grapevine Your tax & P60 questions answered Don’t miss the pensioners’ forum this year! Readers’ recipes
APRIL 2013, ISSUE 18
Hello and welcome... to this latest edition of Grapevine, your magazine from GMPF. Grapevine is your magazine, and we are always keen to hear from you. In this issue I especially like the funny story from Mr Hulstone about a calamitous trip to Rackhams in Manchester, and Geoffrey Lord’s fascinating cathedrals story. Once again, packaged with this Grapevine is your combined P60 and payslip, so do please read the information in the pages that immediately follow, as these answer many of the common questions we get asked. As you may remember from last time, we now hold our ever popular Pensioners’ Forum every other year, so the event is back on this October. See page 22 for how you can apply for a free admission ticket. I will be at this year’s forum, and look forward to meeting some of you there. All the best,
Ged Dale Head of 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 P U LE IN R PA ASE A S YS KE AF LIP EP EP & LA P6 CE 0 The bottom half of the . document is your P60 - your
Your P60 & payslip
Packaged with this Grapevine is a very important document - your P60 and payslip. The top half of the summary of tax and pension for document is your payslip forYour April,Aprilthe yearPayslip up to 5 April 2013. You may 2011 and shows details of your pension need to present this, for example if Name YOUR GROSS PENSION (Before deductions) from us beforePension deductions, and the you make a claim for Tax Credits, so Taxable No. amount of tax Nat. weIns.have taken. please keep it in a safe place. No. Your April 2011 Payslip £
YOUR GROSS PENSION (Before deductions)
ip * Please note, any new tax codes Nat. Ins.l 2 No. 013 Paysl N PENSIO Your Apri YOUR GROSSapply from next month.
ions) fore deduct
£ Your April 2013 Payslip
%DEDUCTIONS YOUR Name
CTIONSinformation on Lifetime Allowance please see DUmore For YOUR DE Tax
Your percentage of Standard £ Lifetime Allowance used is:
In other words your pension this month YOUR GROSS PENSIO £ Tax Taxable Pension No. before we take anything off for tax. See * Please note, any new tax codes YOUR NET PENSION (After deductions) 6Ins. forNo. more about tax in general. Nat. apply from next For taxmonth. queries 0845page 3000 627
. Pension No . Nat. Ins. No . Ref E PAY
% ndard tage of Sta Your percen wance used is: please see Allowance w.gmpf.org.uk Lifetime Allo on Lifetime : ww
the enclosed Grapevine Newsletter.
£ HM Revenue & Customs, quoting your National
PAYE Ref. uctions) Insurance number Your percentage of Standard (After ded and PAYE reference 582/M5010. Tax Year Month Taxable Pay PENSION % YOUR NETused is: or visit rmation £ Lifetime Allowance to date Newsletter For more info d Grapevine d For pension queries, 301 7100 the enclose 7 Tax Pai0161 62 00 Pay Tax Code able 45 30information Tax to date see F or08 more onr Lifetime Allowance please nth * ££ e s Mo ie al dat Greater Manchester Pension Fund, Concord Suite, Tax YeaNewsletter.to your Nation Grapevine ting enclosed . For tax quCusertoms, quothe 010 /M5 £ Manchester Road, Droylsden, Tameside, M43 6SF
e& ce 582 HM Revenu ber and PAYE referen £ num 7100 Insurance 0161 301 d Suite, cor n queries, For pensio ester Pension Fund, Con M43 6SF ment date: dotted line pay r e, You nch esid g this Greater Ma ylsden, Tam can tear alon r Road, Dro your P60 you Mancheste r payslip from
For tax queries
YOUR DEDUCTIONS Tax
(After deductions) YOUR NET Your PENSION payment date this month is 1st April 2011
you HM Revenue & Customs, quoting your National to separate 12 - 2013 for 20 catePAYE Insurance number reference 582/M5010. ar Certifiand Ye of . No d . Nat. Ins P60 En
. Pension No
If you3000 need to separate 0845 627your payslip from your P60 you can tear along£this dotted line
If you need
Tax Paid to date
Tax Year Month of Taxable Pay Tax Paid P60 End ofHMRC Year Certificate fortax 2010 - 2011 Your percentage Standard decides your code - it tells us
For pension queries,Tax Co0161 301 7100 de Name Greater Manchester Pension Fund, Concord Suite,
to date Lifetime Allowance used is:
Nat.to Ins.take. No. howFormuch tax If you think your tax more information Allowance see £ on Lifetime £ please Manchester Road, Droylsden, Tameside, M43 6SF the enclosed Grapevine Newsletter or visit: www.gmpf.org.uk Your April 2013 Payslip Pension No. Tax Code code is wrong please contact HMRC. YOUR NET PENSION (A Your payment date this month is 1st April 2011 If you need to separate your payslip from your P60 you can tear along this dotted line deductions) Messages this month Name PAYE Ref. (Before YOURtax GROSS PENSION For queries 0845 3000 627 PREVIOUS EMPLOYMENT HM Revenue & Customs, quoting your National PREVIOUS EMPLOYMENT Taxable Pension No. PAY TAX P60 End of Year Certificate forand 2010 - 2011 Tax Year Month Ta Insurance number PAYE 582/M5010. PAY reference TAX PAYE Ref.
ENT EMPLOYM ENT PREVIOUS EMPLOYM TAX TAX PREVIOUS PAY PAY £
not Nat.DoIns. No. Name This certifica t we have paid to you (less any refunds). PAYE Ref. l need purposes tha me tax deducted by us as you wil your P60 -
This is IFICATEsion for income tax of YEAR CEl RT pen amount of r. It also gives details P60 ENDteOF shows the tota in the yea
minus sign (-). Return if you get one. shown with a Refunds are here should be for your Tax n Figures show R FOR THE YEA SION/PAY TAX TOTAL PEN PAY
e place the total inco cate in a saf, make a claim for Taxthat ck p this certifi urn Please kee e to fill in a Tax Ret It also helps you che . it if you hav renew your claim. al Insurance number to Credits or the correct Nation toms of any ng enue & Cus t a Tax Return. Rev we are usi HM tell sen not d to are require n if you are By law you is not fully taxed, eve t inistered by income tha
Tax Code this * month Messages
THIS PEN PENSION
3 5th April 201 Year Ending ute (GMPF) P60 Substit ut ation abo orm inf re mo losed Look out forns increase in the enc your pensioNewsletter. Grapevine
This is your P60 - Do not throw away
£ £ For pension Nat. Ins. queries, No.
£ 0161 301£7100
Greater Manchester Pension THIS Fund, Concord Suite, FUND £PENSION PENSION TAX Tax Code Manchester Road, Droylsden, Tameside, M43 6SF
YOUR DEDUCTIONS £
Your payment date:
If are youshown needwith to aseparate Refunds minus signyour (-). payslip from your P60 you can tear along this d Figures shownEMPLOYMENT here should be for your Tax Return if you get one. PREVIOUS
PREVIOUS EMPLOYMENT PAY TAX TOTAL PENSION/PAY TAX FOR THE YEAR This certificate shows the total amount of pension for incomePAY PAY £ TAX tax purposes that we have paid to you in the year. It£ also £ £ £ £ gives details of the total income tax deducted by us (less any Name refunds). Your percentage of Standard THIS PENSION FUND Year Ending 5th April 2011 Lifetime Allowance used is:this certificate in a safe% PENSION TAX Please keep place as you will need Pension No. P60 Substitute (GMPF) it if haveAllowance to fill in a please Tax Return, for Tax For more information onyou Lifetime see make a claim £ £ £ Credits or to renew your claim. the enclosed Grapevine Newsletter or visit: www.gmpf.org.uk for Refunds arethis shownLook with aout minus signmore (-). information about Messages month This is your P60By- Do throw away (After deductions) law not you are required to tell HM Revenue & Customs of shown anyPENSION YOUR NET Figures hereyour shouldpensions be for your Tax Return if you get one. increase in the enclosed income that is not fully taxed, even if you are not sent a Tax Grapevine Newsletter. P60 END OF YEAR Return. CERTIFICATE £THE YEAR TOTAL PENSION/PAY FOR
P60 END OF YEAR CERTIFICATE
GMPF is adm
P60have EndtooffillYear Certificate If you in a tax return, for 2012 these are the figures you will need. Nat. Ins. No. Tax Code
PAYE Ref. If someone asks for PREVIO TheFor Lifetime Allowance0845 is a limit 3000on 627the total amount tax queries PREVIO PAY your P60, you can PAY This certificate shows thequoting total amount of pension for income Revenue & Customs, your National GMPF isis administered by PAY TAX anyHM of us can build up in pensions it £1.5 million. £ tax purposes that and we have to you in the year. It also Tax Year Month Taxable PaytearTax Paid Insurance number PAYEpaid reference 582/M5010. it off, keeping£ details of the total income tax deducted by us (less any to date ThisForgives box shows what percentage of this is£used up by to£ date refunds). pension queries, 0161 301 7100 the payslip part for THIS Year Ending £ 5th April 2011 £ Greater Manchester Pension Fund, Concord Suite, Please keeppension. this certificate in a safe place as you will need your GMPF PENSION P60 Substitute (GMPF) yourself. it if you have to fill in a Tax Return, make a claim Manchester Road, Droylsden, Tameside, M43 6SF for Tax £ P60Payslip2011.indd 1
Credits or to renew your claim. Your payment date: Look out for more information about If youtoneed to separate your&payslip from P60 you can tear along thisnot dotted line away is your P60 - Do throw By law you are required tell HM Revenue Customs ofyour anyThis your pensions increase in the enclosed Pensions Grapevine income that is not fully taxed, even if you are not sent a Tax Grapevine Newsletter. Return. P60 END OF YEAR CERTIFICATE
P60 End of Year Certificate for 2012 - 2013 shows the total amount of pension for income tax GMPF is administered byThis certificate
purposes that we have paid to you in the year. It also gives details of
Refunds are shown with Figures 3 shown here shou
TOTAL PENSI PAY
Pensions on the up But how much you will get depends on several factors, which we look at in this article. 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 2.2% - so that’s the increase this year. But please note there are three reasons why you won’t get the full 2.2% this month...
The full increase doesn’t apply until May. That’s because the pensions
increase actually happens several days into April - this year on the 8th. So remember, you won’t get all the increase you’re due until May.
If you paid into the Fund before 6 April 1997 and have now reached 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.
If you retired part way through the year, you won’t be entitled to the full year’s increase - see the chart on the right. So don’t worry about not getting the full 2.2% this month - this is expected. 4
Pensions Grapevine 2013
Here’s what happens if you only started drawing your pension part way through the year... In this case, you will get part of the year’s pensions increase as shown in this table:
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.
Date of retirement 09 April 2012 - 23 April 2012 24 April 2012 - 23 May 2012 24 May 2012 - 23 June 2012 24 June 2012 - 23 July 2012 24 July 2012 - 23 Aug 2012 24 Aug 2012 - 23 Sept 2012 24 Sept 2012 - 23 Oct 2012 24 Oct 2012 - 23 Nov 2012 24 Nov 2012 - 23 Dec 2012 24 Dec 2012 - 23 Jan 2013 24 Jan 2013 - 23 Feb 2013 24 Feb 2013 - 23 Mar 2013
Increase 2.20% 2.02% 1.83% 1.65% 1.47% 1.28% 1.10% 0.92% 0.73% 0.55% 0.37% 0.18%
Please remember, you must tell us if you get another job with any employer who offers membership of the LGPS - whether or not you join the Scheme. In some cases, working for this type of employer will affect your pension.
Pension Pensions Power December Grapevine 2013 2006
Your 2013/14 allowances Each year, we’re all allowed a certain amount of income free of tax - and this is set by our tax allowances. There are various types of allowance, but for most people, the only one which applies is the personal allowance. For the 2013/14 tax year, this has gone up by more than inflation, to £9,440 for the under 65s. As in previous years, there are then higher allowances for many older people. These have changed though and for 2013/14 are as follows: If you were born between 6 April 1938 and 5 April 1948: you will get more than the standard allowance - you will get an age related allowance of £10,500. If you were born before 6 April 1938: you will get an even higher allowance of £10,660. This of course means that only people born before 6 April 1948 can now get the higher age related personal allowance. Whereas in the past, people changed to the higher allowance once they hit one of these milestone birthdays such as 65. 6
Pensions Grapevine 2013
An income limit of £26,100 also applies to these age related allowances - so if your income is more than £26,100, this restricts how much age related allowance you get. There are also other allowances which apply to some members, such as blind person’s allowance and married couple’s allowance. But these don’t apply to many of us, so we’ve not included them here.
Breaking the code
Once the taxman has worked out your allowance, he converts this into a tax code. He tells you your tax code by sending you a notification of coding - see opposite for more. And of course we use it to make sure we take the right amount of tax from you. And finally, the amount of tax you pay also depends on what tax band you fall into. The basic rate is 20%, and as long as your taxable income is below £32,010, that’s the rate you will pay.
Your tax questions answered... Do I have to do anything with the notice of coding I’ve been sent? No, it’s just the taxman’s way of telling you what your tax code is. You don’t have to take any action as we know your tax code too.
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 £9,440 and no adjustments, say for State pension, your code would be 944L.
I think my tax is wrong - what should I do? Please don’t tell us, as we are not allowed to alter it! You need to speak to the taxman Why do I - HMRC - as only they can sort pay tax on it out for you. See details my pension? below. The taxman looks at all kinds of income - pensions, wages, and so on. If it comes to more than the allowance, you pay tax!
0845 3000 627
Open 8am - 8pm, every day
www.hmrc.gov.uk Please quote your National Insurance number and reference 582 M5010
Did you know? Income Tax was first introduced in 1799 to fund the war with France against Napoleon.
Pensions Grapevine 2013
Different paydates We now pay GMPF pensions on two different dates: l T he first traditional banking day of the month for anyone who was already on pension before January 2012, and l T he last traditional banking day of the month, for anyone whose first pension payment was January 2012 or later. There will be no change to your individual paydate – we will keep to whatever point in the month you have always been paid. We just thought you might like to know that some other GMPF pensioners have a different paydate – so this means you may have friends, family or old colleagues who get paid at a different time.
What about weekends and bank holidays? Whether you are paid at the start of the month or the end of the month, we always have to take account of when the traditional paydate falls on a weekend or a bank holiday. You will find a handy cut out & keep calendar for the year showing your own paydates for the next 12 months on the opposite page.
When will you send me a payslip? Remember when you were at work? You probably got a payslip every month, every week, or whenever you were paid. But it’s not the same with your pension... 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 (after deductions) changes by £5 or more. 8
Pensions Grapevine 2013
T W T 5
9 10 11
T W T
MAY 2013 1
JUNE 2013 T W T
T W T
9 10 11 12 13
T W T
T W T
T W T
14 15 16 17 18 19 20
21 22 23 24 25 26 27
9 10 11 12 13 14 15
28 29 30 3 1
16 17 18 19 20 21 22
12 13 14 15 16 17 18
23 24 25 26 27 2 8 29
19 20 21 22 23 24 25
For those who began receiving a pension in 2012 we will pay your pension on the last banking day of the month. If this date falls on a weekend or a bank holiday, then we will pay your pension on the banking day before. Your pay days are marked in orange:
2013/14 Pay day diary dates
Bank holidays & weekends are marked in pale blue:
For anyone already receiving a pension before 2012 we will pay your pension on the first banking day of the month. If this date falls on a weekend or a bank holiday, we will pay your pension on the next banking day. Your pay days are marked in pink:
APRIL 2013 M 9 10 11 12 13
14 15 16 17 18 19 20
26 27 28 29 30 3 1
21 22 23 24 25 26 27
28 29 3 0
10 11 12 13 14 15 16
NOVEMBER 2013 3
9 10 11 12
OCTOBER 2013 2
T W T
AUGUST 2013 M
17 18 19 20 21 22 23
9 10 11 12 13 14
13 14 15 16 17 18 19
20 21 22 23 24 25 26
15 16 17 18 19 20 21
22 23 24 25 26 27 28
24 25 26 27 28 2 9 30
11 12 13 14 15 16 17
27 28 29 30 3 1
18 19 20 21 22 23 24
29 3 0
25 26 27 28 29 3 0 31
T W T
30 3 1
T W T 1
T W T
T W T
9 10 11 12 13 14 15
9 10 11 12 13 14
16 17 18 19 20 21 22
9 10 11 12 13 14 15
16 17 18 19 20 21 22
23 24 25 26 27 28 29
12 13 14 15 16 17 18
23 24 25 26 27 2 8
5 15 16 17 18 19 20 21
19 20 21 22 23 24 25
9 10 11 22 23 24 25 26 27 28
26 27 28 29 30 3 1
29 30 3 1
www.gmpf.org.uk 0161 301 7100 Greater Manchester Pension Fund, Concord Suite, Manchester Road, Droylsden, Tameside, M43 6SF
Remember for any tax queries please ring HMRC on 0845 3000 627
Cut out and keep as a handy reminder.
Possible change to overseas payments If you live overseas then
we have to get your pension to you in your local currency, and we use a transfer service to do this. Currently we use Citibank - and whilst they’ve offered a good service, they charge you £2.74 per transaction. So we are looking into changing to Western Union, with the following benefits...
l No charge for the transaction l They use their own payments network so pensions should be paid quicker - as soon as just one day after the normal UK paydate l As with Citibank, Western Union offer preferential exchange rates We’re currently dotting the ‘i’s and crossing the ‘t’s but expect this to go ahead.
Now wash your hands!
Grapevine reader A Hulstone from Bramhall sent us this funny true story... During a recent visit to Rackhams on Deansgate (or Kendals as I bet many of you still call it!), I went to the gents. Whilst I was adjusting my belt to leave the cubicle, I managed to trap the end of the toilet roll under my belt. By the time I had reached the wash basin, there was 40 feet of toilet paper trailing behind me! So the moral of the story is Wash your hands after going to the toilet! – because if I hadn’t done that, I would have made it all the way down two flights of stairs to meet my partner – no doubt with 500 feet of toilet paper by then attached to me! 10 Pensions Grapevine 2013
“A wonderful inspiring experience”
Readers Travel ideas
Geoffrey Lord wrote in to tell us how he has joined Grapevine’s growing ranks of published authors… I retired from the Greater Manchester Probation and After-Care Service many years ago and now live in Edinburgh. During the past two years, my wife Jean and I have visited every cathedral, minster and active abbey in Britain (a wonderful inspiring experience) and have written a book about the subject called Cathedrals for the Curious. I’ve just had the book published, and it has already received good reviews including this one from the Editor of Britain Express. “I just received a copy of Cathedrals for the Curious, a wonderful new book by Geoffrey Lord, and I thought it deserved mention here. The book is an alphabetical guide to the ‘curiosities’ of British cathedrals, covering architectural details and oddities. If you’ve ever wondered what a reredos is, or found yourself bewildered by overly obtuse guidebooks, this is the book for you”. The publication is available on Amazon at £8.50 with free postage and may be ordered at bookshops. If any reader wishes to contact me or has difficulty in obtaining a copy they could email me: email@example.com
Pensions Grapevine 2013 11
A reminder if you’ve recently retired... There is a limit that applies each year to the amount your pension savings/benefits can increase, and it’s called annual allowance. Your amount of pension savings is tested against the annual allowance over a 12 month period known as the PIP (Pension Input Period). The PIP for your local government pension is 1 April to 31 March, and the limit for this year is £50,000. Annual pension savings are now tested against the annual allowance in the year benefits are taken, so if you have retired during this last PIP (2012/2013) or retired during the 2011/2012 PIP you may need to check if you have exceeded the annual allowance limit. The annual allowance applies to the total amount of your pension savings for all HMRC registered schemes of which you are an active member (that is, ones you still contribute to or ones where your promised benefits are still increasing). For annual allowance purposes, tax-registered pension schemes can include the LGPS, company pensions, personal pensions and all types of AVCs. But they do not include State pensions, or dependants’ pensions (for example widows’ pensions). So if you have pension savings elsewhere you will need to take these savings into consideration as well as your LGPS benefits when doing any annual allowance calculations. You may need to contact other pension administrators directly as we can only assist you regarding your pension savings with us. If you want to know more about the annual allowance please see our website at www.gmpf.org.uk and search for annual allowance in the A-Z facility or alternatively see the HMRC website.
12 Pensions Pensions Grapevine Grapevine 2013 2013 12
Get your GMPF details online.
We now have a free, secure and interactive service called GMPF ONLINE, which allows you to log into a user friendly version of your pension records online.
Here’s what you can do 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 your last six payslips l Check and print your current P60 (proof of income)
To find out more and see a demonstration of GMPF ON LINE
.... watch our tutorial on our main website at www. gmpf.org.uk which offers a visual guide to getting started with GMPF ONLINE, which is ideal for new users. Just click the GMPF ONLINE link on the homepage to find out more.
How do I register for GMPF ONLINE?
Visit our main website at www.gmpf.org.uk and just click the GMPF ONLINE link on the homepage to register for this free service. And once you’re all signed up, use the link to the same page to log in.
Keep slugs at bay! Says Sandra Hughes from Rochdale...
Reader’s Gardening Tip
I own an allotment and now that I am retired, spend a lot of time in it. I have six plots, and grow a variety of vegetables. I have found that if I plant onions in each of them alongside the other veg, it keeps the dreaded slugs at bay.
Pensions Grapevine 2013 13
ccounts Report & A
This summary report is based on information taken from our full Report & Accounts for the year to 31 March 2012. It is becoming a stock phrase in starting my introduction, but these continue to be exceptional times, exceptional for LGPS scheme members, their employers and for us as the administering authority.
The UK economy is experiencing a double dip recession. The reductions being sought in public expenditure have an economic impact, and are also having a material impact on scheme members, employers and GMPF. In spite of this, we have had a steady year, and excellent long term returns.
A steady year and excellent long term returns The value of GMPF has increased by £130 million to £11.1 billion with an investment return of 2.4%. This is a disappointing return in absolute terms but broadly in line with the local authority average of 2.6%. Looking at our longer term performance, over the last 10 years, GMPF’s return has been 6.3% compared to the local authority average of 5.7%. It is this strong investment performance that has supported the funding level. To set this outperformance in context 1% on investment returns now exceeds the total value of employee contributions.
Funding issues The 2010 actuarial valuation was concluded in March 2011 resulting in a good outcome with a funding level at 96.4% as a whole. This was amongst the best of LGPS funds and resulted in employer contribution rates being at the lower end of the range. Since the valuation, investment returns have been a little below the Actuary’s estimate but the main adverse factor for funding levels has been the decline in long term real interest rates as illustrated by index linked gilts giving negative real yields over most durations and the impact this has on valuing liabilities. 14 Pensions Grapevine 2013
Membership changes The number of employee members has reduced significantly this year and this trend is set to continue. Some of the causes include; pressures on employer budgets leading to retirements, voluntary severance and redundancy; members deciding to opt out, often due to personal financial pressures; and an increase in the number of employers at which the scheme is closed to new members. With the help of the Actuary, we are looking at the impact of the membership changes on GMPF as a whole and some individual employer case studies. This type of work will become increasingly important for employers and for GMPF as options are examined to manage volatility and maintain affordability.
Conclusion These are tough times, but GMPF’s excellent long term track record, relatively high funding level and relatively low employer contribution rates put us in a comparatively strong position.
Peter Morris, Director of Pensions
Top 20 equity holdings £273m
Private Equity: Iglo Group Iglo Group is a European food company that specialises in frozen fish, vegetables and poultry. The group operates under three brands: Birds Eye (UK and Ireland), Iglo (Germany, Austria, Belgium, the Netherlands and other countries) and Findus (Italy). Permira backed the acquisition of Iglo from Unilever in 2006, and since then the business has been transformed to deliver robust earnings growth through various initiatives, including new product development and a strengthened management team.
Pensions Grapevine 2013 15
Management arrangements Total Main Fund £10,800 million
Internally managed million Cash & Private Equity Property
£1,341 £791 million £550 million
Legal & General
Property Venture Fund GVA
£19 million The national coffee shop chain, Costa Coffee, has chosen to launch the first Costa Coffee Metropolitan concept outside London at GMPF’s property on Briggate in Leeds. This investment lies close to one of the main entrances to the new Trinity Shopping Centre .
GMPF recently purchased a new 37,000 sq ft Sainsbury’s supermarket. This will form part of a new district centre in Chapelford, Warrington, that will provide 2,000 homes. The district centre will ultimately also have additional local shops, a family pub/restaurant, a primary school and a medical centre. 16 Pensions Grapevine 2013
Benchmark asset allocation Major asset class split PUBLIC EQUITY 62% BONDS/CASH 23.5% PROPERTY 10% ALTERNATIVE INVESTMENTS 4.5%
Bonds/cash split UK GOV’T BONDS 17.9% UK CORPORATE BONDS 24.2% UK INDEX LINKED 11.5% OVERSEAS GOV’T BONDS 11.5% OVERSEAS CORPORATE BONDS 3.0% OVERSEAS INDEX LINKED 5.5% CASH 26.4%
UK/overseas equity split UK EQUITIES 48% OVERSEAS EQUITIES 52%
Overseas equity split NORTH AMERICA 30.6% EUROPE 29.1% JAPAN 17.0% PACIFIC 12.1% EMERGING 11.2%
Pensions Grapevine 2013 17
How we performed
INVESTMENT RETURNS Year ended 31 March 2012
20 15 10 5 0
UK INDEX LINKED
OVERSEAS INDEX LINKED
OVERSEAS CORPORATE BONDS
UK CORPORATE BONDS
OVERSEAS GOV’T FIXED INTEREST
Our total fund value was £11.1 billion, comprising £10.8 billion in the main fund and £0.3 billion of index linked and cash assets that we allocated to a small number of specific employers.
UK GOV’T FIXED INTEREST
-5 UK EQUITIES
And here’s the Fund’s 20 result from the various types of investments - 15 our returns. The graph along side shows our 10 returns from each type 5 of investment, compared with the ‘market’ (in other0 words average returns for that type of investment). -5 And the graph below compares our returns with other local authority pension funds like us.
PENSION FUND RETURNS WM Local Authority Survey Financial years to 31 March 2012 GMPF
Local Authority Average
15 10 Duration (years)
*GMPF’s percentile rank within Local Authority funds 18 Pensions Grapevine 2013
Net assets statement as at 31 March 2011 ÂŁ000 2,544,174 UK equities
2,428,792 Overseas equities
542,325 UK fixed interest corporate bonds
127,497 Overseas fixed interest corporate bonds
343,403 UK fixed interest government bonds
197,774 Overseas fixed interest government bonds
330,082 UK index linked government bonds
48,632 Overseas index linked government bonds
339,811 Investment Property
4,531 Derivative contracts
3,203,877 Pooled investment vehicles 855,545 Cash and deposits 78,569 Other investment assets 11,045,012 Investment assets (155) Derivative contract liabilities (47,218) Other investment liabilities (47,373) Investment liabilities 24,799 Current assets
31 March 2012 ÂŁ000
3,458,916 889,383 222,598 11,363,569 (72) (235,869) (235,941) 31,371
(10,028) Current liabilities
14,771 Net current assets
11,012,410 Net assets of Fund
11,142,716 Pensions Grapevine 2013 19
How the figures add up... Here you will see how much members and employers paid in, compared with how much was paid out in benefits. After other payments in and out, the amount available for investing was ÂŁ129 million.
Transfers in (Individual)
Income from investments
Expenditure Benefits paid out
Investment & administration costs 13 Transfers out
Money available for investment
Accounts Report &
You can view the full version of the Report & Accounts for the year to 31 March 2012 on our website at www.gmpf.org.uk.
20 Pensions Grapevine 2013
Remember, if you are claiming any sort of benefit, for example housing benefit, you need to declare that you draw a pension from us, in case its value has to be taken into account. If you don’t do this, although you might not regard yourself as a criminal, it really is a form of fraud.
Another form of potential fraud is where one of our members dies and we don’t find out, meaning we carry on paying the pension. Normally this is a genuine error, and is easily put right. And you can help prevent this happening in the first place by making sure that whoever is going to look after your affairs after you’ve died lets us know as soon as possible. They can let us know by phone 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 may arise – for example a pension for your husband or wife.
To pick up any overpayments, 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’ve also signed up for a service called Faraday Tracing Bureau, which runs a check each month against the General Register Office’s records. We are then told 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.
For more information about the National Fraud Initiative, and how Tameside takes part in it, please see: www.tameside.gov.uk/fraud
Pensions Grapevine 2013 21
! k c a b It’s
Pensioners’ Forum Old Trafford Cricket Ground
The Point Conference Centre, Old Trafford Cricket Ground, 10:00am to around 3:00pm
Friday 11th October 2013 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.
22 Pensions Grapevine 2013
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 2013. We’ll do the draw in August and send out your ticket shortly after that if you’ve been successful.
Please 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 2013 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 '13 an inclu t forget d t de y our q o uiz e (see ntry p
age 24 ) Pensions Grapevine 2013 23
Win this exclusive GMPF brolly Simply answer the following questions - the answers to which can all be found somewhere in this issue...
What cathedral is pictured on page 11?
In which year was Income Tax first introduced?
What is the service which allows you to log into a user friendly version of your pension records online called?
What level is the annual allowance featured on page12?
The value of GMPF increased to what figure at March 2012?
Which company is number 10 out of our top 20 equity holdings?
Where in Leeds does Costa coffee operate from GMPF owned premises?
What should you plant with vegetables to keep slugs at bay?
Quiz closing d at 30th J e u ne 2013.
Now email your answers, together with your name & daytime phone number to firstname.lastname@example.org. Please mark the subject GVQUIZ. Alternatively, fill in the slip below & mail to GMPF Communications, Concord Suite, Manchester Rd, Droylsden, M43 6SF.
Name & NI number: 24 Pensions Pension Power Grapevine December 2013 2006
Write in & win! The other easy way of getting your hands on one of our exclusive brollies 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 brolly with our thanks. What we’re looking for ...
We’re looking for anything you think Grapevine readers might like - here are some examples:
Tasty rec i
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 2013 25
Spanish Lentils Serves 2
er’s Read pe Reci
Why not try this tasty lentil recipe, from Peter Turner, who was the Chief Press Officer for Manchester City Council for 20 years, and covered everything from the Olympic and Commonwealth Games to the Metrolink tram system. Peter and his wife Pat often make this dish – inspired by the time Pat spent in her younger days in Madrid, when a generous bowlfull cost the equivalent of 161/2p – including bread, wine and a clean tablecloth!
4 tbsps green lentils soaked overnight in cold water with a little bicarbonate of soda 2 tbsps oil 1 onion, chopped 3 cloves garlic, pressed or chopped Chicken stock Tomato purée to taste Ground black pepper
1. Rinse and drain lentils. 2. Heat oil in a saucepan, add onion and garlic and cover, Cook for 10 – 15 mins. 3. Add lentils and cook for a further 5 mins. 4. Add about a cupful of stock, tomato purée and black pepper and cook until lentils are tender. 5. Check liquid and seasoning. 6. Serve with crusty bread.
Ebooks update Librarian Jackie Wetton has written in with a follow up to last year’s article about ebooks. She says... “Many local authority library services such as Stockport and Manchester provide a free ebook service to their members. People must have their own ebook reader (but not a Kindle) and then they can download ebooks free via a computer”. Adds Jackie “It is an ideal way to take several books on holiday and keep the weight down”. 26 Pensions Grapevine 2013
New bank account? Remember, you must tell us if you want your pension paying into a different bank account, as your bank or building society won’t do so! There are 3 simple ways to let us know:
on the link bank change form Click on our website at www.gmpf.org.uk. fill it in, and then post it to us.
us in the good old fashioned Tell way by letter. Or call into our offices in person. Please make sure we find out about bank changes by the 15th of the month. That way, we can make sure the change is done in time for the following payday. If you don’t tell us in time, we may try and make a payment to your old bank account, and find it 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.
Change of address ? Please make sure you let us know if you move house, or if this newsletter didn’t come to the right address. You can do this by phone, fax, email, post or in person at our offices.
For all contactour details please se the back e cover. Pensions Grapevine 2013 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.