How are pensions increased?
Local government pensions are generally increased in line with the Consumer Prices Index (CPI). The annual increase from 9th April 2012 is 5.2%.
When are pensions paid?
We pay pensions monthly on two different dates:
- The first traditional banking day of the month for anyone who was already on pension before January 2012, (If the 1st of the month is on a Saturday, for example, we will usually pay on the Monday. If the Monday is a bank holiday we will pay on the Tuesday.)
- The last traditional banking day of the month, for anyone whose first pension payment was January 2012 or later. (If the last day of the month is a Saturday, or bank holiday for example, we will pay on the Friday before.)
How is the April payment calculated?
The monthly payment of a pension for April will typically be the combination of two different annual rates. The first of these is the rate that applies from the 1st of the month to the 8th, the second is at the increased rate that applies from the 9th to the 30th.
Which pensions do you increase?
We increase all pensions from the 9th April except where pensioners are both under 55 and pensions arose on the grounds of:
- redundancy or in the interests of efficiency of the service
- incapacity, where the pensioner had previously been a deferred beneficiary and isn’t capable of any regular full-time employment.
A pension will also remain unchanged if we are paying only the guaranteed minimum pension (GMP) with no post 5 April 1988 element. Consequently we increase the large majority of pensions each April.
When will you know the new annual amounts applying from the April pensions increase?
By the 25th of April. As we now do two payrolls we won’t know until both payrolls have been completed. We don’t however calculate increases individually as we pay over 89,000 pensions. The calculations are also quite involved when GMPs are being applied. There is therefore no point in asking us before the 25th April what the regular monthly increase is going to be for an individual, as we simply won’t know until then. If you sent us a faxed or written enquiry seeking pension details we will stockpile it until we can answer it. We won’t send interim acknowledgements.
Do you tell pensioners of the new amounts?
Yes: at the end of March (for those on pension before January 2012) and in April (for anyone whose first pension payment was January 2012 or later).We send each pensioner a payslip and combined P60 document that gives full details of the April payment.
Is the pension paid for life?
Yes: and in certain cases we will continue to pay a pension after death to any dependants including husbands and wives/civil partners/ nominated cohabiting partners, plus any eligible dependent children.
Why have you not updated my new tax code on the P60?
New tax codes only apply from the May payment because we pay your April pension before the 6th of the month so this is your month 12 payment; May is the first payment of the new tax year when new codes apply.
I do not agree with the tax code I have been given, who should I contact?
Telephone HMRC on 0845 3000 627. Please have your national insurance number and the fund’s PAYE reference (582/M5010) to hand and they will assess your code accordingly.
Why is my April payment not 1/12th of the new gross annual amount of pension shown on the P60?
Please see ‘How is the April payment calculated?’ above.
I have not received the full Pensions Increase on my annual pension as quoted on the P60 document, why?
If there is a message on the P60 document stating that you have a Guaranteed Minimum Pension then part of your pension increase is paid through your state pension. We only pay a maximum of 3% on the GMP element of your pension.
I have received a non-taxable amount, what is this?
This is a supplementary increase on your lump sum payment due to your pension coming into payment during the PI review period.