The first payment of pension will be made as soon as possible on the normal payroll run date after your retirement. If your retirement date and your payroll run date have already passed then any pension due will be paid together in your first instalment of pension
Your annual pension is taxable income. When we set your record up on our payroll, we are instructed by HM Revenue & Customs (HMRC) to use emergency tax code OT or OT Cumulative for retired teachers (unless you have retired from active employment and your former employer has forwarded your P45 detailing your correct tax code directly to us). We then send all your details to HMRC who will inform us of the correct code once they have made their assessment.
Our instruction from HMRC is also to set up all Children's pensions on the tax code 944L. Trivial commutation payments are now paid with basic rate tax (currently 20%).
Any under or over payment of tax will be collected through the payroll if the correct code is received in the current tax year.
Your pension will be paid by credit transfer directly into your nominated bank or building society account.
Pensions will be paid in either arrears on the last working day of the month or in advance on the 1st of every month (unless that falls on a weekend or bank holiday, when it will then be paid on the last working day prior to the 1st). The payment dates are dependant on which scheme you have retired from and on what date. The table below should help you to determine whether you will be set up on an arrears or an advance payroll:
Retirement before 6/4/2012
First of every month
Retirement on or after 6/4/2012
Last working day of the month
You will only receive a pay statement in April and May each year and if your pension has varied by more than £1 from the previous month.
Due to the time needed to set up your pension, we may not always be able to pay you in the first regular payroll run after you retire.
If this is the case, we will pay any arrears due to you on the first payroll run after you have been set up on the payroll system.
If you would like a copy of your payslip in another format such as Braille, large print or another language please contact pensions services.
We have to apply the tax code supplied to us by the tax office. When we set your record up, if we haven’t received a tax code from the tax office yet we are instructed to use 0T on a month 1 basis.
If you think we have the wrong code, then please contact the Tax office.
When you contact the tax office please ensure that you have to hand or quote your national insurance number and relevant tax reference, which are:
LGPS (retirements before 6/4/2012)
Councillors (retirements before 6/4/2012)
LGPS (retirements on or after 6/4/2012
Councillors (retirement on or after 6/4/2012
This could be due to a recent tax code change. If you would like to query the tax code we hold for you please contact the tax office direct on 0845 3000627.
You will get a P60 after the end of each tax year, showing you the amount of pension paid and tax deducted during the year. If you have any tax queries, you should address them with the tax office dealing with your pension.
The lifetime allowance (LTA) is set by HM Revenue and Customs. On your P60 we show you how much of the lifetime allowance you have used with this pension.
The capital value of all of a person’s pension rights are tested against the lifetime allowance (LTA) each time they take pension benefits. If the total of all your pensions is more than the LTA (or any lifetime allowance protection) extra tax will be due on the excess.
The lifetime allowance does not include state retirement pension, state pension credit, spouse’s, civil partner’s or dependant’s pensions.
Pensions paid by the Hampshire Pension Fund are increased annually in line with the cost of living. They are based upon the rise in the Consumer Price Index to September of the previous year. Pensions increases are determined by the HM Treasury and approved by Parliament, take effect from 8 April 2013.
The current annual increases are outlined below:
23/04/12 and before
24/04/12 to 23/05/12
24/10/12 to 23/11/12
24/05/12 to 23/06/12
24/11/12 to 23/12/12
24/06/12 to 23/07/12
24/12/12 to 23/01/13
24/07/12 to 23/08/12
24/01/13 to 23/02/13
24/08/12 to 23/09/12
24/02/13 to 23/03/13
24/09/12 to 23/10/12
The first increase that you will receive in the April following your retirement, resignation or death of your spouse will be a proportion of the full increase due, based on the number of months you have been retired.
If you are under 55, your pension will not be increased until your 55th birthday, unless your retirement was due to ill health or you are receiving a dependant’s pension.
The LGPS was ‘contracted out’ of the State Earnings Related Pension Scheme (SERPS) when it commenced on 6 April 1978. As a result Hampshire County Council had to pay members a Guaranteed Minimum Pension (GMP) which is calculated by the National Insurance Contributions Office (NICO). The GMP is broadly equal to what you would have received had you contributed into SERPS. It is not an additional pension but forms part of your Hampshire County Council pension.
If a GMP is payable to you then it will be paid from your State Retirement Age (SPA). The payment of any future increases will be paid between us, the Hampshire Pension Fund, and the State Pension.
Please note that the following paragraphs on re-employment do not apply to your continuing employment if you have retired under your employer’s flexible retirement policy.
If you are re-employed in a non teaching post by any local authority or any other organisation covered by the Local Government Pension Scheme (LGPS) then you must tell your new employer that you are receiving an LGPS pension and write to Pensions Services with details of your new employment (including the new authority you are working for, salary, date of commencement, hours of employment etc).
Your pension will be reduced or suspended during your period of re-employment if the annual rates of pension plus pay in the new employment exceed your annual rate of pay at the time you retired (after allowing for inflation). Any reduction will cease when re-employment ends and your pension will be restored to its former amount with the addition of pensions increase.
If you were awarded Compensatory Added Years (CAY) by your employer when you retired and is paid with your pension or as a separate pension, there may be an abatement or clawback of these added years when you become re-employed. This is dependant on whether the total service exceeds periods permitted. If you do become re-employed again, then you should seek further advise from the pension section concerning the CAY elements
You must tell us if your salary, grade or contractual hours of employment change (other than annual increments or pay awards). Any overpayment of pension caused by your failure to notify us of up to date details of your re-employment will be recovered from subsequent pension payments.
Your new employer will usually use the basic allowance for a single person when assessing your tax liability. This will usually lead to an underpayment of tax. To avoid this, you should ask your new employer to operate code BR (basic rate) and you should notify HM Revenue and Customs of your new employment by sending the employer's name and address, quoting the PAYE reference (the relevant codes are detailed under the payment information tab) by calling 0845 3000 627
HM Revenue and Customs
PAYE & SA Processing
West Hampshire Area
Trinity Bridge House
2 Dearmans Place
Dependants' pensions are payable after you die. The benefits are different for retirements before and after 1 April 2008 and may be affected if you were married after your leaving date.
If you left the scheme before the 1 April 2008 but claim your benefits after this date, the regulations are applied as if you retired on or before 31 March 2008
If you die after retiring on pension, a widow’s, a widower’s, a civil partner’s or a nominated co-habiting partner’s pension and pensions for eligible children are payable.
If you married after your leaving date;
If you die after retiring on pension, a widow’s, a widower’s, a civil partner’s pension and pensions for eligible children are payable. A lump sum death grant may be payable if you die in the first five years on pension.
This will be equal to the pension that her husband was receiving, or would have received had it not been reduced as a result of early retirement or had it not been paid as a lump sum due to exceptional ill health.
If you married after your leaving date;
Children’s pensions are payable for so long as your children remain eligible after your death. An eligible child are children who are at the date of your death:
A child’s pension is calculated either:
Member’s Final Pensionable Pay / 320 x Member’s Reckonable Membership
An equal share of:
Member’s Final Pensionable pay / 160 x Member’s Reckonable Membership
Please note, that a child pension may be reduced if your child is receiving pay whilst in full time training for a trade, profession or vocation.
Then there maybe a death grant payable. This death grant lump sum will be paid to your estate unless you have complete a Death grant 'expression of wish' form. This form gives you an opportunity to nominate a person, persons or organisation (i.e. a charity) to receive the death grant.
The main advantage in expressing a wish is that the payment can be made directly to your chosen beneficiary, without forming part of your estate (i.e. it does not count for inheritance tax purposes).
For these tax advantages to apply, the County Council, as the administering authority for the Hampshire Pension Fund, must retain absolute discretion as to the distribution of the death grant.. For this reason, although the Council will have the greatest regard to your wishes, it is not legally bound by them.
Please notify us in writing of any changes to your address or name. Please quote your National Insurance number on all correspondence
Please notify us in writing of any changes to your address, bank account or building society. We may not be able to apply any new details we receive after the 16th of the month to the next payment, but we will apply them to the one after that. Please quote your National Insurance number on all correspondence, or complete a change of bank or building society details form and return it to Pensions Services
To change your nomination for any death grant payable, please complete a Death Grant Expression of Wish form
To nominate a cohabiting spouse to receive any spouses pension payable, please complete a Nominated Co-habiting partner form
The tax office phone number provided on the April/May payslips was incorrect. The correct telephone number to use is 0845 3000 627, as per the recent pensioner newsletters.
The 2013 Pensioner Newsletters are now available.
Copies of previous newsletters are available from Pensions Services