The simple answer is NO, if you are
a member of the Scheme on the
31st March and 1st April 2014 you will
automatically move into the New LGPS
and benefit from all the new features.
50
Voluntary
• no change or even a lower
contribution rate for the majority
of our members;
• more flexibility;
• the facility to retire as early
as age 55 without employers
permission;
More information
For scheme members a dedicated
website was launched in late 2012 to
act as a central point for information on
scheme changes from April 2014. The
information which populates the website
is regularly updated and is still accessible
through the following website address;
www.lgps2014.org
In addition a new scheme booklet will
be available on our website, at;
www.sypensions.org.uk/booklets
Retirement
• working additional hours will
result in a bigger pension;
BUILD-UP
RATE
• the best of both worlds for
members close to retirement;
50/50
• plus all the fantastic benefits the
Scheme currently offers.
Changes to the Tax Controls
on Pension Savings
There are two HMRC controls on the amount of pension savings you can have
before you become subject to a tax charge. This is over and above any tax due
under the PAYE system on your pension once it is in payment.
The two controls on pension savings are known as the Annual Allowance and
Lifetime Allowance.
The Annual Allowance is the maximum your benefits can grow each year
without incurring a tax charge. From 6th April 2014, the Annual Allowance will
reduce from £50,000 to £40,000.
The growth of your benefits each year will be supplied on your annual pension
forecast; however we would contact you separately with further information if
you exceeded the Annual Allowance limit. The majority of scheme members
will not be affected by these changes but the reduced threshold has potential to
affect members who receive a substantial pay increase coupled with significant
membership of the Scheme.
The Lifetime Allowance is the total capital value of all your pension
arrangements which you can build up without paying extra tax. From 6th April
2014 this will reduce from £1.5 million to £1.25 million.
To help with the transition for members who may be affected by this, HMRC
offer two types of protection, Fixed Protection and Individual Protection.
Could you breach the Lifetime Allowance?
It is not just about the value of your LGPS benefits.
• Do you have several pension pots with other pension providers?
• Do you have a history of large pension contributions, even a single
contribution?
• Do you make Additional Voluntary Contributions?
If the answer is yes, then you may wish to seek independent
financial advice.
A factsheet containing more detailed information on both Annual Allowance
and Lifetime Allowance is available on our website at www.sypensions.org.
uk/news however if you don’t have access to the website and you would like a
copy of the factsheet please contact us.
We are here
to help -
PLEASE
ASK US
If you would like this, or future
newsletters, in large type, on
audio CD or Braille, please
contact Martin McCall on 01226
772961, or write to Martin at the
address below.
Address for letters;
South Yorkshire Pensions
Authority, 18 Regent Street,
Barnsley. S70 2HG
Other ways to contact us;
Email: [email protected]
Telephone: 01226 772923
Website: www.sypensions.org.uk
Fax: 01226 772938
Text: 07786 204697
(when texting us please quote
your National Insurance number
and brief details of your request)
You can also find us on
Facebook, Twitter and
YouTube at;
www.sypensions.org.uk/facebook
www.twitter.com/sypensions
www.youtube.com/sypensions
PP March 2014 16 - 35 MALE
• a higher pension
build up rate;
Do I have to do anything?
Best of
Both
Flexibility
LUMP
50 SUM
A new scheme means
Contr ib ution
Rate
In short what does a new
scheme mean for members?