Background West Midlands Pension Fund administered by Council since 1986
Wolverhampton
City
200,000 total members / beneficiaries including over 43,000 pensioners around 200 employers in Fund
Can I Join the Scheme? YES – if you :Have a contract for at least three months Are full time or part time Are not a teacher No age restrictions Automatic entry Membership optional Alternative arrangements:S2P Personal Pensions
How Much Will I Pay? Rates based on salary levels Rates range from 5.5% to 7.5% Based on full time equivalent pay if part time Average rate across the bands is 6.3% Bands are adjusted for inflation each April
How Much Will I Pay? Employees Contribution - tax Relief - national Insurance Savings Employers Contribution - roughly 2/3 of cost of benefits
Pension Bands If your Whole Time Equivalent rate is:
Your rate contribution pay will be:
Up to £12,900
5.5%
More than £12,901 and up to £15,100
5.8%
More than £15,101 and up to £19,400
5.9%
More than £19,401 and up to £32,400
6.5%
More than £32,401 and up to £43,300
6.8%
More than £43,301 and up to £81,100
7.2%
More than £81,100
7.5%
What Do I Get?
Index Linked Pension Plus an automatic tax-free lump sum if you have membership before 01.04.08 A range of ways to retire Normal retirement at age 65 Option to take benefits from age 60 Early retirement possible, with agreement, from age 55
What Do I Get? Ill-health provisions with added extra service linked to future work prospects A death in service lump sum of three times annual pensionable pay Dependants’ benefits for spouses, children, nominated cohabiting partners and registered civil partners Transferability in and out in most cases Index linked frozen benefits if you leave before retirement age
How is my Pension Worked Out? Final salary Scheme Benefits are based on –
Length of Scheme membership Earnings in (usually) last twelve months of membership
Membership after 01.04.08 now based on higher “60ths” formula with no automatic lump sum Membership before 01.04.08 still based on old “80ths” formula with an automatic lump sum
Example calculation Employee 31.03.12
retires
at
age
65
on
has worked 30 years for the City Council final year’s pensionable pay is £15000
Calculation Pension:
26 years x £15000 / 80
= £4875 pa
4 year x £15000 / 60
= £1000 pa
TOTAL
= £5875 pa
Lump Sum: 3 x £5437.50
= £14,625
Working Part-time Where an employee is part-time, the length of service counted towards the pension is scaled down according to the proportion of hours worked, e.g. :5 years at job-share (half-time) = 2 1/2 years pensionable service
Although pension contributions are based on actual, part-time pay, the pensionable pay used when benefits are calculated is the full-time equivalent pay, e.g. :Employee works job-share and is paid ÂŁ7500.00 p.a., pension is based on ÂŁ15,000.
What If I Leave Before Retirement? A net refund of pension contributions if less than 3 months in the Scheme, or a transfer to another pension scheme, or Deferred pension benefits inflation proofed paid from normal retirement date at the latest
Can I pay more? Additional Voluntary Contributions (AVC’s) “in-house” or “free-standing” Tax free lump sum
Additional pension value (“ARC’s”) £250 multiples up to £5000
Additional pension contributions qualify for tax relief
Pensions Office
Address & Telephone Numbers Telephone Number:Address:The Pensions Office (0121) 675 7070 PO Box 14345 Birmingham Fax Number:B2 2HZ
(0121) 303 5103
Pension Fund Helpdesk: 0300 11 11 665 West Midlands Pension Fund Website:
www.wmpfonline.com
Any Questions?