Annual Benefit Statement guidance notes and FAQs

Please check that your personal and employment details are correct.

If your date of birth is wrong it will affect the benefits due to you or if your partnership status is wrong it could affect the benefits due to your dependants (in the event of your death).

If your details are incorrect, please contact the Fund via pensions@northyorks.gov.uk, the contact us form or telephone 01609 536335. 

Annual pension
This shows the total value of your annual pension at 31 March. When you retire this will be paid in monthly instalments for the rest of your life.

Automatic tax-free lump sum
If you were in the LGPS up to 31 March 2008 you automatically accrued a tax free lump sum of three times your annual pension (up to 31 March 2008). The lump sum (where applicable) has been calculated on your whole time equivalent pensionable pay at 31 March.

Death in service lump sum
If you die when you are still paying into the LGPS, a lump sum death grant of three times your assumed pensionable pay is paid. It does not matter how long you have been a member of the LGPS, provided you are under age 75 at the date of death. By completing a Death Grant Nomination form you can nominate who you would like to receive your death grant. You can also update your wishes on your online pension record in My Pension Online.

If you also have a deferred benefit and/or a pension in payment from a previous period of membership of the LGPS, the lump sum death grant paid is the greater of:

• the total of any lump sum death grants payable from the deferred and/or pensions in payment.
• three times your assumed pensionable pay at the date you die.

Please note that the lump sum death grant and annual survivor’s pension are two separate benefits.

Annual Survivor’s Pension payable on your death
This is an estimate of the pension payable to your partner if you remain contributing to the scheme until your Normal Pension Age (NPA). A partner can be your spouse, registered civil partner or, subject to certain qualifying conditions, an eligible cohabiting partner. If you are not married or we don’t know whether you have a spouse or partner this figure will be nil. If you are single and are not survived by an eligible cohabiting partner, no survivor’s pension (other than to an eligible child) will be paid.

This pension is payable immediately after your death and will increase each year in line with the cost of living.

Pension at NPA
This is the total estimated value of your career average pension benefits earned up to NPA plus any final salary benefits that you accrued up to 31 March 2014 assuming your pensionable pay stays the same.

Your NPA shown under this section is linked to your State Pension Age (SPA) and may therefore change in the future. Reductions for retirement before your NPA are not reflected in this statement.

The projection of your annual pension to your NPA has been based on your CARE pensionable pay and final salary pay (if applicable) as at 31 March. It has been assumed that you will continue to contribute to the same section of the LGPS until your NPA. When you leave, your pre 2014 final salary benefits (if applicable) will be based on your full time equivalent pay at that time; this does not include non-contractual overtime or additional hours.

Automatic Tax Free Lump Sum at NPA
If you were in the LGPS up to 31 March 2008 you automatically accrued a tax free lump sum of three times your annual pension (up to 31 March 2008). The lump sum (where applicable) has been calculated on your whole time equivalent pensionable pay at 31 March.

Annual Survivor’s Pension at NPA
This is an estimate of the pension payable to your partner if you remain contributing to the scheme until your Normal Pension Age (NPA). A partner can be your spouse, registered civil partner or, subject to certain qualifying conditions, an eligible cohabiting partner. If you are not married or we don’t know whether you have a spouse or partner this figure will be nil. If you are single and are not survived by an eligible cohabiting partner, no survivor’s pension (other than to an eligible child) will be paid.

This pension is payable immediately after your death and will increase each year in line with the cost of living.

Career Average Revalued Earnings (CARE) pensionable pay for year ending 31 March
Your pay information has been provided by your employer.  You must check that your CARE pensionable pay is correct otherwise your CARE benefits may have been calculated incorrectly.

Your CARE benefits are based on the actual pensionable pay that you have received during the scheme year (from 1 April to 31 March), referred to as your CARE pensionable pay. In the CARE scheme, all overtime and additional hours are included in your CARE pensionable pay.

If you have received reduced or nil pay during the scheme year, due to sickness/injury, child-related leave or reserve forces service leave, your pay will have been based on your Assumed Pensionable Pay (APP), which is an average of the pensionable pay received during the 3 complete months (or 12 week period if weekly paid) before you entered the reduced/nil pay period. See further information on absences.

Final salary pensionable pay for year ending 31 March
Your pay information has been provided by your employer. You must check that your final salary pensionable pay is correct otherwise your final salary benefits may have been calculated incorrectly.

Your final salary benefits were built up in the LGPS before 1 April 2014. If you joined the LGPS on or after 1 April 2014 this field will be blank.

You should contact your employer immediately if you think your CARE pensionable pay or final salary pensionable pay (if applicable) is incorrect.

The LGPS changed from a final salary scheme to a career average scheme on 1 April 2014. In the career average scheme 1/49th of the actual pensionable pay you receive each year is put into your pension account.

The total CARE pension built up in the scheme is for the period from 1 April 2014 to 31 March of the current year. The statement also shows the CARE pension you have earned between 1 April & 31 March of the most recent year.

You should contact your employer immediately if you think the pensionable pay figure quoted is incorrect.

This only applies to you if you were a member of the LGPS before 1 April 2014.

Your whole time equivalent pensionable pay at 31 March has been used to calculate your final salary annual pension and any automatic tax free lump sum. If you were in the LGPS up to 31 March 2008 you automatically accrued a tax free lump sum of three times your annual pension (up to 31 March 2008). 

Your employer has provided your pay figure, if you think it is wrong please contact your employer.

This shows your career average pension benefits earned up to NPA plus any final salary benefits that you accrued up to 31 March 2014 assuming your pensionable pay stays the same.

Your NPA is linked to your State Pension Age (SPA) and may therefore change in the future. Reductions for retirement before your NPA are not reflected in this statement.

Your projected annual pension to your NPA has been based on your career average pensionable pay and final salary pay (if applicable) as at 31 March. It has been assumed that you will continue to contribute to the same section of the LGPS until your NPA. When you leave, your pre 2014 final salary benefits (if applicable) will be based on your full time equivalent pay at that time; this does not include non-contractual overtime or additional hours.

You should contact your employer if you think the pensionable pay figures shown are incorrect.

This shows who you have nominated to receive your lump sum death benefit in the event of your death. If this is blank on your statement you have not made a nomination.

By completing a nomination your lump sum death benefit is usually excluded from any calculation of Inheritance Tax. If you die while you are still employed and paying into the pension scheme we will pay a death grant of three times your (assumed) pensionable pay. This may be different however if you also have a deferred benefit and/or pension in payment with the LGPS, further information can be found on the LGPS Member website.

To make or amend your current nomination, please either login to My Pension Online or download the Death Grant Nomination form.

You can nominate whoever you wish to receive your death grant but please remember that this is not legally binding. The Fund has absolute discretion who to pay the death grant to.

Information regarding annual allowance & lifetime allowance can be found in the Tax limits section of the website.

I have more than one pensionable post, how do I know which post the statement is for?
Section 1 of your statement shows your payroll reference number, post number (where applicable) and the date you joined the scheme in that post.

What section of the Scheme have my projections been based on?
There are two sections of the Scheme – the Main and 50/50, the projections shown in section 3 are based on the section of the Scheme you were in at 31 March.

What is Normal Pension Age (NPA)?
Your Normal Pension Age (NPA) is linked to your State Pension Age (SPA). If the Government changes SPA in the future, your NPA for pension built up from April 2014 will mirror these changes. Further information can be found on the LGPS Member website.

There is an error with my personal details/salary information, what do I do?
You should contact your employer if any of your details are incorrect.

I have transferred in pension benefits, are these included in the figures quoted?
If you transferred in previous pension benefits before 31 March they will be included in the figures shown.

I have an added years contract or have bought additional pension, are these included in the figures quoted?
Yes, the figures shown include any extra pension bought. If you have an ongoing contract, the figures projected to NPA are based on the assumption that the contract is complete.

Who is eligible for a survivor’s pension?
A pension is payable to your husband, wife, civil partner and if eligible, your cohabiting partner. You don’t have to provide details of your cohabiting partner but we recommend that you complete a Co-habiting partners form. A survivor’s pension is payable immediately after your death and is payable for life; it will be adjusted each year in line with the cost of living.

A child’s pension is also due to any eligible child/children. The amount of pension depends on the number of eligible children and whether a survivor’s pension is also being paid. Where a pension is payable to two or more children the pension will be shared equally.

See further information on survivor and children’s benefits.