Annual Report and Accounts 2006

The scheme at a glance

Eligibility for membership

Virtually all employees of relevant employers (including temporary and casual workers) aged under 65 can join the Scheme, other than those covered by other statutory schemes (for example teachers, police officers, firefighters).

Membership is automatic for all employees other than casual workers, employees of admitted employers, and those who have opted out in the past.

Employee contributions

The standard employee contribution rate is 6% of pay unless a person who was in the Scheme before 1 April 1998 retains the right to contribute at 5%.

Benefits on retirement

Normally consist of a pension calculated as 1/80th of the final year’s pay for each year of membership plus a lump sum of three times the pension. Actual membership may be enhanced automatically in cases of ill health retirement. Employers may choose to augment membership for members leaving (other than on ill health grounds) from age 50 onwards.

In some cases, it is possible to exchange the lump sum for a bigger pension, or the pension for a bigger lump sum.

Age of retirement

Normal retirement date for new Scheme members is age 65. Members who transferred in to the Scheme on 1 April 1998 have a normal retirement date of between age 60 and age 65.

• Pension benefits are payable at any age if retirement results from ill health.
  
  
• Members may retire with full accrued benefits from age 50 onwards if their retirement is on redundancy or efficiency grounds.
  
  
• Members who have not reached normal retirement date and to whom ill health or redundancy/efficiency retirement does not apply may elect from age 50 onwards to draw their accrued benefits. Employer consent is required for elections made before age 60. Benefits may be actuarially reduced if the total of age and membership is less than 85.
  
  
• Benefits must be taken no later than age 75.

Benefits on death in service

A lump sum death grant is payable, normally equivalent to two years’ pay. Tameside has absolute discretion over the distribution of this lump sum among the deceased’s family, dependants, personal representatives or nominated beneficiaries.

Pensions may also be payable to the member’s widow, widower, registered civil partner and/or dependent children.

Extra benefits

The Scheme offers several ways for members to improve benefits:

• Payment of additional periodical payments to increase membership
  
  
• A money purchase AVC scheme which is operated in conjunction with the Prudential offering pension and life insurance options

Benefits on death after retirement

In certain limited circumstances, a lump sum death grant may be payable. If so, Tameside has absolute discretion over the distribution of this lump sum among the deceased’s family, dependants, personal representatives or nominated beneficiaries. The amount of any lump sum depends on the length of the person’s membership and the period for which the pension has been in payment.

Pensions are also generally payable to the pensioner’s widow, widower, registered civil partner and/or dependent children.

Cost of living increases

Pensions payable to members who retire on health grounds and to members’ spouses and children are increased annually in line with the Retail Prices Index. Pensions payable to other members who have reached the age of 55 also benefit from annual inflation proofing.

Where a pensioner has an entitlement to a Guaranteed Minimum Pension (relating to membership up to 5 April 1997), some or all of the statutory inflation proofing may be provided by the Department for Work and Pensions

Further information

More information about the Scheme can be found in the Members Guide available from any of the participating employers or from the Pensions Office.

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