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your pensions forecast

2013


Introduction Here is your pensions forecast from GMPF, your staff pension scheme. Last time round we introduced a new format with far less notes to keep things clear & simple, and different versions of the stationery depending on when you joined the Scheme. This new format seemed very popular so we have kept to a very similar design this year.

Final salary benefits Your local government pension has always been a final salary pension scheme. This means we add up your total membership, then use this with your final pay, to work out your benefits.

Changes in the pipeline As you may know by now, we are changing to something called a career average scheme from April 2014. We don’t have all the details from the Government yet, but we do know it is definitely going ahead. This gives us a big headache with your pensions forecast this year... Under the current scheme rules we have to base your forecast on the current final salary scheme. This is fine for showing you the current value of your pension benefits, based on your membership up to 31 March 2013 and your current pay. But it also means we have to forecast your future benefits on a final salary basis, when we know that in reality we will all start building up career average benefits from April 2014 - as explained on the facing page. It means that for this year at least, we will still have to show your total membership to age 65, and use this with your current pay to illustrate the value of your retirement benefits. Unfortunately, that’s all the scheme rules allow us to do for this year, so please bear with us at this time.


How will my benefits change under a career average scheme? The way we build up benefits is different under a career average scheme. We will each build up a portion of our pay in benefits, as each year goes by. Those benefits will then be ‘banked’ and rolled forward to the next year, where assuming there’s been some inflation - they will go up in line with prices. From what we can see so far, most members should build up bigger career average benefits then the final salary benefits shown here. That’s because in the new scheme, you will build up a bigger slice of your pay each year - you will build up 1/49th, rather than 1/60th. And also, overtime pay will count towards your benefits in the new scheme. You can find out more about the new scheme on our website, www.gmpf.org.uk by reading our last Pension Power or watching a short video we have made.

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Click on the LGPS 2014 link on our homepage


About you Your name: Your National Insurance number: Your current employer: Your email address: Your phone number: Your date of birth: Your hours of work: Your pay:

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Your membership to 31 March 2013: Your membership to age 65: Membership is one of the key things we use in a final salary scheme to work out your benefits. It includes how long you’ve paid in, plus transfers in from other schemes and any extra membership you have bought.


Your unique membership number if you need to contact us.

If your email or phone number is wrong or blank, please let us know at GMPF by using the contact us page on our website. Please put contact details in the comments box.

This forecast only shows your benefits with this employer.

This is the hours we had on record at 31 March 2013.

This is your pay for the year up to 31 March 2013. We have based it on your pension contributions over the year. Your forecast won’t give a true picture if your pay has been higher or lower than usual over the year, due to things like sickness absence, or maternity leave.

Pay & grading Have you been affected by a pay & grading exercise which has resulted in a reduction in pay? l If you have opted to split your benefits, you will have a separate deferred benefits forecast too.

If you think your pay or hours are wrong, please speak to your employer.

l If you haven’t split your benefits and leave within 10 years of the pay cut, you can ask us to use an ‘earlier better pay’ than the one shown here.


Your final salary benefits

When you retire, you will get both a one off tax free lump sum and a pension - in other words an income for your lifetime...

Your benefits at 31 March 2013 Pension: (per year)

£

Lump sum:

(one off payment)

Your benefits at age 65 Pension: (per year)

£

Lump sum:

(one off payment)

£

£

Here’s how we have worked out your pension... Membership BEFORE April 2008

x

Pay

÷

80 Plus

Membership FROM April 2008

x

Pay

÷

60

And here’s how we have worked out your lump sum... Membership BEFORE April 2008

x

Pay

÷

80

x

3


Benefits at March 2013 This shows what you have built up towards your retirement benefits.

Benefits at age 65

Important choices at retirement We have shown the standard package of benefits here. But if you like, just before you retire, you can choose to give up some pension to boost your lump sum. If you choose this option, every £1 of pension will give you an extra £12 of lump sum. In the same way every £1,000 of

pension you give up will give you an extra £12,000 of lump sum, and so on. There are limits on the size of the tax free lump sum you can take, so this limits how much pension you can give up. We will work this out for you close to retirement, and let you know.

Notes: t er, ecas ing b d s m or me y a f y bin efit e R nl all en o eg l b t. is is ot l ctua eren h t is n r a iff u ed d an d yo ay b an m


Your death benefits

If you die in service, the value of your lump sum life cover at 31 March 2013 is: Lump sum life cover (one off payment):

£

And the value of your dependant’s pension is: Dependant’s pension (per year):

£

Dependants’ pensions The figure shown here is an indication of the amount of pension we would pay to one of the following: Your husband or wife

or

Your civil partner

or

Your nominated cohabiting partner

Partners’ pensions Partner Pensionss

nominatio

n form

Need a Partners Pensions nomination form? Go to www.gmpf.org.uk, call us on 0161 301 7000, or ask your employer.

N 20 OV 12


V

Lump sum life cover

Need a Lump Sum nomination form? Go to www.gmpf.org.uk, call us on 0161 301 7000, or ask your employer.

We also pay pensions to eligible children. The amount varies depending on how many children you have, and whether we are paying pensions to other dependants as well.


Topping up your benefits with AVCs Additional Voluntary Contributions – or AVCs for short – are an easy way of boosting your pension benefits. With AVCs you build up a separate pot from your main GMPF benefits, then when you retire, draw them either as tax free cash, an extra pension or perhaps both. Funds like GMPF offer AVCs through outside organisations – here at GMPF we use Prudential. In fact this year is the 25 year anniversary of us working in partnership with Prudential. And we now have almost 5000 members topping up their benefits in this way.

Efficient & flexible

Did you know.... you can pay AVCs to prov ide extra life cov er too?

AVCs are efficient and flexible… l AVCs are taken straight from your pay, just like your normal pension contributions l as long as you’re a tax payer, you get tax relief too, l there is no minimum or maximum period over which you have to pay AVCs, l you can start / stop / increase / decrease your AVCs at any time, l the earlier you start, the more time you have to build up a reasonable amount. To find out more about AVCs and how they can help you boost your benefits, see our Topping up Benefits booklet, call Prudential directly, or visit their website: Freephone 0800 731 0466 www. pru.co.uk/localgov

Already paying AVCs? If so, your AVCs aren’t included in this forecast, unless you have already transferred them across to count as extra membership.

25

Remember you can now access your AVC account online GMPF & PRUDENTIAL at www.pru.co.uk/localgov - just click on existing YEARS customer, then AVC log in and simply follow the registration details.


Your notes


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 didn’t come to the right address...

Visit our website to find out more or to contact us by email...

www.gmpf.org.uk Follow us on Twitter...

@GMPF_LGPS Call our friendly helpline...

0161 301 7000 Call in and see us...

GMPF, Concord Suite, Manchester Rd, Droylsden, M43 6SF.


Pensions Forecast 2013 (Pre2008)