Pension Planning BUS FUND November 2013 Issue 45

Pension Planning November 2013 Issue 45 with the Local Government Pension Scheme Beware of Pension Liberation Fraud Fraud is a word you never want to associate with your pension benefits. However, an activity known as Pension Liberation Fraud is increasing across the UK. Pension scheme members are being approached by unscrupulous companies with the promise of instant cash sums and/or early access to their pension if they transfer their pension savings to them. Welcome ... to your Pension Planning newsletter. Here is a list of the articles that you can find in this issue.... Page 2 • Autumn Alert • Competition Winner Page 3 • Customer Service Excellence Review • New Office for District Staff • Review of 2012/2013 240 0 220 0 Introduction 200 0 180 2,203 0 2,190 160 0 2,175 140 0 2,161 120 0 2,146 100 0 Pages 4 - 5 • Review of 2012/2013 1,184 800 600 400 200 0 1,253 1,305 533 466 200 9 2 1,355 526 1,393 511 411 010 20 488 359 11 2 8 012 461 31 Membership/Customer Service/Fund Statistics 29 20 2 13 Pages 6 - 7 • Investment Report 2012/2013 Introduction/10 Year Annualised Figures/Fund Account 20122013/Fund Performance/ Asset Allocation UK Equities 16.3% Corporate Bonds 13.8% Page 8 • We Are Here to Help • Pension Puzzler Index-Linked Gilts 36.4% It is not illegal to transfer pension pots to other approved pension arrangements, but taking money out of those pots and before age 55 may be in breach of HMRC Regulations resulting in severe tax penalties. Some companies intentionally withhold information about these penalties and deliberately try to mislead people. This is illegal! They don’t tell people that they will take an administration fee, which is usually a very high amount, therefore reducing the amount available to provide a pension income. Additionally, and most importantly, people may be faced with a hefty tax charge of up to 40% of the amount being taken out early. The end result can be that more than half the pension pot has been swallowed up in fees and taxes leaving a lot less pension for retirement. International Equities 26.8% continues on page 2 >>