Support Staff Pension Guide

Background West Midlands Pension Fund administered by Council since 1986

Wolverhampton

City

200,000 total members / beneficiaries including over 43,000 pensioners around 200 employers in Fund

Can I Join the Scheme?

YES – if you :Have a contract for at least three months Are full time or part time Are not a teacher No age restrictions Automatic entry Membership optional Alternative arrangements:S2P Personal Pensions

How Much Will I Pay? Rates based on salary levels Rates range from 5.5% to 7.5% Based on full time equivalent pay if part time Average rate across the bands is 6.3% Bands are adjusted for inflation each April

How Much Will I Pay? Employees Contribution - tax Relief - national Insurance Savings Employers Contribution - roughly 2/3 of cost of benefits

Pension Bands If your Whole Time Equivalent rate is:

Your rate contribution pay will be:

Up to £12,900

5.5%

More than £12,901 and up to £15,100

5.8%

More than £15,101 and up to £19,400

5.9%

More than £19,401 and up to £32,400

6.5%

More than £32,401 and up to £43,300

6.8%

More than £43,301 and up to £81,100

7.2%

More than £81,100

7.5%

What Do I Get?

Index Linked Pension Plus an automatic tax-free lump sum if you have membership before 01.04.08 A range of ways to retire Normal retirement at age 65 Option to take benefits from age 60 Early retirement possible, with agreement, from age 55

What Do I Get? Ill-health provisions with added extra service linked to future work prospects A death in service lump sum of three times annual pensionable pay Dependants’ benefits for spouses, children, nominated cohabiting partners and registered civil partners Transferability in and out in most cases Index linked frozen benefits if you leave before retirement age

How is my Pension Worked Out? Final salary Scheme Benefits are based on –

Length of Scheme membership Earnings in (usually) last twelve months of membership

Membership after 01.04.08 now based on higher “60ths” formula with no automatic lump sum Membership before 01.04.08 still based on old “80ths” formula with an automatic lump sum

Example calculation Employee 31.03.12

retires

at

age

65

on

has worked 30 years for the City Council final year’s pensionable pay is £15000

Calculation Pension:

26 years x £15000 / 80

= £4875 pa

4 year x £15000 / 60

= £1000 pa

TOTAL

= £5875 pa

Lump Sum: 3 x £5437.50

= £14,625

Working Part-time Where an employee is part-time, the length of service counted towards the pension is scaled down according to the proportion of hours worked, e.g. :5 years at job-share (half-time) = 2 1/2 years pensionable service

Although pension contributions are based on actual, part-time pay, the pensionable pay used when benefits are calculated is the full-time equivalent pay, e.g. :Employee works job-share and is paid ÂŁ7500.00 p.a., pension is based on ÂŁ15,000.

What If I Leave Before Retirement?

A net refund of pension contributions if less than 3 months in the Scheme, or a transfer to another pension scheme, or Deferred pension benefits inflation proofed paid from normal retirement date at the latest

Can I pay more?

Additional Voluntary Contributions (AVC’s) “in-house” or “free-standing” Tax free lump sum

Additional pension value (“ARC’s”) £250 multiples up to £5000

Additional pension contributions qualify for tax relief

Pensions Office

Address & Telephone Numbers Telephone Number:Address:The Pensions Office (0121) 675 7070 PO Box 14345 Birmingham Fax Number:B2 2HZ

(0121) 303 5103

Pension Fund Helpdesk: 0300 11 11 665 West Midlands Pension Fund Website:

www.wmpfonline.com

Any Questions?