pension fund, we need to store certain information about you - for example your date of birth and your home address, in line with the Data Protection Act.

Data protectionTameside MBC is registered as the Data Controller for the details we hold about you.

We hold these details on computer, and larger employers have access to some data for their own staff only. This means they can do things like producing retirement estimates, but they can’t see the details of any nomination you have made.

The Fund’s actuary need certain details to carry out the three yearly check. So we send them things like your age and membership, but not the details of any death grant nominations.

Behind the scenes 35


Behind the scenes


About the SchemeThe Local Government Pension Scheme is a statutory scheme. The scheme rules are written by a Government department - in our case Communities and Local Government - and then passed by Parliament.

The Scheme is contracted out of the second State pension, so you pay less National Insurance. The Scheme is also registered for tax purposes, which means you get tax relief on your pension contributions.

About the FundThe Scheme is run through 99 regional funds - we are Greater Manchester Pension Fund, or GMPF for short. GMPF is the largest local authority fund in the country, and membership is enjoyed by people who work for the ten local authorities in Greater Manchester, as well as a wide range of other organisations such as local colleges and Citizens Advice Bureaux. It can even include private companies which have taken over local authority functions.

About Tameside MBCGMPF is run by Tameside MBC, and we are involved in every stage of your membership - everything from setting up your pension records when you join, to keeping up to date with any changes your employer tells us about, and ultimately paying your benefits when you retire.

Managing the Fund’s moneyTameside is responsible for managing the Fund’s money and handling its investments. Most of the Fund’s investments are managed by three leading outside companies. But the property portfolio and some local investments are managed in house.

Investment strategy is decided by the Pension Fund Management Panel. This meets four times a year, and does a similar job to the trustees of a private company pension scheme.

The Panel is made up of Councillors mainly from Tameside, and is advised by outside investment experts, and also the Pension Fund Advisory Panel. The Advisory Panel is made up of both local councillors and also union representatives from major trade unions. As a member your benefits are totally secure and the Fund’s assets are completely separate from your employer’s or Tameside’s.

Your recordsTo run the pension fund, we need to store certain information about you - for example your date of birth and your home address, in line with the Data Protection Act.

Data protectionTameside MBC is registered as the Data Controller for the details we hold about you.

We hold these details on computer, and larger employers have access to some data for their own staff only. This means they can do things like producing retirement estimates, but they can’t see the details of any nomination you have made.

The Fund’s actuary need certain details to carry out the three yearly check. So we send them things like your age and membership, but not the details of any death grant nominations.

Behind the scenes 35



Your employer’s roleAlthough Tameside runs the Fund, your employer has a vital part to play, and their own decisions to make.

Your employer decides if and when you can join, and works out what pay to take contributions from, collects them, and passes them to the Fund.

They also send us the information we need to keep your records up to date, such as changes in hours.

Employer choices: Although most aspects of the Scheme are fixed, your employer has discretion over some of them - in other words they have a choice - and we have shown these on the right.

Your pensions officer: Your employer will have a pensions officer, or somebody else such as a personnel officer who is responsible for pensions, and they will be able to tell you more about the choices they have made. In fact your employer has to publish a policy, describing in broad terms how they will use their discretion in most of these areas.

Employer choicesl Retirement before 60

l Awarding extra membership

l A shared cost AVC scheme

l Waiving reductions for early retirement on compassionate grounds

l Deciding whether you can flexibly retire

But remember, when deciding how to use their discretion, your employer will probably take into account any extra cost to them.

informed

Keeping you informed 37

Keeping you

When you first join, we will set up your membership records, then issue a membership certificate and send both you and your employer a copy. This is a summary of the main information we hold about you, such as your date of birth, and when you joined. We will also send you a new one whenever there is a significant change, such as a change in your hours.

We produce an in house newsletter called Pension Power, and this normally comes out twice a year. As well as keeping you up to date with any important changes in the Scheme rules, there are articles to help explain how the Scheme works, and also information on State benefits and other useful topics.

We will send you a pensions forecast each year, to show you the benefits you have built up at 31 March. It will also show you what you could build up by the time you retire, and has information about the life cover and other protection you have as a member.

We produce an Annual Report & Accounts, which reports on the Fund’s investments, and includes the names of all the employers in the Fund, and the percentage they pay towards your benefits.

Most publications are available on our website, and in print.

How you can helpTo make sure any information we send to your home address reaches you, please let us know if you move house.



Your employer’s roleAlthough Tameside runs the Fund, your employer has a vital part to play, and their own decisions to make.

Your employer decides if and when you can join, and works out what pay to take contributions from, collects them, and passes them to the Fund.

They also send us the information we need to keep your records up to date, such as changes in hours.

Employer choices: Although most aspects of the Scheme are fixed, your employer has discretion over some of them - in other words they have a choice - and we have shown these on the right.

Your pensions officer: Your employer will have a pensions officer, or somebody else such as a personnel officer who is responsible for pensions, and they will be able to tell you more about the choices they have made. In fact your employer has to publish a policy, describing in broad terms how they will use their discretion in most of these areas.

Employer choicesl Retirement before 60

l Awarding extra membership

l A shared cost AVC scheme

l Waiving reductions for early retirement on compassionate grounds

l Deciding whether you can flexibly retire

But remember, when deciding how to use their discretion, your employer will probably take into account any extra cost to them.

informed

Keeping you informed 37

Keeping you

When you first join, we will set up your membership records, then issue a membership certificate and send both you and your employer a copy. This is a summary of the main information we hold about you, such as your date of birth, and when you joined. We will also send you a new one whenever there is a significant change, such as a change in your hours.

We produce an in house newsletter called Pension Power, and this normally comes out twice a year. As well as keeping you up to date with any important changes in the Scheme rules, there are articles to help explain how the Scheme works, and also information on State benefits and other useful topics.

We will send you a pensions forecast each year, to show you the benefits you have built up at 31 March. It will also show you what you could build up by the time you retire, and has information about the life cover and other protection you have as a member.

We produce an Annual Report & Accounts, which reports on the Fund’s investments, and includes the names of all the employers in the Fund, and the percentage they pay towards your benefits.

Most publications are available on our website, and in print.

How you can helpTo make sure any information we send to your home address reaches you, please let us know if you move house.


How tocomplainIf 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 over the page).

Making your complaintPlease ring our helpline on 0161 301 7000 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 complaintYour 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...The Director of PensionsCouncil Offices Wellington Road Ashton-under-Lyne Tameside, OL6 6DL

Stage 2 - further appealIf you are unhappy with the stage 1 decision you have six months to appeal to a stage 2 referee, who has 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. The Pensions Referee, Room 2:48, Council Offices, Wellington Road, Ashton-under-Lyne, Tameside, OL6 6DL

Complaints against your employer...Please write to your employer’s Pensions Officer.

38 How to complain

Outside organisationsThe 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

0845 6002 537

State pensions: please contact your local Department for Work & Pensions Office

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.Visit: www.unbiased.co.ukto search for an adviser in your area.

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

0845 601 2923

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.


020 7630 2200

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

0870 606 3636

Outside organisations 39


How tocomplainIf 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 over the page).

Making your complaintPlease ring our helpline on 0161 301 7000 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 complaintYour 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...The Director of PensionsCouncil Offices Wellington Road Ashton-under-Lyne Tameside, OL6 6DL

Stage 2 - further appealIf you are unhappy with the stage 1 decision you have six months to appeal to a stage 2 referee, who has 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. The Pensions Referee, Room 2:48, Council Offices, Wellington Road, Ashton-under-Lyne, Tameside, OL6 6DL

Complaints against your employer...Please write to your employer’s Pensions Officer.

38 How to complain

Outside organisationsThe 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

0845 6002 537

State pensions: please contact your local Department for Work & Pensions Office

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.Visit: www.unbiased.co.ukto search for an adviser in your area.

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:


0845 601 2923

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.


020 7630 2200

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

0870 606 3636

Outside organisations 39


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 19(web), April '13

Visit our website to find out more or to contact us by email:

Or call our friendly helpline on:

www.gmpf.org.uk

0161 301 7000Or call in at our offices:

GMPF, Concord Suite, Manchester Rd, Droylsden, M43 6SF.

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.

Can we help?

Pension Guidecover2013.indd 2 18/04/2013 10:35

Your Pension a Simple Guide

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