New Starters - A guide to your pension

Transcription

1 Autumn 2016 New Starters - A guide to your pension David Williams (EAPF) & Martyn Slaughter (Capita)

2 Today s Session What we ll be covering: Benefits of joining How much does it cost? How we work it out Family protection Increasing your contributions When can I take my pension Keeping you informed Resources to find out more What do you need to do now?

3 Benefits of joining? A secure pension A tax free lump sum when you retire Your employer also pays in a contribution each month Life cover and pensions for your dependants Ill health cover

4 How much does it cost? The amount you ll pay will depend on your pensionable earnings. These are split into contribution bands and are reviewed on 1 April every year. If your pay changes throughout the year, your Fund employer may review your contribution rate. The pay bands and contribution rates will be reviewed from time to time. Band Main Section contribution rate 1/49 th accrual 50:50 Section contribution rate 1/98 th accrual Pensionable pay range from 1 April 2016 based on the assessed pensionable pay you receive Band 1 5.5% 2.75% Up to 13,600 Band 2 5.8% 2.9% 13,601-21,200 Band 3 6.5% 3.25% 21,201-34,400 Band 4 6.8% 3.4% 34,401-43,500 Band 5 8.5% 4.25% 43,501-60,700 Band 6 9.9% 4.95% 60,701-86,000 Band % 5.25% 86, ,200 Band % 5.7% 101, ,800 Band % 6.25% 151,801 or more

5 How is my pension worked out? Pensionable Pay for Scheme Year 1/ 49 = Annual Pension Pensionable Pay Divided by Annual pension 30, Pensionable Pay for Scheme Year 2 / 49 = Annual Pension + Revalued Annual Pension for Year 1 Pensionable Pay Divided by Annual pension Revalue previous year Previous year revalued pension Total in end of year 2 30, X 2% = 624 1,242 This continues to retirement The revaluation rate is set by HM Treasury

6 Protection for ill health If you have to retire because of ill health the LGPS provides benefits for you, regardless of your age. These benefits are unreduced and may be enhanced depending on how severe your condition is. There are 3 levels of ill health that could be awarded: Tier 1- Pension built to date + 100% of prospective service to NPA Tier 2- Pension built to date + 25% of prospective service to NPA Tier 3- Pension built to date No enhancement with an 18 month review

7 Protection for family The Scheme covers your loved ones in the event of your death, with pensions for your dependants and a life cover lump sum. Dependants pensions are payable to: Spouse (including same sex marriages) Civil Partners Cohabiting Partners - Leavers after 31 March 2008 only Children up to age 23 in full time education or vocational training Children of any age who re unable to work due to permanent incapacity or impairment.

8 Protection for family Life Cover (lump sum death grant) Nominate someone to receive a lump sum in the event of your death Life cover payments are 3 times your assumed pensionable pay (APP) Complete an Expression of Wish form and you can choose to share the amount between more than one person or even an organisation It s not legally binding, but the EAPF reserves the right to use its discretion but will take your wishes into account. Forms are available at

9 Paying more in to get more out

10 When can I take my pension?

11 When can I take my pension? Since April 2014, your normal pension age (NPA) in the Scheme is the same as your state pension age (SPA). This is the age that you can take all the benefits you have built up without any reductions You don t have to wait until your NPA to retire. You can choose to leave anywhere between age 55 to 75 To find out your state pension age (SPA):

12 Keeping you informed Annual Pension Statements To help you keep track of how much you ve built in the Scheme, we ll send you an annual pension statement every year. It tells you: Your current pension at 31 March each year An estimate of your potential benefits up to your NPA An estimate of death and survivor benefits Check: Pay Whom you have nominated for benefits You can also register online to view your statements at

13 What do you need to do now? Register to EAPF online and keep up to date with your pension Check your annual pension statements are accurate Most importantly.start saving for your future!

14 Registering for EAPF online For anyone who haven t registered for EAPF Online, it s easy! All you need to do is go to our pension website at Click Register Click Log in to your pension

15 Registering for EAPF online Enter personal details Repeat security code here

16 Resources to find out more Visit Publications available to download online: - Explanatory videos - Scheme guide - Understanding my CARE pension - Starting an additional voluntary contribution - Topping up my LGPS pension

17 Any questions?