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Norfolk Pension Fund Newsletter 2009 1

Primetime

Your pension

is safeSee page 4

Winter 2009Issue 2

Pension fund newsletter for retired members

2 Norfolk Pension Fund Newsletter 2009 Norfolk Pension Fund Newsletter 2009 3

Your name

Your National Insurance number

Norfolk Pension Fund 01603 495788

State Pension 0845 6060 265Other organisations you might want to be notified

Bank

Building Society

Local Council

Doctor

Solicitor/accountant

Tax Office 0845 3667851Insurance policy

Mortgage

Credit card

Gas

Electric

Other

Useful information

The Norfolk Pension Fund, 4/5th floor, Lawrence House5 St Andrews Hill, Norwich NR2 1AD

01603 495788

[email protected]

www.yourpension.org.uk

to this latest edition of the Norfolk Pension Funds magazine for retired members. Your magazine now has a name – “Prime Time”. Congratulations to Mr Tony Newson who suggested the new title, voted most popular at last years Retired Members Week events.

As well as the usual mix of stories to help you plan your affairs, I am delighted that we have been able to include a couple of features sent in by retired members. Thanks to everybody who sent in ideas – do please keep them coming. Remember this is your magazine and we want to hear from you. There is a £10 M&S voucher for every story that we use.

As usual, there is quite a lot to take in, so if you need to know more, you are very welcome to call our pensions payroll team on 01603 495788.

I hope that you enjoy this issue.

Nicola MarkHead of the Norfolk Pension Fund

Hello and welcome...

We thank the Greater Manchester Pension Fund for their help with this newsletter.


These days, it’s hard to

turn on the TV, open a

newspaper, or browse

the web, without finding

endless stories about

the recession, the credit

crunch, and the crisis in the

financial markets. These

are very difficult times.

Understandably, many of you may be worried that this might affect your Local Government Pension Scheme (LGPS) pension.Please don’t worry – your LGPS pension is safe and guaranteed.

How benefits are worked outYour pension benefits in the LGPS are based on your final pay and membership when you finished work. Because of this, your benefits are not affected by the value of the Pension Fund, which goes up and down as it receives contributions and pays benefits, and as investment markets rise and fall.

Three yearly health checkEvery three years the Fund has a ‘health check’ - where an outside specialist examines the value of its assets (its investments and future income) and the extent of its liabilities (what it has to pay out now and in the future). This process is called a valuation, and this is how we make sure that we always have enough money to cover your pensions, now and into the future. Contributions from Employers are adjusted as a result of this exercise.

Your pension scheme was created by statute and is backed by Government. This means that your pension is well protected and guaranteed.

A good track recordThe Local Government Pension Scheme was created in 1922 and over the decades has seen huge swings in the value of investments markets, both up and down. The recent ups and downs do not affect our ability to pay pensions. So you can rest assured that your pension is secure.

Your LGPS Pension is safe ‘ Your benefits are not affected by the value of the pension fund…’


If you have one why not share it with us in your Primetime magazine. We’re interested in all sorts - maybe you’ve become a wiz on computers, or you’ve been travelling or have a favourite recipe you would like us to try.

Don’t be shy - pick up your pen and paper, or start tapping that keyboard, and drop us a line - if we feature your story, we’ll send you a £10 Marks & Spencers Voucher.

Please send your stories to: The Norfolk Pension Fund, 4/5th floor, Lawrence House, 5 St Andrews Hill, Norwich NR2 1AD, or e-mail: [email protected]

We all love a good story

Investigation in progressSometimes we make a payment of someone’s pension after they’ve died, simply because we aren’t informed in time. But in a small number of cases, we have discovered family members fraudulently claiming someone’s pension after they’ve died.

To detect this type of activity, we take part in something called the National Fraud Initiative (NFI). It matches the records of all public sector pension schemes like ours, to the Department for Works and Pensions database.

This then highlights cases where pensioners have died, and someone else has wrongly carried on claiming the money - all cases identified are investigated and sometimes this involves the police.

But it isn’t just about picking up payments we shouldn’t be making - it can also help identify payments we should be making but aren’t. For example there are sometimes cases where the main pension holder has passed away but a pension for a dependant such as a husband or wife hasn’t been set up.

Nothing to declare?

Another aspect of the NFI exercise is to prevent fraudulent claims for housing benefit or other payments. So remember, if you claim anything like this, you must tell them you draw a pension from us, as they may have to take its value into account.

Remember - the authorities take fraud very seriously, and anyone committing such a crime will be asked to pay the money back, and may face prosecution.

6 Norfolk Pension Fund Newsletter 2009

Norfolk Pension Fund Newsletter 2009 9 8 Norfolk Pension Fund Newsletter 2009

Pensions up 5% this timeAs prices in the shops go up, it’s good to know your NPF pension keeps pace...

If you are a retired member who is under 55, you will have to wait until 55 for your pension to go up, unless you retired through ill health.

Do you have a GMP?If you were a member before 6 April 1997 and you have reached State pension age, your pension from us has to be at least as much as something called the guaranteed minimum pension or GMP. The figure is set by the Department for Work & Pensions, and they will normally pay all or part of the increase on the GMP part of your pension from us.

Your NPF pension is increased by exactly the same as the rise in the Retail Price Index (RPI) as at September of the previous year (so this year, as at September 2008). Last years increase applied from the 7th April 2008, so would have been reflected in your pension payment in April. This years increase (5%) will apply from the 6th April 2009.

What if I’ve not been on pension long?If your pension began on or after 7 April 2008, then it will be increased by a proportion of the full amount. So to give you the general idea, if you’ve been on pension for six months, you’ll get half the full increase – in other words 2.5%.

We always pay your pension in arrears on the last traditional working day of the month.

In 2009 pensions will be paid on the following dates...January Friday 30 January February Friday 27 February March Tuesday 31 March April Thursday 30 April May Friday 29 May June Tuesday 30 June July Friday 31 July August Friday 28 August September Wednesday 30 September October Friday 30 October November Monday 30 NovemberDecember Thursday 31 December

Not all retired members receive a printed payslip each month any more. For those of you that still do, as we have talked about before, we plan to reduce the number of payslip we print and post each month. These changes will come in later in the year. Instead of sending you a printed payslip each month, we will only send you a payslip when the amount being paid to you varies. Please don’t worry about this – we will write to you before we make any changes, and you will have the option of still receiving a printed payslip each month.

Pension Payment dates for 2009

New job?Please remember, you must tell us if you get another job with any employer who offers membership of the LGPS - whether or not you join the Scheme. In some cases, working for this type of employer may affect some peoples pensions. If you think that this may apply to you, there is more detail in the article on abatement on the following page.

Changing your bank?If your bank details change, your bank or building society may not tell us, so please make sure you do! Please note we cannot take bank changes over the phone, so you will need to drop us a line or call in at our offices. Payroll is usually run around the middle of the month, so please let us know in good time or it might delay your payment.


Question: What is abatement? Answer: Within the Local Government Pension Scheme (LGPS) abatement is the term we use if we reduce or suspend pension payments for a period when:• A pensioner of the scheme is re-employed with an employer, and• Is able to join the LGPS as an employee, and• Their new pay and pension together add up to more than their

final salary when they retired.

Abatement

Like all Pension Funds, the Norfolk Pension Fund has to have a policy on abatement. Our policy is regularly reviewed, in consultation with the employers of the Fund. At the last review, the Pension Fund “Trustees” changed the policy on abatement.

The new policy is that abatement is no longer required in any case of further employment with any employer who gives you the right to join the LGPS. It is not entirely that straightforward for all members however…

• This policy only covers pension paid on LGPS membership paid for or service transferred into the Local Government Pension Scheme at the date of your retirement. It does not cover compensatory added years, which are awarded and paid

under completely separate regulations.

• Added Years will continue to be monitored and abated if necessary. Retired members who have any added years will receive a letter confirming their adjusted earnings limit (i.e. excluding the main scheme local government pension) and will continue to receive yearly assessment letters.

Nobody will receive less pension as a result of this change in policy.We will write to you if you are a re-employed retired member affected by this change. This may take a little while as we go through all the cases affected. If you have any concerns or questions in the meantime please don’t hesitate to call our Retired Members Pensions Support Team on 01603 495788.


The 1 January 2009 marked 100 years since the first pensioners went to the Post Office to collect a State Pension of 5 shillings a week. In 1909 half a million people over 70 got a State Pension for the first time. It’s an opportunity for us to salute the pension pioneers whose vision gave this country a vital base for our later years.

The Government have produced some interesting documents and facts to mark the occasion. You can see from the documents how different today’s pension is to the one of 1908, and that we face new challenges. We live longer and want more from those years. For example, in 2063, we should have our first 120 year old. This means she is already 65 and drawing her state pension. She will do so for half her life. Who knows, she could be one of our retired members…

We thought that you might enjoy some of the facts and figures they have produced ... if you would like to know more, have a look at the Department of Work and Pensions website at www.dwp.gov.uk/mediacentre/pensioncentenary .

Then and now In real terms, the basic state pension is worth around four times more today than the amount received in 1908. One way of looking at it is to consider what basket of goods the state pension bought in 1908 and how much today’s pensioners would spend on the same.

The full pension in 1908 was 5 shillings, which would buy...• 5 large loaves of bread 1s. 0d • Half lb of tea 10d • lb of sugar 2d • lb cheese 8d • 7lbs potatoes 3d • 2lbs meat (cheap cuts) 1s. 1d • 7 pints milk 1s. 0d

Today this basket could be bought at a major supermarket for £19.15... • 5 large loaves of bread £5.00 • 250g tea £1.28 • 500g white sugar £0.48 • 500g cheddar £3.38 • 2.5k potatoes £1.98 • 1k Value stewing steak £4.49 • 7 pints whole milk £2.54

100th Anniversary of the State Pension Statistics The percentage of the generation who survived to State Pension Age • 1908 = 24% • 2008 = 84% • 2018 = 86%

Life expectancy at State Pension Age • 1908 = 9 years • 2008 = 25 years • 2018 = 24 years*

* Life expectancy at State Pension Age decreases slightly between 2008 and 2018 because State Pension Age for women will have increased from 60 to 64.

State Pension Centenary


This recipe was sent in by Ron Britton, who worked for Norwich City Council for over 40 years. He says, “Here is a cheap and simple ‘winter warmer’ recipe.”

Let us know how you get on if you make it, or maybe you have a favourite recipe you would like to pass on? If so, drop us a line to: The Communications Team, Norfolk Pension Fund, 4th floor Lawrence House, 5 St Andrews Hill, Norwich, NR2 1AD or e-mail: [email protected]

Ingredients (to feed 4 people)2 lb (900 g) peeled and sliced potatoes• 1 lb (450g) sausage meat, rolled into small balls (or skinned • sausages cut into bite size pieces) ½ lb ( 225 g) peeled and sliced tomatoes• 1 apple peeled and sliced• 1 onion peeled and sliced• 1 tablespoon plain flour• Stock or water• Salt and pepper to taste•

MethodDip the sausage into the flour seasoned with salt and pepper.1. Arrange a layer of sliced potatoes in the bottom of an 2. earthenware casserole.Cover with a layer of sausage followed by a layer of apples, 3. tomatoes and onions.Repeat the layers, finishing with potato.4. Fill three quarters full with stock or water.5. Cover tightly, and bake in a moderate oven 6. (180 or gas mark 4) for approximately 2 hours.


Latest news from Pat Bullock,Manager of your Pensioner Payroll Support Team... We hope that you have found this edition of Prime Time interesting and useful. During the year, there have been some changes to the team that are here to support you.

Both Andrea and Elaine were promoted to other areas of Pensions, and two new team members (James and Sandra) recruited to join Paul, Jane, Shenda and I. The new team is settling down well. Sandra says, “It has been great joining this team and being part of the payroll side of business. The work is varied and enjoyable and along with my colleagues, I look forward to providing help and assistance to all our members.”

Do look out for Sandra and James, and the rest of the team, at this year’s Retired Members events.

Please remember that we are here to help you with any concerns or questions you may have about your Local Government Pension Scheme pension – you can contact us on 01603 495788.

Best wishes, Pat

Pat (right) with new team members James and Sandra.


Accounts and investmentsHere is a summary of the Norfolk Pension Fund accounts and investments...

AccountsOur full accounts for 2007/8, and also our Statement of Investment Principles, which includes details of our Socially Responsible Investment and Corporate Governance activities, can be downloaded from our website: www.yourpension.org.uk . If you would like a paper copy, please contact us on 01603 222824.

2006-07 2007-08 £000’s £000’sOpening net assets of the scheme 1,736,327 1,891,261Employees’ contributions to the fund 23,556 25,032Employers’ contributions to the fund 72,159 68,812Transfer Values Received 15,499 14,866Payments to pensioners and dependants -69,162 -73,003Transfers out and other payments to leavers -5,754 -6,366Advisor fees and general administration costs -1,686 -1,959Net investment return – including income and the change in value of investments 120,322 -75,726Closing net assets of the scheme 1,891,261 1,842,917

The Pension Fund’s money is invested with nine fund managers, who each specialise in an asset type, such as UK shares, overseas shares, property, etc, as shown below. The aim is to have a mix of assets that provides the maximum return while managing the risk to the Fund – or to put it another way, we try not to put all the eggs in the same basket! (Two currency managers, Goldman Sachs International and Auriel Capital Management, were appointed with effect from April 2008 and will therefore appear in next year’s accounts.)As at 31 March 2008, the manager holdings were as follows:

Aberdeen Asset Management, Government and company bonds 10.1%

Fidelity Pensions Management, Shares in overseas companies 19.5%

Capital International Limited, Shares in overseas companies 17.3%Morley Fund Management,

Property 14.6%

Alliance Bernstein, Shares in UK companies 12.6%

Baillie Gifford & Co, Shares in UK companies 12.6%

Henderson Global Investors, Government and company bonds 8.7%

Harbour Vest Partners, Private Equity 1.3%Standard Life Investments,

Private Equity 3.0% Northern Trust Global Funds, Cash 0.3%


Here’s an example assuming ‘Joan’ will pay tax at 20% Joan is 66 and has a State pension of just over £80 a week (£4230 a year), and has a pension from the Norfolk Pension Fund of £500 a month (£6000 a year).

She has no other taxable income, so the total the HMRC will look at is £10,230...

Income for tax purposes: £10,230Age related allowance: £9,030Taxable income: £1,200Now the 10% band is scrapped, Joan will pay tax at 20% on this £1,200, in other words:

Taxable income: £1,200Tax due: £1,200 x 20% = £240 a year (£20 a month)

To see the answers to some of the most frequently asked questions on tax please turn over the page.

Personal allowance £5,435 a year(increased from September 2008) £6,035 a year

Personal allowance for people aged 65-74* £9,030

Personal allowance for people aged 75 and over* £9,180

* There is an income limit for these age related allowances of £21,800 a year. This means that the allowance will go down by £1 for every £2 of income above the limit.

Taxing timesIn the Chancellor’s pre budget report in 2007, he announced some changes to the way income tax works from April 2008, as well as the usual changes to the personal allowances.

There are also other allowances, such as the married couple’s allowance, and blind persons’ allowance but these don’t apply to everyone - please ask the Tax Office (HMRC) if you need more details.

Working out your taxSo now to the crunch... if your income is above your allowance, how much tax will you pay?

Last year, the Chancellor surprised many people by announcing a cut in the basic income tax rate from 22% down to 20%. This may sound like good news, but when you dig a little deeper, you see that as part of the changes, the starting band of 10% disappears (this was the rate that applied to the first £2230 or so).

Remember, it’s your tax code which tells us how much tax to take from you, if any. And as these changes only came in from 6 April 2008, they only applied from your May pension. And by the way, we don’t generate your tax code, it’s the HMRC. If you think that there is a problem with your tax code, HMRC’s details are on page 16.


TaxQ I have received a form P2 Notice of coding what should I do?

A Nothing! HMRC (Her Majesty’s Revenue and Customs) will inform us directly of your new code.

Q I think I’m paying too much tax, who should I contact?

A HMRC, You will need your National Insurance Number and PAYE reference for the fund. (You can find both on your P60.)

Q I’m a pensioner, should I be paying tax?

A If your income is more than your personal allowance then you have to pay tax. The amount of tax you pay is calculated on all your income, including your pension(s) See pages 18 and 19 for details of this year’s personal allowances).

Q How is my tax code calculated?

A Your P2 Notice of coding shows how your code is calculated, you should check this carefully and contact HMRC if you think it is wrong.

If you would like help understanding your Notice of coding before contacting HMRC, please call us on 01603 495788.

Telephone 0845 366 7851Open 8am - 8pm, 7 days a weekPlease quote your National Insurance number and reference 531/N3722Por their web address: ww.hmrc.gov.uk/home.htm

Keep in touch with us!

Please remember to keep us in the picture if you move house, or if this newsletter didn’t come to the right address.

You can do this by phone, by fax, by email, or by post (but preferably not by bottle).

See back cover for all our contact details.

You are also very welcome to call at our Norwich offices - our opening hours are shown below:

Monday to Thursday: 8.45am - 5.00pmFriday: 8.45am - 4.00pm

Our phone lines are open until 5.30pm Monday to Thursday and until 4.30pm on a Friday

Frequently asked questions...


Africa beckons some members of the Norfolk Pension Fund. Sue Norgrove, who was a manager for Norfolk Children’s Services, and Nick Nicholson, who worked for Norwich City Council, are trustees of a local charity that supports Dedza District in Malawi.

The work of the Norwich-Dedza Partnership is carried out by individuals and organisations in and around Norwich. In Malawi, projects are co-ordinated through the local government council for the area, the Dedza District Assembly.

There are several strands to the work. The Partnership has sent shipping containers with computer equipment, school books, tools, sewing machines,

sports kit, etc that were donated by councils, schools and individuals in Norfolk. These items are used in local government offices, the hospital, schools and community groups.

There is a Bursaries Fund to pay the school fees for secondary school students whose families are subsistence farmers with no income. Schools in Norfolk and Dedza have been linked so that pupils can learn about each others’ lives. Volunteer visitors carry out short teacher training sessions.

The Partnership raised funds that enabled the Dedza District Assembly to renovate a run-down hostel used by people looking after their relatives who are patients in the local hospital.

Easton College is helping with agriculture projects and the Hotel

School at Norwich City College is assisting the development of tourism. The Partnership wants to help with vocational and other training for young people in Dedza who have no employment.

The Partnership welcomes all forms of support. Financial donations are needed for bursaries and other work.

Volunteers can help with fundraising. People with useful skills can visit Dedza and carry out projects for two weeks or longer.

To find out more about the Norwich-Dedza Partnership, see the website www.norwich-dedza.org.

Norwich-Dedza Partnership

Nick greets young Malawian

Sue at rock painting site

The following article was sent in by Helen Johnson. Helen had to undergo surgery a while ago, and was quite nervous before hand. She hopes that her experiences may encourage someone else.Helen writes...As time goes by it’s not only our cars that start to wear out. I recently had to have a hip replacement operation and want to encourage anyone who is doubtful about the process to get it done.The worst part is the night before the operation when you want to sneak out of the hospital and go home and carry on with your walking stick. Two days after you also wish you had never bothered as the

Physiotherapist encourages you to “just walk along the corridor with these crutches”. However, a few weeks later as you progress from two sticks to one stick to a tentative walk with no sticks, you suddenly realise that you are back to normal. You might need to build up your distance gradually but when you are retired what else is there to do but have lots of little practise walks round the block? It’s a good way to meet all those neighbours you have never spoken to before!Six months on and you are taking the dog out, driving around in the car and feeling like a new person. So, if you’re dithering, Go on! Be Brave! Say “Yes”!

A good news story...

Can we help you?

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The Norfolk Pension Fund5th Floor Lawrence House5 St Andrews HillNorwich NR2 1AD

Printed on recycled paper using vegetable based inks

[email protected]

www.yourpension.org.uk

01603 495923

Please have your National Insurance number handy

If you would like this magazine in large print, audio, Braille, alternative format or in a different language, please contact Doreen Metcalf on 01603 222 824 (minicom 01603 223 833).

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Primetime - Norfolk Pension Fund | Homepage€¦ · Primetime magazine. We’re interested in all sorts - maybe you’ve become a wiz on ... printed payslip each month, we will only