Retired Members NEWSLETTER 2018 NEWS UPDATES FOR MEMBERS OF THE LOCAL GOVERNMENT PENSION SCHEME IN WILTSHIRE
Welcome to your 2018 edition of the Newsletter for Retired Members. In this edition, we will provide you with the important annual information regarding your pension benefits including tax and P60 information, the pay dates for the year and of course the pension increase for 2018. We will also provide details of our annual accounts, the new General Data Protection Regulation and other information that we feel may be of interest to you. Give us your feedback! We hope you find the content of this newsletter useful and as always, we welcome and would appreciate any feedback or comments that you feel may help with future editions. Please contact: Denise Robinson Pension Fund Relationship Manager Wiltshire Pension Fund County Hall, Trowbridge, Wiltshire BA14 8JN Telephone: 01225 713505 / Email: pensioncommunications@wiltshire.gov.uk All other queries regarding your pension should be directed to the relevant team. Contact details can be found at the back of this newsletter. You can follow Wiltshire Pension Fund on Twitter @WiltsPension Pay Dates for 2018 Your pension is normally paid on the 25th of each month; however, if this date falls on a weekend or bank holiday, you will receive your pension on the last banking date before the 25th. The table shows the dates your pension will be paid to you in 2018/2019. Wednesday 25th April 2018 Thursday 25th October 2018 Friday 25th May 2018 Friday 23rd November 2018 Monday 25th June 2018 Friday 21st December 2018 Wednesday 25th July 2018 Friday 25th January 2019 Friday 24th August 2018 Monday 25th February 2019 Tuesday 25th September 2018 Monday 25th March 2019 LGPS Pension Increase 2018 LGPS pensions are increased in April, according to the rise in the cost of living over the 12 months to the previous September. Based on the consumer Price Index (CPI) as at September 2017, your LGPS pension will increase by up to 3% this year. The increases applies part way through April and hence your April payment will be a combination of two different annual rates (old and new). You will receive the full increase in the May instalment of your pension. Cover photo: Stourhead Gardens 2 3
Reasons you may not be eligible to receive the full 3% increase: z If you retired part way through the year, you will most likely not be entitled to the full year s increase (for example if you retired on 1st October 2017 you might only receive an increase this year of around 1.5%); z If you are under the age of 55, unless you retired on the grounds of ill-health, or if your deferred pension was brought into payment early due to ill-health, then your pension will not attract pension increases until your 55th birthday; z If you were retired and had reached age 60 (women)/age 65 (men), or state pension age if this is later, before 6 April 2016 then payment of the increases to your pension may be shared between the LGPS and the State see below for some more details on what this means. Pension Increases and GMP The LGPS is contracted out of the State Second Pension (formerly known as SERPS - the State Earnings Related Pension Scheme). This means that If you or your partner (if you are receiving a survivor s pension) were a scheme member between 6 April 1978 and 5 April 1997, part of your LGPS pension will be made up of a Guaranteed Minimum Pension (GMP) (this is the amount that is guaranteed to be paid to you by the LGPS as a result of being contracted out of the State Second Pension). Your GMP is based on your National Insurance Contribution history and is calculated as part of the benefit structure of the Local Government Pension Scheme. From state pension age, your GMP will become liable for payment along with your other Basic State pension(s) therefore, your pensions increase may potentially be paid from two sources, HM Revenue & Customs and the Wiltshire Pension Fund. Under current guidance, for members who reached state pension age after 5th April 2016, Wiltshire Pension Fund will pay the full increase on the GMP (i.e. 3% for this year). Pay and Tax Allowances You will not be sent another payslip during the year unless your net pension payment changes by more than 5 from the previous month. You will also be issued with a P60 certificate by the end of May which will be a summary of your pension and tax details for the 2017/2018 tax year, which ends on 5 April 2018. Please keep the P60 information safe as other organisations may ask to see it as a proof of earnings if you need to make a claim for any benefits such as a tax rebate or state benefits such as Tax Credits. Personal Tax Allowances The pension you receive from Wiltshire Pension Fund is classed as taxable income. However, everyone with earnings up to 123,000 has a Personal Allowance which is tax free. The Government has increased the Personal Allowance for the tax year 2018/2019 to 11,850, which applies to all income up to 100,000. For earnings between 100,000 and 123,000, the personal allowance is phased out so that those earning over 123,000 do not benefit from any Personal Allowance. For those with earnings of up to 100,000, we have shown the marginal tax treatment below: Earnings Tax rate for 2018/2019 0 to 11,850 0% 11,851 to 46,350 20% 46,351 to 100,000 40% For any members earning over 100,000 per year, further information regarding the tax treatment can be found on: https://www.gov.uk This year, you will receive a payslip in March showing your pension paid to you for the 2017/2018 financial year and you will also receive a payslips in April and May which will show any tax changes or effects of pension increase. We are considering making available electronic payslips either later this year or next and to stop sending paper March payslips in future; we will update you with any developments in future communications. 4 5
Death grant in retirement In certain circumstances, a Lump Sum Death Grant payment can be due as a taxfree payment. Any lump sum payable depends on when you left the LGPS, and the recipient of any payment due is at the absolute discretion of Wiltshire Council as the administering authority. You can nominate who you would like to receive any lump sum payment by completing an Expression of Wish form which can be downloaded from our website: www.wiltshirepensionfund.org.uk A lump sum may be payable if you are under the age of 75 at the date of death. How any lump sum would be calculated would depend on the date that you retired from the Scheme. Left before 1st April 2008 A lump sum death grant would have been payable if you left the LGPS before 1st April 2008 and died with less than 5 years pension paid. This period of 5 years has now elapsed. Left between 1st April 2008 and 31st March 2014 A lump sum death grant is payable if you left the Scheme between 1st April 2008 and 31st March 2014 and die under the age of 75 with less than 10 years pension paid (after giving up any pension for a tax-free lump sum). The amount payable is: 10 times your annual pension less the total amount of annual pension already payed to you since retirement. Left after 31st March 2014 A lump sum death grant will be paid if you die and less than 10 years pension has been paid to you and you are under age 75. The amount payable would be based on your membership of the Scheme as follows: z Pre April 2014 membership: 10 times your annual pension in respect of your membership of the Scheme before 1st April 2014 (after giving up any pension for a tax-free cash lump sum), less any pension already paid to you in respect of your pre 1st April 2014 membership. z Post March 2014 membership: 10 times your annual pension in respect of your membership in the Scheme after 31st March 2014 (Prior to giving up any pension for a tax-free lump sum), less any pension already paid to you in respect of your post 31st March 2014 membership and the amount of any tax-free cash lump sum you chose to take by giving up some of the pension you built up after 31st March 2014 when you took your pension benefits at retirement. If you are also an active member of the LGPS when you die If you are also an active member of the LGPS and die in service, the death grant payable would be calculated as above or be the death in service lump sum grant of three times your assumed pensionable pay, whichever is greater. Survivor s pension Current scheme regulations allow a survivor s pension to be paid in the event of your death to a spouse, civil partner, co-habiting partner or to any eligible children. Survivors pensions become effective from the day after death and any pension that may be payable will depend on the membership you had previously built up and when you left the LGPS. Any spouses benefits payable in the event of your death would depend on the following periods of membership: z Widows pensions are based on membership from 6th April 1978 or the date when you joined the scheme if later z Widowers and civil partners are based on membership after 6th April 1988 or the date when you joined the scheme if later Widowers Pension benefits are based on post 5th April 1988 membership only, unless you are a female member who has previously made an election for any period from 1st April 1972 to 5th April 1988 to count. If you die leaving one or more eligible children, your children are entitled to a child s pension. If there is more than one eligible child, the pension will be shared equally among the children. 6 7
State Pension Increase This year s State Pension increase is also linked to inflation as measured by the Consumer Price Index (CPI) at the previous September, this was 3% in September 2017. State Pension increases apply from April 2018. September s inflation data is particularly important to many households as it is used to adjust various benefits and tax thresholds for the following tax year, including the State Pension. How much will the State Pension pay in 2018/19? New state pension: Pensioners entitled to the full new State Pension will see their payments increase from 159.55 per week to 164.34 a week if, as expected, the 3% rise is confirmed. The change means they will be nearly 250 better off by the end of the tax year, with total annual income boosted from 8,296.60 to 8,545.50. Basic state pension: Here s how the State Pension has been uprated over the last seven years. Year State Pension increase April 2011 4.6% Inflation (RPI)* April 2012 5.2% Inflation (CPI) Which part of the triple lock applied? April 2013 2.5% Guaranteed minimum April 2014 2.7% Inflation (CPI) April 2015 2.5% Guaranteed minimum April 2016 2.9% Average earnings April 2017 2.5% Guaranteed minimum *Up until April 2012, RPI was used as the metric for inflationary increases. Those that receive the basic State Pension will also see their weekly payments increase from 122.30 per week to 125.97 per week. The 3% increase means that these pensioners will receive a total of 6,550.39 in 2018/19 up from 6,359.60 in 2017/18 which means they will be 190.79 better off over the course of the year. These members may also be entitled to the state second pension which increases by CPI. How State Pensions are increased The pre-april 2016 Basic State Pension and new State Pension are protected by a triple lock promise, which was introduced in 2011. This means it is guaranteed to rise each year by the highest increase of September CPI inflation, average wage growth or 2.5%. 8 9
The Marriage Allowance Marriage Allowance lets you transfer 10% of the personal allowance to your husband, wife or civil partner if they earn more than you. For the 2018/2019 tax year, you can transfer 1185 of your personal allowance. This will reduce their tax liability. To benefit as a couple, the lower earner needs to have an income of 11,850 or less (in other words they will not be paying tax on any of your earnings). You are unable to transfer more or less than 1,185. Married Couple s Tax Allowance If you are married or in a registered civil partnership and you and/ or your spouse or civil partner were born before 6 April 1935, you can also claim a married couple s allowance (MCA). This allowance is reduced when your income is above the limit of 28,000. This is at a rate of 1 for every 2 above the income limit until it reaches the minimum amount. Any reduction in the married couple s allowance applies after any reduction to the individual s personal allowance. National Insurance Database and Tell Us Once We previously informed you that the Wiltshire Pension Fund entered in a data sharing arrangement with other LGPS funds in England, Wales and Scotland as it is necessary when a member dies for the Fund to know if the individual had other LGPS benefits elsewhere so the correct death benefits are paid. Every member of the LGPS (Active, Deferred or Pensioner) has information held on the National Database. This includes an individual s National Insurance Number, Membership status and 4-digit number specific to the appropriate Pension Fund. The Database will be processed in accordance with the Data Protection Act 1998 and, after 25th May 2018, in accordance with General Data Protection Regulations (see next article). The Membership information will be shared with the Department of Works and Pensions (DWP) to enable the LGPS to be part of the Tell Us Once (TUO). TUO is a service that lets your next of kin report a death to most government organisations in one go. Once the LGPS has received notification of the death, we will contact you for further information. For the 2018-19 tax year, the maximum allowance is 8,695 and the minimum allowance is 3,360. The married couple s allowance is not a tax-free allowance in the same way as the personal allowance. It gives a credit of 10% of the amount of the MCA to set against your income tax liability. For any tax query including Marriage Allowance you can: Telephone 0300 200 3300 Overseas Members should dial +44 135 535 9022 You will need to quote your National Insurance Number and the Wiltshire Pension Fund PAYE reference number (034/W1565) when corresponding with the tax office. 10 11
General Data Protection Regulation (GDPR) (applies from 25th May 2018) GDPR is due to come in to effect on 25th May 2018 and will apply to Personal Data meaning the information pertaining to an individual who can be directly identified. There are a wide range of personal identifiers including name and personal identification number. It covers how we store and share the information. To explain the Fund s approach, we have issued a Privacy Statement below: The Fund may, if it chooses, pass certain details to a third party, if that third party is carrying out an administrative function of the Fund, for example, the Fund s appointed Actuary and Actuarial Consultants. By law we are also required in certain circumstances to share your information with government organisations such as Her Majesty s Revenue and Customs and the Department of Work and Pensions so that they can monitor our performance and ensure that public funds are safeguarded. Wiltshire Council administers the Local Government Pension Scheme (LGPS) known as Wiltshire Pension Fund. Wiltshire Pension Fund ( the Fund ) is responsible for the administration of the Local Government Pension Scheme ( the Scheme ). The service is carried out by Wiltshire Council ( the administering authority ) on behalf of qualifying employers and the Scheme members. The Fund holds information about individuals so that it can provide the services to members and other stakeholders. The Fund needs to only collect the information we need for lawful processing. Under these regulations the Fund has a legal requirement to provide individuals with the following: z Basic information to members on the LGPS on joining or upon request by other parties z Information to early leavers and those retiring from the LGPS z Information on request relating to transfers to and from the LGPS z Issue Annual Benefit Statements to all active and deferred members of the LGPS no later than the 31 August each year (non-applicable to you if you are only a pensioner member). z Information regarding changes to the regulations that govern the LGPS that may affect the calculation of benefits 12 13
Who we may share your information with Wiltshire Pension Fund may share or disclose your information to any of the following recipients as may be necessary to administer the fund in line with statutory obligations and/ or to comply with contractual obligations relating to it: z Service providers, professional advisers and auditors who in certain circumstances will also be data processors. These organisations in respect of the Wiltshire Pension Fund are as follows: Type of service/ adviser Scheme Actuary/ Funds Benefits Consultant Fund AVC Provider(s) Name Hymans Robertson Prudential, Equitable Life, NPI & Clerical Medical Reasons for sharing data To calculate the value of the fund s assets and liabilities and to set employer contribution rates. To facilitate the creation and maintenance of individual member s AVC accounts. Scheme Auditor KPMG To facilitate the statutory duty of the auditing of the fund s Annual Report and Statement of Accounts and internal controls. Overseas Payments Provider LGPS National Insurance Database DWP Tell Us Once Service Western Union All other LGPS Funds Department for Work and Pensions To transmit payments to scheme members with non-uk bank accounts. To enable the Wiltshire Pension Fund to identify if their members have benefits in other LGPS schemes to ensure that appropriate benefits are paid. To enable [Fund/Administering Authority] to be notified of the death of a fund member. z Regulators, the government and law enforcement authorities. This also includes participating in the Cabinet Office s National Fraud Initiative for the purposes of the prevention and detection of fraud against the Fund and organisations within the public sector and the Government Actuary s z Local and foreign courts, tribunals and arbitrators, other judicial committees of enactments of laws. z Insurance companies. z Persons in connection with any transfer of employment of a fund member or members under TUPE that results in a transfer out of this fund to another pension scheme. Retention Periods Under GDPR individuals have the right to have the information held about them deleted or removed from databases maintained by data controllers. The Fund, in its statutory duties under the regulations has determined that it cannot permanently delete a member s record where it has a legal right to retain it. This basis of the Funds right will be set out in its Subject Access request policy. Should a member transfer out of the Fund, the Fund will retain any basic information which is necessary and will endeavour to delete any other information including any documents relating to the member. The basic member details are required to be retained to enable the Fund to comply with statutory and legal obligations such as fraud prevention and GMP reconciliation. What are your rights under GDPR? Under GDPR you have the right to control the information the Fund has about you and how it is used. The right to be informed This is your right to know how your information is used and who it will be shared with. The Fund will publish on its website a Fair Processing Notice which outlines what personal information the Fund will hold, who it will share it with and for how long the information will be held. 14 15
The right of access This is your right to obtain z confirmation that your data is being processed z access to your personal data z access to policies and information held by the Fund about how it uses data This right enables you to verify that the Fund is using your data appropriately as well as providing you access to obtain copies of information we hold about you. You are entitled to see the information we hold about you and can request a copy by emailing or writing to the Fund. We will aim to provide copies of the information held will be provided within 30 days of receiving your request, however should you request be more complex, we may write to you informing you that your request may take longer confirming the date when the information will be provided. The right to rectification You have a right to have your information amended or rectified if you believe it is inaccurate or incomplete. If you believe any information we hold about you to be incorrect, please email pensionenquiries@wilthsire.gov.uk and we will amend the information accordingly. The right to erasure/ right to be forgotten This right allows individuals to request a company or body to delete any or all information they hold about them. However, the right to erasure does not provide an absolute right to be forgotten. Individuals have a right to have personal data erased and to prevent processing in specific circumstances: z Where the personal data is no longer necessary in relation to the purpose for which it was originally collected/processed. z When the individual withdraws consent. z When the individual objects to the processing and there is no overriding legitimate interest for continuing the processing. z The personal data was unlawfully processed (i.e. otherwise in breach of the GDPR). z The personal data has to be erased in order to comply with a legal obligation. The right to erasure/ right to be forgotten This right allows individuals to request a company or body to delete any or all information they hold about them. However, the right to erasure does not provide an absolute right to be forgotten. Individuals have a right to have personal data erased and to prevent processing in specific circumstances: z Where the personal data is no longer necessary in relation to the purpose for which it was originally collected/processed. z When the individual withdraws consent. z When the individual objects to the processing and there is no overriding legitimate interest for continuing the processing. z The personal data was unlawfully processed (i.e. otherwise in breach of the GDPR). z The personal data has to be erased in order to comply with a legal obligation. The right to restrict processing You have a right to limit how the Fund uses your data, including who we share it with. A request for your information to be used for limited purposes will not delete the information we hold about you. The Fund will publish a Fair Processing Notice which will outline how we use your data and who we share it with. Should you wish the Fund to limit how we use your Data please email or write to us with the reasons for your request. The right to data portability This right enables you to obtain copies of the information we hold about you in a format that is easily transferred to either your or another organisation. This is particularly relevant to members who may choose to transfer out of the Fund to another pension provider. The Fund will provide the information we hold to your new 16 17
pension provider in a format that they can use. The transfer would not take place without your consent. The right to object In addition to the right to limit the use of your data, you also have a right to object to the use of your data for certain actions. The Fund may share your information with third parties, for example where we outsource our print to mail documents (payslips, P60 s, benefit statements). Under GDPR you can object to the Fund sharing your data with these third parties. Should you exercise your right to object, it will not limit the information you receive from the Fund, as we may still be required by law to provide you with certain information. In cases such as this the Fund will take appropriate steps to ensure your request is complied with, but that it also fulfils any legal obligation it has to provide you with information or supply services. Children s data The General Data Protection Regulations specifically ensures the protection of children s data as children may be less aware of the risks and consequences associated with the processing of their personal data. Any information held by the Fund which relates to the personal data of a child under 13 is held with the consent of the parent, guardian or the person with parental responsibility. Children aged 13 16 are generally regarded as having the appropriate level of understanding to provide their own consent for the use of their data, provided the Fair Processing Notice has been written in a way they can understand. The Fund s Fair Processing Notice will be reviewed using the Plan English Mark of Quality to ensure it is easily understood by children of 13 years or older. Annual Report and Accounts Membership of the Fund (2017) The Membership of the Fund at the end of year are shown in the graph below: Statement of Accounts Fund Account for the year ending 31 March 2017 Active Members 21,245 Deferred Members 28,087 Pensioner Members 15,523 Contributions and benefits 000 Contributions received 95,901 Individual transfers 3,604 99,905 Benefits payable -78,814 Payments to and on account of leavers -4,808-83,622 Management Expenses -11,181 4,702 Returns on Investments Investment income 10,076 Change in market value of investments 334,031 Net returns on investments 334,107 Net increase in the fund during the year 348,809 Add opening net assets of the funds restated 1,838,661 Closing net assets of the scheme 2,187,470 The full Annual Report can be found on our website: www.wiltshirepensionfund.org.uk 18 19
Contacting us... We hope you have found this newsletter helpful and as always we welcome any feedback, comments or ideas for our future editions. Any feedback on the newsletter or any ideas for future editions can be given as per the contact details on page 2. Queries regarding your pension payment, tax or change of bank details should be directed to the payroll team using the following methods: Telephone: 01225 713606 Email: pensionerspayrollteam@wiltshire.gov.uk By Post: Pensions Payroll, Wiltshire Council, County Hall, Bythesea Road, Trowbridge If you have any other queries regarding your pension you can contact the Pension Benefits Team using the following methods: Telephone: 01225 713613 Email: pensionenquiries@wiltshire.gov.uk By Post: Wiltshire Pension Fund, County Hall, Bythesea Road, Trowbirdge Wiltshire BA14 8JN If you would prefer to visit in person to discuss your pension then you are welcome to contact us to arrange an appointment. Our offices are open Monday to Friday between 8.30am and 5.30pm. You can also follow us on Twitter: @WiltsPension Useful contacts Age UK Offering help and advice for older people. Telephone: 0800 169 6565 www.age.org.uk GOV.UK The simple place to find Government Services and information. www.gov.uk Department of Work and Pensions Offering advice for pensioners www.dwp.gov.uk Pensions Advisory Service Free independent information and guidance on pensions. Telephone: 0845 601 2923 www.pensionsadvisoryservice.org.uk Action Fraud UK s national reporting centre. Telephone: 0300 123 2040 www.actionfraud.police.uk Pension Wise A free and impartial government service that helps you understand the options for your pension pot. www.pensionwise.gov.uk Pension Tracing Service Trace a personal or company pension scheme. The Pension Service, Tyneview Park, Whitley Road, Newcastle Upon Tyne NE98 1BA Telephone: 0845 600 2537 www.gov.uk The Money Advice Service Set up by Government providing unbiased free advice. Holborn Centre, 120 Holborn, London EC1N 2TD Telephone: 0300 500 5000 If you would like this newsletter in large print, Braille or in an alternative format please contact the Pensions Department with your request. WILPALMS Wiltshire Pension Fund - www.wiltshirepensionfund.org.uk