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Don't forget that you will only receive a monthly pay slip if your NET PAY changes by more than £1 from the previous month. You will of course still receive your pension every month. We are happy to provide written confirmation of your pension if you need it e.g. for benefit claims. You will still receive a P60 although this will be sent as a separate document and not attached to your payslip. PLEASE KEEP THIS SAFE.
The Local Government pension pay dates for the coming year (2008/09).
| April |
18 |
October |
20 |
| May |
19 |
November |
18 |
| June |
18 |
December |
18 |
| July |
18 |
January |
19 |
| August |
18 |
February |
18 |
| September |
18 |
March |
18 |
The annual pension increase for this year is 3.9%, which is payable from 7th April 2008. The rate of increase is set each year by the Government by reference to the increase in the Retail Price Index over the 12 months to September.
You will receive this increase if you are:
- Aged 55 years or over, or
- Receiving a widow's, widower's or child's pension, or
- Retired on ill health grounds
If you do not fall into one of these groups, your pension will not attract this increase until your 55th birthday. Once you reach age 55, we will write to you to tell you the new rate of pension payable.
The full increase is only payable if your pension began on or before the 22 April 2007. If your pension began after this date a smaller pro-rata increase will apply as shown in the table below:-
| Pensions Beginning |
% |
Pensions Beginning |
% |
| On or before 22 April 2007 |
3.90 |
23 September to 22 October 2007 |
1.95 |
| 23 April to 22 May 2007 |
3.58 |
23 October to 22 November 2007 |
1.63 |
| 23 May to 22 June 2007 |
3.25 |
23 November to 22 December 2007 |
1.30 |
| 23 June to 22 July 2007 |
2.93 |
23 December to 22 January 2008 |
0.98 |
| 23 July to 22 August 2007 |
2.60 |
23 January to 22 February 2008 |
0.65 |
| 23 August to 22 September 2007 |
2.28 |
23 February to 22 March 2008 |
0.33 |
Increases Prior to your State Pension Age (SPA)
Up to your SPA all of your pension increase will be paid by the Cheshire Pension Fund.
Increases after your State Pension Age (SPA)
When you attain your SPA, all of your pension will increase each April, however, part of the increase will be paid by the Cheshire Pension Fund and the remainder by the State. This is in respect of the Guaranteed Minimum Pension (GMP) earned prior to 1988 whilst you were a member of Cheshire Pension Fund.
What is a Guaranteed Minimum Pension (GMP)?
In 1978 the Government introduced the State Earnings Related Pension Scheme (SERPS). Since 1978 members of the Cheshire Pension Fund have been 'contracted out' of SERPS. This means that we have agreed to pay you a Guaranteed Minimum Pension at your state pension age which is broadly equivalent to the amount you would have received from SERPS.
You may have a GMP once you reach SPA if you were:
- A member of the Local Government Pension Scheme (LGPS) with pensionable service between 6 April 1978 and 5 April 1997.
- A widow, widower, or a civil registered partner of a member who had pension service between 6 April 1978 and 5 April 1997.
- If your pensionable service spans April 1988 your GMP will be made up of Pre and Post 88 values.
How will I know the amount of GMP?
The GMP is calculated by the Department for Work and Pensions (DWP) and will be notified to you with your State Pension entitlement. The DWP will provide an annual update and inform Cheshire Pension Fund of the amount.
How is the Guaranteed Minimum Pension (GMP) increased when I reach State Retirement Age?
- When you reach your state retirement age the State is responsible for paying the increase on the part of your GMP which you built up prior to 6 April 1988. For 2008 pensions increase is 3.9%.
- The Cheshire Pension Fund will increase the post 6 April 1988 GMP pension to a maximum of 3% per annum. As the 2008 pension increase is more than 3% the State will increase this part of your pension by a further 0.9%. Therefore ensuring your overall pension is increased at 3.9%.
NB. It is important to note that all of your pension has been increased, however part has been paid by the State and the remainder by the Cheshire Pension Fund.
Dependants' pension
Married spouse
Under current Pension Regulations spouse’s pensions are only paid to a married spouse in the event of the death of a Scheme Member. Please check with your employer about the level of widower’s pension if you have service before 6 April 1988. Spouse’s benefits are paid as follows:
Civil Partnerships
Under the Civil Partnerships Act 2004 same sex couples can now obtain legal recognition of their relationship by notifying their intension to register a Civil Partnership. From 5th December 2005, Civil Partnerships have been recognised in the LGPS Regulations.
The main impact of this change on the LGPS will be to extend the provision of the spouse's pensions / and or pensions on divorce settlements currently applicable to married Scheme members, to include members who have a registered Civil Partnership.
The regulations now provide survivor benefits for same sex partners based on membership earned in the scheme after 5th April 1988.
Cohabiting Partners
The ‘New Scheme’ from 1 April 2008 now provides for a survivor’s pension for a nominated cohabiting partner. This extends the existing provisions for husbands, wives, civil partners and children. Partners’ pensions can be for dependent partners in both opposite and same sex relationships. To be eligible to nominate a cohabiting partner you must have paid into the LGPS on or after 1 April 2008. The pension will be based on any membership accrued from 6 April 1988 onwards.
Death after retirement grant
If you die within 5 years of retiring, your estate will receive a lump sum payment equal to 5 times your annual pension less any pension already paid.
Death after retirement pension
- For the first three months after your death your spouse will receive a pension at the same rate as your entitlement.
- After that they will receive a pension of half of your entitlement for the rest of their life.
Children’s pensions
Your children may also be eligible to receive a pension after you die. For the purposes of the pension Scheme, a child is someone who, at the time of your death is:
- Under the age of 18
- Over the age of 18 but in continuous full time education
- Dependant on you.
A long-term pension will be paid for as long as the child continues to meet the above conditions. The rate of pension depends on how many children you have and whether your spouse is receiving a long-term pension.
Pensions sharing on divorce
Pension Regulations have, since 1995, contained provisions whereby maintenance (known as earmarking) can be paid from a member’s pension to their ex-spouse under a Court direction.
From 1 December 2000 new “Pensions Sharing” Regulations came into force with respect to divorce or annulment (but not judicial separation) proceedings which commenced on or after that date.
The provisions are not compulsory. They can provide an alternative to the current earmarking arrangements. The Regulations provide that both parties are given information about the value of the member’s pension and the Courts can take this into account in any financial settlement. If the Courts so direct, the settlement may include a Pension Sharing Order. Such Orders entitle the ex-spouse to a Pension Credit and the Scheme member’s pension will be reduced by an equivalent debit.
The Pension Credit will, in effect, give the ex-spouse part of the member’s pension based on the member’s service at the date of the Court Order. In the LGPS the Pension Credit can be taken as a pension benefit at age 65, or can be transferred to another pension scheme.
Pension credits can be transferred out of, but not into the LGPS. The Pensions Section is obliged to provide information when requested by solicitors acting for either party in divorce or annulment proceedings. Charges are levied for the provision of this information.
The County Council is under a duty to protect the public funds it administers. From time to time it may use information provided to it for the prevention and detection of fraud and share it with other bodies administering public funds solely for these purposes. The County Council is required to participate in an anti-fraud initiative operated by the Audit Commission’s appointed auditors under section 6 of the Audit Commission Act 1998. For this initiative, we are providing details of pensions in payment to the auditors so that they can compare these with information provided by other public bodies. This comparison helps us to ensure that no pensions are paid to persons who are deceased or to those no longer entitled to them. The information is also used by other public bodies e.g. those administering housing benefit, to ensure that occupational pension income is being declared. While the object of the exercise is the detection of fraud, any underpayments to pensioners are detected and then corrected.
From 1st April 2006 the Cheshire Pension Fund agreed to remove its abatement policy from the Scheme (except for ill health retirees).
This change brought the Scheme in line with the Government's Policy, which encourages employees to receive their pension and remain in employment (subject to their employers consent). In addition the policy will support Scheme Employers as a way of assisting flexible retirement and helping them retain older workers.
Retirements – Post 1 April 2007
The pension in payment is unreduced so no action is required from members.
Retirements - Pre April 2007
If a member’s pension is subject to abatement the pension should be increased to the full unabated amount with effect from 1 April 2006.
NB The removal of abatement does not apply to those pensioners who have previously received compensatory added years and who are subsequently re-employed. (The regulations require the abatement to continue)
Ill – Health Retirements
Pension abatement will continue to apply to pensioners in receipt of an LGPS ill-health retirement pension and who were subsequently re-employed with a Scheme employer, such as a local council or FE college.
Contacting Us
If you are a pensioner who has retired and been awarded either Compensatory Added Years (CAY) or an ill heath pension, you will need to contact the Pensions Section with details of your new Local Government employment. We will confirm to you in writing whether or not your pension will be affected.
You are under an obligation to notify the Pensions Section if you do recommence employment. |