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

Tax code

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.

 

How will my pension be paid?

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 1^st 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 1^st). 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:

 

Scheme Description	Arrears or Advance payroll?	Pay date
LGPS Retirement before 6/4/2012	Advance	First of every month
LGPS Retirement on or after 6/4/2012	Arrears	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.

 

My first payslip is confusing

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.

Your payslip will show you:

• The gross amount (all the pension you are due since your retirement date) on the left hand side
• Any tax deductions on the right hand side
• The net amount payable (the pension you are owed and less any tax due) at the bottom
  

Example payslip

If you would like a copy of your payslip in another format such as Braille, large print or another language please contact pensions services.

  

My tax code doesn't look right?

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:

Scheme description	PAYE reference
LGPS (retirements before 6/4/2012)	663/ZH310
Councillors (retirements before 6/4/2012)	663/ZH310
LGPS (retirements on or after 6/4/2012	120/VA67566
Councillors (retirement on or after 6/4/2012	120VA67566

   

I received less this month than previously

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.

 

When will I recieve my P60?

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.

What is the lifetime allowance on my P60?

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 increase

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:

1st Day of retirement	%	1st Day of retirement	%
23/04/12 and before	2.20
24/04/12 to 23/05/12	2.02	24/10/12 to 23/11/12	0.92
24/05/12 to 23/06/12	1.83	24/11/12 to 23/12/12	0.73
24/06/12 to 23/07/12	1.65	24/12/12 to 23/01/13	0.55
24/07/12 to 23/08/12	1.47	24/01/13 to 23/02/13	0.37
24/08/12 to 23/09/12	1.28	24/02/13 to 23/03/13	0.18
24/09/12 to 23/10/12	1.10	After 23/03/13	Nil

         

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.

HM Treasury website - Pensions increase 2013

  

Guaranteed Minimum Pensions

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.

  

Payment dates

Payment dates for Local Government Pension Scheme which are paid in advance

 

Month	Year	Payment date advance	Period
May	2013	1 May	1
June	2013	31 May	2
July	2013	1 July	3
August	2013	1 August	4
September	2013	30 August	5
October	2013	1 October	6
November	2013	1 November	7
December	2013	29 November	8
January	2014	31 December	9
February	2014	31 January	10
March	2014	28 February	11
April	2014	1 April	12

 

Payment Dates for Local Government Pension Schemes which are paid in arrears

 

Month	Year	Payment date arrears	Period
April	2013	30 April	1
May	2013	31 May	2
June	2013	28 June	3
July	2013	31 July	4
August	2013	30 August	5
September	2013	30 September	6
October	2013	31 October	7
November	2013	29 November	8
December	2013	31 December	9
January	2014	31 January	10
February	2014	28 February	11
March	2014	31 March	12

Working after retirement

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.

When and who to inform

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).

 

Effect on your pension

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

 

Further reviews

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.

 

Income tax

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 3000627.

HM Revenue and Customs
PAYE & SA Processing
West Hampshire Area
Trinity Bridge House
2 Dearmans Place
Salford, Manchester
M3 5BS

If I die in retirement, what happens to my pension?

Dependants' pensions are payable after you die. The benefits are different for retirements before and after 1 April 2008.

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

 

For retirements on or after 1 April 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 form pension and pensions for eligible children are payable.

• A widow’s or widower’s pension is equal to 1/160^th of your final pay times the total membership your pension is based on unless you marry after retirement in which case it could be less.
  
• A civil partner’s and nominated partner’s pension is equal to 1/160^th of your final pay times your membership in the scheme after 5 April 1988.
  
• A death grant is payable if less than 10 years pension has been paid and you are under age 75 at the date of death, in which case the balance of 10 years of pension is paid as a lump sum.

 

For retirements on or before 31 March 2008:

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.

• A widow will receive a short-term pension for the three months after her husband's death, or six months if one or more eligible dependent children are in her care.
  

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.

• After that she will receive a long-term pension generally equal to half her short-term pension.
  
• A widower or civil partner will receive a short and long-term pension in the same way as a widow. However, the pension will be based on their wife's total membership after March 1972 only or civil partner’s total membership after April 1988 only.
  
• The lump sum death grant is the amount by which the annual pension multiplied by five exceeds the pension paid to the date of death.
  

Children's pensions

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:

• Under 18 years old and are wholly or mainly dependant on you.
  
• Over 18 years old but are under the age of 23 years old, are dependant on you and are in full time education or undertaking vocational training (although a dependant child who commences full-time education or vocational training after the date of your death may still be treated as an eligible child up to age 23)
  

• In some cases, a dependant child of any age who is disabled may be classed as an eligible child.
  
• In all cases an eligible child must be born before or within a year of your death.

    

A child’s pension is calculated either: If payable to one child Member’s Final Pensionable Pay / 320 x Member’s Reckonable Membership If payable to two or more children 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.

 

How long are dependants pensions payable from?

• A widow’s / widower’s / civil partner’s pension is payable for life
  
• A child’s pension is payable to age the age of 18. If the child is then in full time education / vocational training it is payable until that child leaves the education, completes training or attains age 23
  
• A pension payable to a child who is disabled within the meaning of the Disability Discrimination Act 1995 is normally payable for life

 

Death Grant lump sum

If you:

• Retired on or after 01 April 2008 and die within 10 years of your retirement
• Retire before 01 April 2008 and die within 5 years of your retirement date

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.

• 

  Change of address and name

  Please notify us in writing of any changes to your address or name. Please quote your National Insurance number on all correspondence

   

• 

  Change of bank details

  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

   

• 

  Change of beneficiaries

  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

   

April/May Payslips

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.

 

Pensioner Newsletters

The 2013 Pensioner Newsletters are now available.

• For members that retired before 6 April 2013 - Advanced payroll newsletter
• For members that retired from 6 April 2013 - Arrears payroll newsletter

Copies of previous newsletters are available from Pensions Services