grapevine Your tax & P60 questions answered
New pensions choices but not for us Readersâ€™ stories
APRIL 2015, ISSUE 20
Hello and welcome... to this latest edition of Grapevine, your magazine from GMPF. And a special welcome to you if this is the first copy of Grapevine you have received, either because you have only started drawing your pension fairly recently, or because you are one of our Probation colleagues whose pension arrangements have now moved across to Greater Manchester Pension Fund. As you will see, Grapevine has a mix of stories - our regular reminders about things that affect us all, like tax, but also readers’ stories too. And we feel it’s that input from you our readers, that really makes Grapevine your magazine - so do keep those stories rolling in. This time I especially enjoyed Alan Frost’s funny story on page 23, about his time ‘on the buses’. As always, in the same envelope as this Grapevine is your P60 and payslip. Every year we get hundreds of people who throw them away with the envelope, then have to phone us for a replacement. So do please remember to keep yours in a safe place. Also, the helpful notes on the facing page should answer many of the common questions we get asked. That’s all from me - I hope you enjoy this issue. All the best,
Ged Dale, Assistant Executive Director, Pensions Administration.
Greater Manchester Pension Fund, Concord Suite, Manchester Road, Droylsden, M43 6SF 0161 301 7100 www.gmpf.org.uk
Greater Manchester Pension Fund is administered by Tameside MBC and is part of the Local Government Pension Scheme
YO PL U EA IN R PA SE A S YS KEE AF LIP P EP & LA P6 CE 0
Your P60 & payslip Packaged with this Grapevine is a very important document - your P60 and payslip. The top half of the document is your payslip for April, and shows details of your pension from us before deductions, and the amount of tax we have taken.
r April 2011 Payslip YOUR GROSS PENSION (Before deductions) Taxable
The bottom half of the document is your P60 - your summary of tax and pension for the year up to 5 April 2015. You may need to present this, for example if you make a claim for Tax Credits, so please make sure you keep it!
Your A Your April 2011 Payslip pril 20 1 Name
n No. NatYOUR . Ins. N GROSS o. PAYE Re f.
PENSION (Before deductions) YOUR G Taxable
Your April 2013 Payslip £ Nat. Ins. No. Tax Co
Your pe Lifetim rcentage of St e Allow an ance us dard For mo ed is: re inf
ueries Your April 2013 Payslip 0300 20£
HM Reve nu Insuranc e & Custom s, qu e numbe r and PA oting your Na tio YE refe nsion qu rence 58 nal (Before Greate 2/M5010 eries, Your percentage of Standard rM . Manch anchester Pens 0161 301 71 ester Ro Lifetime Allowance used is: ad, Droy ion Fund, Conc 00 lsden, Ta or meside, d Suite, For more information on Lifetime Allowance please see M43 6S F If you
Tax Code * Pension No.
YOURDEDUCTIONS GROSS PENSION YOUR % Taxable Tax
the enclosed Grapevine Newsletter.
45 3000 627
YOUR NETNo. PENSION (After deductions) Nat. Ins.
deductions) Tax Year
Taxabl e to datePay
yslip paymen m your deductions) t date: P6YOUR P60 you PENSIONfro(After 0 EndNET can tea r along of Year Name this dotte For tax£ queries 0845 3000 d line 627 C er£tifica £ PAYE Ref. HM Revenue & Customs, quoting your National Pensio te for 2 n No. 014 - 2 Tax Month ofInsurance Taxablenumber Pay andTax Paid YourYear percentage Standard PAYE reference 582/M5010. 015 Tax Year Month Taxable Tax Paid Messa Nat.Pay YOUR In ges DEDUCTIONS to is: date to date % this mon Lifetime Allowance used Tax Code to date s. No. to date th * For pension queries, 0161 301 7100 Final Ta x Code £ For more information on Lifetime Allowance please see Tax £Greater Manchester£Pension Fund, Concord Suite, £ £ PAYE Re the enclosed Grapevine Newsletter or visit: www.gmpf.org.uk f. Manchester Road, Droylsden, Tameside, M43 6SF (After deductions) PREVIO YOUR NET PENSION Your payment date this month is 1st April 2011 Your payment date this month is 1st April US EM 2011 PAPR PL Y EVIO
HMRC decides your tax code - it tells us how much tax to take. If you think your ncord Suite, de, M43 6SF tax code is wrong please contact HMRC. £ line ate your payslip from your P60 you can tear along this dotted line you need to627 separate your payslip from your P60 you can tear along this dotted For tax queries 0845If 3000 £ £
Tax Pa to dateid
OYMEN PLOYM ENTT TAX TAX
is is yo £ ur P60 HM Revenue & Customs, quoting your National - Do no TH Your percentage of Standard t destro PENSIO IS PENSION P60 EN y N Paid FUND Tax Month Taxable Pay Tax DYear P60 End of Certificate for 2010 2011 Insurance number and PAYE reference 582/M5010. O £ % This Year F Y ce EA rtific Lifetime Allowance used is: R
of Year Certificate for 2010 - 2011
orma sed Grap tion on Lifeti me All evine Ne wsletter owance ple ase or visit: www.gm see pf.org.u k
apply from next month.
ce please see
efore de du
r National e 582/M5010.
£ YOUR DEDUCTIONS PAYE Ref. YOUR GROSS PENSION (Before deductions) In Name other words your pension this month YOUR DEDUCTIONS Tax Taxable Pension No.take anything Tax Code before we * off for tax. See Tax % Nat. 6 Ins.for No.more*about page tax in general. Please note, any new tax codesFor ta xq
ax codes .
TAX purposes ate shows th CERTIFIC Refunds e £ are the total that we have total amount ATE Figures sho shown with a pa of income minu wn here tax dedu id to you in the pension for inc should be s sign (-). om ye cted by for your us (less ar. It also gives e tax Tax Return if TOTAL any refu details of you get on rt PENSIO ha nds). e. N/PAY or to re ve to fill in a ificate in a sa PAY FOR TH fe (After deductions) E YEAR £ using thnew your cla tax return, m place as yo im. uw ake e correc TAX t Natio It also helps a claim for ill need it By law yo ta £ yo na x u l Insura cr nce nu check that w edits income u are required Ye ar Ending e are mber. that is to tell HM 5th Ap t fully ta Revenu P60 Su If you need to separate your payslip from your P60noyou can xed, tear e & this dotted line bstitute ril 2015 even if along you are Customs of an PREVIOUS EMPLOYMENT (GMPF) y Look ou not sent a Tax Re PREVIOUS t for m PREVIOUS EMPLOYMENT turn. your pe EMPLOYMENT ore info TAX PAY ns rm
Forpension more information on Lifetime Allowance please see For queries, 0161 301 7100 Name
Nat. Ins. No.
Nat. Ins. No. Newsletter or visit: www.gmpf.org.uk if ease keep th the enclosed Grapevine is ce you Greater Manchester Pension Fund, Concord Suite, Pl
YOUR NET PENSION Tax Code The Lifetime Allowance is a limit on the Yourtotal payment date: PensionTameside, No. Manchester Road, Droylsden, M43 6SF Tax Code
0845 3000 627 For tax queries Messages this month
HM Revenue & Customs, quoting your National PAYE Ref. amount any of us can build up in pensions Tax Year Month Taxable Pay Tax Paid Insurance number and PAYE reference 582/M5010. PREVIOUS EMPLOYMENT to to date PAYdate TAX PAY TAX - itFor is pension £1.25P60 million for the 2014/15 tax year. for 2012 £ £ PAY End TAX of Year 2013 queries, 0161 301 7100Certificate £ £ £ £ £ £ Greater Concord Suite, of this is £Manchester £percentage This box showsPension whatFund, THIS PENSION FUND Nat. Ins. No. Name Manchester Road, Droylsden, Tameside, M43 6SF PENSION TAX THIS PENSION FUND used up byPENSION your GMPF pension. Your payment date: TAX GMPF is
ation ab Grapev ions increa out se ine New sletter. in the enclos ed
£ this dotted line £ Tax If you need to separate your payslip from your P60 you canCode tear along £ P60 - Do not throw away Refunds are shown with a minus sign (-). This is your
Messages month Refundsthis are shown with a minus sign (-). P60beEND OF CERTIFICATE Figures shown here should for your Tax YEAR Return if you get one.
Figures shown here should be for your Tax Return if you get one.
P60ThisEnd of Year Certificate for 2012 - PENSION/PAY 2013 FOR THE YEAR TOTAL certificate shows the total amount of pension for income PREVIOUS EMPLOYMENT
If someone asks for your P60, you tear it off, keeping the payslip can part for yourself. Year Ending 5th April 2011
If you have to fill in a tax return, these are the figures you will need.
PREVIOUSPAY EMPLOYMENT TAX ATE PAY TAX tax purposesFOR thatTHE we YEAR have paid to you in the year. It also TOTAL PENSION/PAY PAY TAX Nat. Ins. No. Name nt of pension for income £ £ gives details of the total income tax deducted by us (less any PAY TAX £ £ u in the year. It also refunds). £ £ £ No. £ Year Ending 5th April 2011 educted by us (less any Pension Please keep this certificate in a safe place as youTax will Code need P60 Substitute (GMPF) THIS PENSION FUND it if you have to fill in a Tax Return, make a claim for Tax
Credits or to renew your claim. TAX e place as you will need Messages thisP60 month PAYE PENSION Ref. Substitute (GMPF) Look out for more information about make a claim for Tax By law you are required to tell HM Revenue & Customs £ of any PREVIOUS £ increase EMPLOYMENT Pensions Grapevine 2015 your pensions in the enclosed PREVIOUS EMPLOYMENT income that is not fully taxed, even if you are not sent a Tax PAY TAX Grapevine Newsletter. more Refunds are shown This is Look your out P60for - Do notinformation throw awayabout Return. PAY with a minus sign (-). TAX venue & Customs of any Figures shown here should be for your Tax Return if you get one. your pensions increase in the enclosed £ by £ GMPF is administered you are not sent a Tax £ £
Grapevine Newsletter. P60 END OF YEAR CERTIFICATE
Your pensions increase this year... To help protect your pension against rising prices, each year we increase it in line with inflation. This article looks at the increase this time, and explains why the full increase won’t apply until May... If you are due an increase, your pension from us is increased in line with the Government’s preferred rate of inflation - the consumer prices index, or CPI. This is measured from September to September, and the rate for the year ending last September was 1.2% - so that’s the increase this year.
But please note: nobody will get the full 1.2% this month. Here are the reasons why...
Pensions Grapevine 2015
full increase doesn’t apply until May. That’s because the pensions The increase actually happens several days into April - this year on the 6th. So remember, you won’t get all the increase you’re due until May. you paid into the scheme before 6 April 1997 and have now Ifreached State pension age you probably have what’s called a GMP - a guaranteed minimum pension. This isn’t a separate pension but rather a minimum amount your pension from us has to at least equal. GMPs also attract pensions increase but some or all of this pensions increase is paid along with your State pension. So part of the increase is paid with your GMPF pension and part is paid with your State pension. retired part way through the year, you won’t be entitled Iftoyou the full year’s increase - see the chart below. So as you can see, nobody will get the full 1.2% this month.
Important note if you only started drawing your pension for the first time part way through the year... In this case, you will get part of the year’s pensions increase as shown in the table...
Date of retirement
Are there any other reasons the increase might not apply? Yes, if you are under 55, your pension won’t start increasing until your 55th birthday, unless you retired on the grounds of ill health.
07 April 2014 - 21 April 2014
22 April 2014 - 21 May 2014
22 May 2014 - 21 June 2014
22 June 2014 - 21 July 2014
22 July 2014 - 21 Aug 2014
22 Aug 2014 - 21 Sept 2014
22 Sept 2014 - 21 Oct 2014
22 Oct 2014 - 21 Nov 2014
22 Nov 2014 - 21 Dec 2014
22 Dec 2014 - 21 Jan 2015
22 Jan 2015 - 21 Feb 2015
22 Feb 2015 - 21 Mar 2015
Pension Pensions Power December Grapevine 2015 2006
Piecing together Most people are allowed to receive a certain amount of income in a tax year before tax is payable. This is known as the personal allowance. For the new tax year, the ordinary allowance goes up to £10,600 as shown here... Personal allowance changes for the new tax year Tax allowances Personal allowance (born after 5 April 1948) Personal allowance (born before 6 April 1948) Personal allowance (born before 6 April 1938)
2014/15 £10,000 £10,500 £10,660
2015/16 £10,600 £10,600 £10,660
If you receive earnings or draw a pension from a scheme like ours, this income is taxed through the Pay As You Earn (PAYE) system. Since we pay pensions monthly, this means you effectively get 1/12 of the annual allowance each month. This means that allowances are spread equally over the year rather than you starting to pay tax only once earnings/pensions exceed your allowance.
Age related allowances
There are higher allowances for people born before a certain date. However, the Government is gradually winding these down, meaning they will disappear once the ‘ordinary’ personal allowance catches up with them. If you were born between 6 April 1938 and 5 April 1948: There is no longer any extra allowance for people in this age group... Whilst this allowance is higher than last year, it has only got up to £10,600, making it exactly the same as the ordinary personal allowance. If you were born before 6 April 1938: There is still a small advantage for people in this age group... Whilst this allowance hasn’t gone up from last year, it it still more than the ordinary personal allowance, and stands at £10,660.
New marriage allowance
If your income is less than £10,600 in the 2015 to 2016 tax year, you may be able to reduce your husband, wife or civil partner’s tax by transferring some of your Personal Allowance to them. This won’t come in until later this year, but you can register your interest with the HMRC by visiting: www.gov.uk/marriage-allowance 6
Pensions Grapevine 2015
Example based on ordinary allowance Bernard gets the ordinary personal allowance of £10,600, so that means he can receive around £883 a month tax free. Bernard doesn’t draw his State pension yet, but he gets a pension from ourselves of £600, and he has a part time job which brings in £400 a month...
Personal allowance: £883 Difference:
So he will pay tax on the £117 difference – in his case at 20% - so that works out at around £23 a month in tax.
Your questions answered... tice of What is the no en sent? coding I’ve be you s way of telling n’ a xm ta e th st It’s ju need to de is. You don’t what your tax co other than keeping ith it, do anything w records. yo it for ur own
What if I think m y tax code is wrong? Please don’t tell us , as we cannot alter it! Only the HM RC can do this, so you need to spea k to them as shown below.
What does my tax code mean? In simple cases, you just take your tax free income for the year and knock off the last digit. So if you have an allowance of £10,600 and no adjustments, say for State pension, your code would be 1060L.
0300 200 3300
Open 8am - 8pm, Mon-Fri, and 8am - 4pm Saturdays. Text phone number for hearing & speech impaired members: 0300 200 3319
Please quote your National Insurance number and reference 582 M5010
Pensions Grapevine 2015
Letâ€™s talk paydates & payslips To take care of a group of pensioners who have moved under the wing of GMPF, we now pay GMPF pensions on THREE different dates...
We pay on the first traditional banking day of the month for... l Anyone who was already on pension with GMPF before January 2012, and Probation service pensioners where this is l the same as or close to their old paydate. We pay on the 16th of the month for... robation service pensioners, where lP neither of the other two dates are close to their old paydate.
We pay on the last traditional banking day of the month for... l Anyone whose first pension payment with GMPF was January 2012 or later, and l Probation service pensioners where this is the same as or close to their old paydate.
What happens where one of these pay dates falls on a weekend or bank holiday? If you are paid at the start of the month: in this case, we will pay you on the next banking day. For example in August, the 1st falls on a Saturday, so we will pay you on Monday 3 August. If you are paid in the middle of the month: in this case, we will pay you on the previous banking day. For example in August, the 16th falls on a Sunday, so we will pay you on Friday 14 August. If you are paid at the end of the month: in this case, we will pay you on the previous banking day. For example in October, the 31st falls on a Saturday, so we will pay you on Friday 30th. 8
Pensions Grapevine 2015
Will you send me a payslip each time I’m paid? Remember generally we won’t send you a payslip each time you are paid. But here are the times when we will send you one... We always send out a payslip when someone first retires, then, you will always get one for April (which doubles as a P60) and then one for May, with this being the first month that includes in full, the new rate of pensions increase. Apart from that we only produce a payslip when your monthly pension changes by £5 or more after deductions.
Remem MAY is the ber fi that inclu rst month des in full the new rate of pension s increase.
Spellchecker required! Thanks to Sheila Gallagher for sending in this funny story about her time as an NVQ Coordinator with a local council. She tells us... A new administrative assistant started work with us and was unfamiliar with the language used. In a report about the Level 2 care qualification, instead of typing internal verifiers she put infernal vampires. It was so funny we laughed for ages about it. Shortly after that she was typing a job reference for me about a young man called Chris. She ended the reference by typing “I am sure that Christ will be an excellent addition to your team.” She soon settled onto the team, and she became so good, we didn’t get any more funny typing errors. But it was good fun while it lasted!
Reader’s story Pensions Grapevine 2015
Watch your limits...
This is just a reminder about two key limits set by the HMRC which can affect pensions - the annual allowance and the lifetime allowance. As a pensioner, you are unlikely to be affected by these, but just in case you are, here are the headline figures for this year.
This is a limit on how much your pension can grow each year without penalty, so it’s only really an issue for people who are still paying in to a pension, and whose pension pot grows significantly, for example following a promotion. For 2015/16, annual allowance stays at the same level of £40,000.
This is a limit on the amount of pension savings you can build up over your life that benefits from tax relief. Your pension savings with GMPF will have been tested by us against the lifetime allowance when you first started to draw them. So as long as all of your pension benefits are already in payment, and you have no intention of starting a new pension, you do not need to worry about the lifetime allowance. For 2015/16, lifetime allowance stays the same at £1.25 million.
A reminder about our overseas payments.... We can pay pensions all over the world - everywhere from Albania to Zanzibar. If you live overseas and get a pension from us, remember we now pay your pension to you by Western Union. This brings several benefits:
10 Pensions Grapevine 2015
l There is no charge for the transaction (which there was before) l They use their own payments network so pensions should normally be paid around one day after the normal UK paydate l There are preferential exchange rates.
New look online service finally clicks into place...
Last time we explained how we were hoping to launch a new version of our online service, allowing you to do things like printing P60s, viewing past payments, and so on. Unfortunately we have had all kinds of teething problems with it, and this has caused a long delay. We’re really sorry about that, but we‘re pleased to say that things are now moving ahead with the new service... What’s the new service called? The new service is called Mypension.
What you can do with
When will it go live?
We’ve been piloting it with a number of pensioners like you, and it should be live (again just for pensioner members) by the end of May this year.
How do I register for Mypension?
If you want to use the new service, you will need to register. As the new service goes live, we will add links and more information to our website - at www.gmpf.org.uk. You might want to sign up for our web updates service. to find out when this happens.
What do I do if I was a user of the old online service? You will still need to register as if you were a new user, as your old log in details will not work. We will write to you with an activation code so you can do this.
l See a simplified version of your pension records l Tell us about any changes in your home address, telephone number or email address l Contact us with a direct query l Check and print previous payslips l Check and print your current P60 (proof of income)
Pensions Grapevine 2015 11
Pensioners’ Forum Old Trafford Cricket Ground
The Point Conference Centre, Old Trafford Cricket Ground, 10:00am to around 3:00pm
Friday 9th October 2015
We are pleased to let you know that our pensioners’ forum is back, and will once again will be held at Old Trafford Cricket Ground.
What’s in store
If you’ve been before, you’ll know exactly the type of thing to expect…. The day will start with refreshments in our hospitality and exhibition area, where you can pick the brains of the experts we’ve laid on from various organisations.
12 Pensions Grapevine 2015
Then later we move through to the adjacent conference room for presentations, largely about you and your pension. Then we break for lunch, followed by a second chance to ‘grill the experts’.
Although not right in the city centre, the venue has excellent public transport links. Several buses stop nearby, and it has its own Metrolink tram stop. For those of you who prefer to drive, there’s a huge on site free car park.
How to apply
Tickets are free of charge, but are limited, so we’ll be drawing names out of a hat. To be in with a chance, simply fill in the slip below and send it to us by 30 June 2015. We’ll do the draw in August and send out your ticket shortly after that if you’ve been successful.
think of your fellow pensioners and only apply for a ticket if you intend to use it.
Please enter me in the draw for a ticket for the 2015 Pensioners’ Forum Your full name: Your Pension Number: See enclosed payslip if you don’t know your pension number
Signed: Please place in an envelope and mail to:
Communications Team, Greater Manchester Pension Fund, Concord Suite, Manchester Road, Droylsden, Tameside, M43 6SF.
Retu to us rn 30 JU by N don’ E '15 an inclu t forget d to de y ou entr r quiz (see y p
age 2013 13 Pensions Grapevine 242015 Pensions Grapevine 13 )
New found freedom with pensions - or is it?
Over the coming months youâ€™ll see a lot of coverage in the papers and on TV about changes to the law surrounding pensions, giving people more freedom on how to draw their pensions. But most of the changes donâ€™t have any impact at all on schemes like ours, as this article explains.
14 Pensions Grapevine 2015
The government will soon be bringing in some of the biggest changes to the pensions industry in nearly a century. The shake up is being called Freedom & Choice in Pensions, and plans to give people far more choice about how to access their pension pots.
in one go, then blow it all on a fancy car or a world cruise, leaving themselves with no money to live on in retirement.
Until now, people in personal pensions and even some types of staff pension schemes had to take the pension savings they had built up, and turn them into a pension by buying an annuity. So people in schemes like this faced two uncertainties... first, how well their pot would grow as it was invested, and second, what level of pension the annuity would create.
Generally no, for two reasons... First, these changes are targetted mainly at people in defined contribution schemes. Your local government pension scheme is not this type of scheme, instead it is a defined benefit scheme. With our type of scheme, as a member you automatically built up a range of pension benefits - benefits which were based on your pay. So the ‘weak link’ of having to buy an annuity simply didn’t apply to your main benefits in the Local Government scheme. The second reason the changes won’t affect your Local Government pension is that the point at which you could choose various options has passed now that you are drawing your pension. So even if the changes did apply to Local Government, it would be almost impossible to unravel the pensions paid to people like you. So although the media are going to get increasingly excited by these new options, remember, there is no impact on the pension you draw from us.
Schemes like this are known as defined contribution schemes (DC schemes for short). And the changes you may hear about are largely aimed at giving more freedom and choice to people in this type of scheme, by removing the requirement to buy an annuity. People will still be able to buy an annuity if they want, but if they prefer, they will be able to draw all their pension savings as one ‘cash’ amount. That sounds great, but only the first 25% will be tax free, with the rest being taxed. And there is the obvious risk that somebody might take all their pension savings
So does any of this affect my local government pension?
Pensions Grapevine 2015 15
AL RY I EC A P S M M SU
Report & Accounts
Introduction Schemes like ours are called defined benefit schemes – this means members pay in a defined amount in contributions, and the members and/or their dependants get a defined amount in benefits. It’s a really safe type of scheme to be in, because it means nobody’s benefits can be adversely affected by a downturn in stock markets, and so on. So how do we make sure we can achieve this? Of course members and employers are paying into the ‘pot’ to fund the pension scheme, and we also invest that pot in all manner of investments to help it grow. Every three years there’s then a ‘healthcheck’ on the pension fund, by an expert called an actuary, to make sure there’s enough in the pot. If there isn’t, employers have to pay more in. If you would like to know a little more about our finances, and the types of things we invest in, here you will find a summary of our full annual report. To see the full annual report, please go to: www.gmpf.org.uk/2014/publications/annualreport.htm
Summary of our finances MONEY IN
Contributions from members and employers
£408 million MONEY IN
Earnings from investments
£259 million MONEY IN
Growth in value of assets
VALUE OF THE FUND Opening balance: 31 March 2013
£12.59 billion Closing balance: 31 March 2014
£13.28 billion Your fund has grown by:
Pensions, lump sums, transfers out & administration costs
Pensions Grapevine 2015 17
Jargon buster Here are some of the terms used in this summary report, and what they mean: Equity holdings: equities simply means stocks and shares in companies, both in the UK and overseas. You will see a list of our top 20 equity holdings – in other words the companies we hold most stocks & shares in. Examples includes Shell and Aviva.
Benchmark asset allocation: This shows how we split our investments - for example the first pie chart shows that over 60% of our investments are in equities, with the remainder made up of things like property, bonds, and alternative investments.
How we performed: This section has two graphs. Pension Fund Returns shows how well we performed over a number of years, compared to other local authority pension funds. Investment returns shows how well we performed last year in each investment class.
Top 20 equity holdings £269 million
18 Pensions Grapevine 2015
Management arrangements Internally managed
Total Main Fund £12,986 million
Cash & Private Equity
Legal & General £2,794 million
Property Venture Fund GVA
Benchmark asset allocation Major asset class split PUBLIC EQUITY 62%
Bonds/cash split UK GOV’T BONDS 17.9%
UK CORPORATE BONDS 24.2%
UK INDEX LINKED 11.5%
ALTERNATIVE INVESTMENTS 4.5%
OVERSEAS GOV’T BONDS 11.5% OVERSEAS CORPORATE BONDS 3.0% OVERSEAS INDEX LINKED 5.5% CASH 26.4%
UK/overseas equity split
Overseas equity split
UK EQUITIES 40%
NORTH AMERICA 32.5%
OVERSEAS EQUITIES 60%
EUROPE 27.5% PACIFIC 10.0% EMERGING 15.0%
Pensions Grapevine 2015 19
How we performed This graph compares our returns with other local authority pension funds.
PENSION FUND RETURNS WM Local Authority Survey Financial years to 31 March 2014
Local Authority Average
12 12 9
15 10 Duration (years)
*GMPF’s rank within Local Authority funds
And this shows our returns from each type of investment, compared with the ‘market’ (in other words average returns for that type of investment).
INVESTMENT RETURNS Year ended 31 March 2014
2020 1515 1010 55 00 -5-5 -10 -10
20 Pensions Grapevine 2015
OVERSEAS INDEX LINKED
UK INDEX LINKED
OVERSEAS CORPORATE BONDS
UK CORPORATE BONDS
OVERSEAS GOV’T FIXED INTEREST
UK GOV’T FIXED INTEREST
A selection of our investments We invest in a broad selection of investment classes, including: l Equities In other words stocks & shares in UK and overseas companies l Property Owning retail units, factory units etc, and renting them out to tenants l Private Backing business ventures such as new start ups or management buyouts equity
An example from our equities portfolio...
Ford Motor Company The Ford Mustang is the newest member of a very exclusive club – vehicles in continuous production by Ford for 50 years. It sits alongside Ford’s global brands including the Fiesta, the iconic Transit van, and the Focus – the best selling nameplate in the world. And if you thought that self-driving cars were the stuff of science fiction, think again... engineers at Ford Europe have been working on a car that is able to park itself on demand - even if the driver is outside the vehicle!
An example from our private equity portfolio... Dr. Martens
GMPF was one of the backers behind the Permira funds’ £300 million acquisition of iconic footwear brand Dr. Martens. The deal adds to the Permira funds’ portfolio of fashion businesses which already includes Hugo Boss and New Look. Dr. Martens is a global brand with a rich and diverse heritage. The company’s deep-rooted links with music, sub-cultures and self expression have kept it at the forefront of youth culture for over 50 years. With headquarters on the site of the original factory in Northamptonshire, Dr.Martens footwear is sold in 63 countries worldwide, with key markets in the US, Asia and Europe. You can download a PDF version of the full Report & Accounts for the year to 31 March 2014 from our website, www.gmpf.org.uk.
Pensions Grapevine 2015 21
No hiding place Here’s a friendly reminder that if you are claiming any sort of benefit, for example, housing benefit, you must tell them that you draw a pension from us, in case its value has to be taken into account. If you fail to do this, the authorities will treat it as a form of fraud. Another form of potential fraud is where one of our members dies and whoever is looking after their affairs fails to tell us, meaning we carry on paying the pension when we shouldn’t. Normally this is a genuine error, and quite understandable at the time of someone’s death. But do please help us avoid cases like this by discussing the issue with whoever is going to look after your affairs after your death. Please tell them that they should let us know as soon as possible when you die, and they can do this simply by phoning us on 0161 301 7100. That way we can stop your pension before any wrong payments have been made, and of course put into place any new pensions which are due, such as a pension for a dependant.
National Fraud Inititiative To pick up any overpayments - whether accidental or otherwise - we take part in the National Fraud Initiative, which cross checks the records from pension schemes like ours with the Department for Work & Pensions’ database. This picks up cases of fraudulent claims which are then investigated further, sometimes in conjunction with the Police. We also use a service called Faraday Tracing Bureau, which runs a check each month against the General Register Office’s records. They then pass on to us the names of members who may have passed away without us being aware. We can then carry out further checks, including sending a Life Certificate, which asks the member to contact us if they are still alive. So if you get one of these from us, please don’t be offended... it really is in your interest to fill it in and send it back - otherwise we may stop your pension!
For more information about the National Fraud Initiative, and how Tameside takes part in it, please see: www.tameside.gov.uk/fraud 22 Pensions Grapevine 2015
H T E N O B US ES
We’ve had a great story from Alan Frost who now lives in Conway, telling us about his time ‘on the buses’...
Alan worked for Manchester Transport, and worked out of the Altrincham depot as a bus driver. Alan drove a traditional style double decker – the type with the driver in an enclosed cab at the front, an open platform at the back for the passengers to get on and off, and a conductor or conductress to take the fares. Alan tells us: “These buses had to be parked ‘nose in’ each night, so at the start of the shift, I would reverse the bus back out, ably guided by the conductress”. He went on to tell us: “One particular morning, I reversed the bus out, waited a second for my conductress to hop on, then drove off on the ‘dry run’ as we called it – the first run of the day to pick up passengers at the first bus stop on the route.” “Half way along this dry run I was amazed to see a motorcyclist zooming up behind me, flashing his lights and sounding his horn, to attract my attention. He then proceeded to overtake me, and I just fell about laughing as I saw my trusty conductress riding pillion, clinging on for dear life, and waving frantically! Unbeknown to me, having guided me out of the depot, she had nipped to the loo, and literally missed the bus! I laugh about it to this day!”
Pensions Grapevine 2015 23
It’s TV Simply enter this TV themed prize quiz for a chance to win one of our smart little document bags. First correct entry drawn out of the hat wins.
Name the actress who played John Steed’s assistant Cathy Gale in The Avengers.
2 3 4
Name the fictional seaside town in which Dad’s Army was set.
What was the name of Steptoe and Son’s horse?
What “number” was Patrick McGoohan given in The Prisioner? Who was the original host of This is Your Life?
You can email your answers, together with your name & daytime phone no. to: firstname.lastname@example.org. Please mark the subject GVQUIZ. Or, fill in the slip What car was “hand built by robots” below & post to GMPF Communications, in the 1979 TV ad? Concord Suite, Manchester Rd, What is the name of the tower block Droylsden, M43 6SF. where Del Boy & Rodney lived?
What was the first programme broadcast on Channel 4 when it was launched in 1982?
Name & daytime phone no. 24 Pensions Pension Power Grapevine December 2015 2006
Closing date 30th J une 20 15.
Write in & win! The other easy way of getting your hands on one of our exclusive document bags is to send in a story we can use in Grapevine. If we can fit it in next year’s issue, we’ll get in touch with you early next year, and send you your prize with our thanks. What we’re looking for ...
We’re looking for anything you think Grapevine readers might like - here are some examples:
Gardening hints & tips Anecdotes from your work days
Please contact Malcolm or Simon by letter or email:
Communications Team, Pensions Office, Concord Suite, Manchester Rd, Droylsden, Tameside, M43 6SF. email@example.com
Pensions Grapevine 2015 25
An amazing coincidence Thanks to Molly Jenkins from Liverpool for writing in with her heartwarming story... oking nd I was lo out a w o id w nd out ab red elderly I am a reti when I fou , rk tion. o w ty hari e organisa ri u C e ri for some c a inally M run by the pend time with term g a scheme to s somethin olunteers es. “ That’s m o They get v h d if n w o their t wondere ill people in ought to myself, bu ld. Not at all I th oo I could do” uld be considered to o w being 81 I up. with o I signed ere paired w e w it seems, s g in ain ga in depth tr ours visitin After some pent many happy h the hospice dIs nd in clients, an er home, a h in th o b , I noticed lovely lady hilst at the hospice I got .W visitors, so she visited who never had any a h ve dy lly lovely to e a re s t’ “I another la . ll her as we must hav chatting to said… “My husband ding he r 59th wed t u o n e e b a visitor.” s e all abou would hav en told me th sent you, it e had h S ”. y a sixties. He ry tod is a h rs e in iv d n ie n a Well ad d re station. nd, who h fi a y b s rb u a h e r n e h ad ta fireman a husband h a y s M a ! e d c e n rk e wo cid ext azing coin e station n c m li a o p n a e t th a wh r! an at each othe a policem worked as turns out they knew it door – and
According to the Marie Curie website, they have all kinds of volunteering opportunities. As well as helpers like Molly, they are looking for people who can help with fundraising, work in the offices, and so on. To find out more about volunteering, you can call them on 0845 305 2191.
You must let us know if you’re moving house, or if this newsletter didn’t come to the right address. You can do this by phone, email, post or in person at our offices. Please note: if we get undelivered mail sent back to us, we will assume you are ‘no longer around’ and will stop your pension! 26 Pensions Grapevine 2015
New bank account? Please make sure you tell us if you want your pension paying into a different bank account as your bank or building society won’t do!
Go to www.gmpf.org.uk, click on the bank change form link, fill it in, and then post it to us,
Send us a signed letter, Or call into our offices in person.
To allow enough time to make change, please let us have the new details three weeks before your next payday. If you don’t tell us in time, we may try and make a payment to your old bank account which has already been closed. If this happens, your old bank will return the payment to us, and we will forward it to your new account.
If you live abroad you will need a different bank change form please go to the Retiring Abroad page on our website and select your country from the list to download the correct form.
Going back to work? If you get another job with any employer who offers membership of the LGPS then you must tell us - whether or not you join the Scheme again. In some cases, working for this type of employer will affect your pension.
Pensions Grapevine 2015 27
Can we help you? Here are the ways you can find out more or get in touch with us. If you do contact us, please quote your National Insurance number. Please let us know if you move house or if this didnâ€™t come to the right address... Visit our website to find out more or to contact us by email:
Or call our friendly helpline on:
0161 301 7100
Or call in at our offices:
GMPF, Concord Suite, Manchester Rd, Droylsden, M43 6SF.
Issue 20 of the Pensions Grapevine publication for retired GMPF members.