Why Cadbury’s brought sweet returns

APRIL 2006 - ISSUE 11

pensionsgrapevine

GRAPEVINE APRIL 2006 0161 301 7100

Hello there......and welcome to this latest issue of Pensions Grapevine – the official newsletter for everyone drawing a pension from Greater Manchester Pension Fund.

You can’t turn on the TV or open a newspaper these days without finding a story about pensions. Sadly some commentators are making it sound as though those of us in the public sector have got some kind of ‘gold plated’ pension scheme, at everyone else’s expense. Clearly this isn’t the case, and the average retirement pension we pay is only around £4000.

Local government pensions are however guaranteed and so we need never worry about the Fund running out. Pity though those poor people who have been the victim of pension scheme wind ups, and who have seen very little of their money. Their plight was eyecatchingly highlighted at last year’s Labour party conference in Brighton, by a gang of septuagenarians streaking on the beach.

So enjoy every penny of your pension, and remember, whilst those of us still paying in may

be affected by the changes the Government might make to the

Scheme, your pension won’t be touched.

I hope you enjoy this issue, and look forward to writing to you

again next year.

All the best

Head of Pensions Administration

The Pensions Office Concord Suite, Manchester Road,

Droylsden, Tameside, M43 6SF

email: mail@gmpf.org.uk

Greater Manchester Pension Fund is administered by

Tameside MBC and is part of the Local Government Pension Scheme

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Just a quick reminder that the payslip packaged with this issue is an important one, as it also includes your P60 - your certificate of pay and tax for the last 12 months.

So do please keep it in a safe place, as it will normally be needed as proof of how much pension you draw if you come to claim benefits such as income support or housing benefit.

Never let it slip away

Scheme introduces pensions for civil partnersDecember 21st was an important milestone for same sex couples, as the law changed allowing them to ‘tie the knot’ in a civil ceremony, not unlike a register office wedding, and become civil partners. This opens the door to a range of rights, for example property rights, the same exemption as married couples on inheritance tax, social security – and most importantly from our point of view - pension benefits too.

If you are a member of Greater Manchester Pension Fund and you have a same sex partner, then registering your partnership could entitle your other half to a pension if you die first – something they wouldn’t otherwise be entitled to.

The good news is, it makes no difference if you registered your partnership after you retired. The only limit is that your partner’s pension can only be based on your membership after 5 April 1988.

We have produced a helpful booklet called Civil Partnerships & your pension - to get a copy please phone or email us, or you can view a copy on our website.

GRAPEVINE APRIL 20060161 301 7100 3

payroll@gmpf.org.uk

If you’re a whizz on the internet, you might want to give this free service a try. Once you’ve registered, you can view various details we hold about you, and even change certain things, such as your address if you move house.

The service is totally secure, and you can only get into it with a unique PIN number we give you. To sign up simply email us or drop us a line, explaining that you wish to sign up for gmpf online. Please remember to include your name and National Insurance number or GMPF pension number.

We will then send you a PIN number (which you can change to one of your own choice if you like) together with a handy guide to getting started.

Have you signed up for our free gmpf online service?

Payroll section, Greater Manchester Pension FundConcord Suite, Manchester Road, Droylsden, M43 6SF

You’re probably wondering what Cadbury’s chocolate has to do with your pension fund! Quite simply it was one of many investments last year which helped the value of the Fund rise to £7.36 billion. The overall level of investment return which achieved this was an impressive 12.4% which put us amongst the top performing local authority funds.

The Fund holds a very mixed portfolio – everything from Cadbury Schweppes to Vodafone. It invests in companies and bonds across the world. These investments are largely handled by three external fund managers, although property and other specialist investments are handled in house at

Tameside. To put the scale of this task in context, the property portfolio alone was worth £642 million at the year ending March 2005.

The annual report was printed last August, so things have moved on since then. In fact the value of the Fund has since passed through the £8.5 billion mark. But if you would like a copy of the report, you can view it on our website, or ring us on the number below to get your own printed copy.

Frau

d wat

ch Every year, this Fund and other organisations

such as the Department for Work & Pensions, and your

local Council all take part in the Audit Commission’s data

matching exercise to compare records to check for possible

fraud.

The first type of fraud involves people who claim various types of State or

local government benefits & allowances,

for example housing benefit, and fail to declare they draw a pension from us.

The second type of fraud is where one of our pensioners dies and someone else fraudulently carries on drawing their pension.

The authorities really do take a dim view of these types of fraud, and anyone caught out will be asked to pay the money back, plus a penalty charge, and may well face prosecution.

Why Cadbury’s brought sweet returns

GRAPEVINE APRIL 2006 0161 301 71004

Or so Adam Hart Davies would have us believe, when he isn’t explaining what the Victorians did for us! And in fact we agree - tax needn’t be taxing, so here’s a quick guide to personal allowances this year.

Your personal allowance (plus any other allowances you have) determines how much you can ‘earn’ free of tax. So you pay tax on anything over this amount. The ‘taxman' uses the amount of your allowances, and other factors such as the level of your State pension, to decide your tax code. This tax code then tells us how much tax to take. Here are this year's tax allowances, together with details of how to contact the area tax office for this Fund, in case you want to know more.

DID YOU KNOW? The Inland Revenue is now called HM REVENUE & CUSTOMS

New personal allowances Under 65: £5,03565 - 74: £7,28075 and over: £7,420(Based on pre budget figures only).

“Tax needn’t be taxing”

HM Revenue & Customs Area Office:

0845 302 1463

Open 8am - 8pm, 7 days a week.

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Please quote your National Insurance number and reference 582 M5010

New tax codes apply NEXT month

Take care of the pennies...Communications Manager Malcolm Tyrer, writes about a website that’s got him hooked

Last week I cut pounds off my car insurance, found the cheapest flight for my next holiday, and got a free sample of some pain relief gel! These were all thanks to a website I’ve been using called moneysavingexpert.com. It’s the brainchild of award winning TV & radio presenter, newspaper columnist and bestselling author Martin Lewis. You may have heard him on radio 2’s Jeremy Vine show and on the Richard Hammond 5 o’clock show.

Martin’s site remains true to its goal when he set it up – it’s free to use, advert free, and unbiased. Many of the tips come from Martin himself, but also include hints and tips posted by other fans of the website.

So why not give it a go – you could get hooked ( I know I am!) And remember the old adage “Take care of the pennies, and the pounds will look after themselves”.

www.moneysavingexpert.com/

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Forum 2006 tickets now up for grabsIf you would like the run down on what’s been happening here at the Fund, including its investments, why not apply for a ticket to this year’s Pensioners’ Forum.

The all important date is Friday 6th October - so don’t miss out - get your application in now!

What’s in store...The day kicks off with a ‘nice cuppa’ giving you chance to catch your breath, and hopefully catch up with some old pals too.

Then why not make the most of the standholders we have lined up - experts in areas such as tax, making a will, holidays ‘for the over 50s’, and so on.

Then it’s down to business as we move into the main

conference hall for presentations by Fund staff, and visiting speakers too.

After all that, it’s getting towards lunch time, so we serve a light buffet lunch in the same conference room.

Finally tea & coffee is served back in the exhibition area, giving you chance to visit any stands you missed first time around.

Grapevine brainboxNew for last year was a prize quiz - congratulations to Grapevine brainbox Joan Chesworth who got the top score. Why not have a go yourself at this year’s Forum!

How to applySorry, we can only cater for around 400, so we have to draw names out of a hat. To be in

with a chance, simply fill in the slip below and post it back to us by 30 June 2006. We will pick names around August, and send you a ticket if you’ve been successful. To be fair to those who applied last year and weren’t picked, they will be given priority.

This event is completely free of charge, and proves very popular. So please, please, please, only apply for a ticket if you definitely want to go!

See you there!

Please enter me in the draw for a ticket for the 2006 Pensioners’ Forum

At a glanceDate: Friday 6th October 2006Venue: New Century House Corporation Street Manchester

Time: Welcome from 10:00am Finishes around 3:00pm

Your full name:

Your Pension Number:

Signed:

See enclosed payslip if you don’t know your pension number.

Communications Team, Greater Manchester Pension Fund, Concord Suite, Manchester Road, Droylsden, Tameside, M43 6SF.

Please place in an envelope and mail to:

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Return to us by30 JUNE '06

GRAPEVINE APRIL 2006 0161 301 71006

Pensions up from 10th April

Date pension began IncreaseBefore 26 Apr ‘05 2.70%26 Apr ‘05 – 25 May ‘05 2.48%26 May ‘05 – 25 Jun ’05 2.25%26 Jun ‘05 – 25 Jul ‘05 2.03%26 July ‘05 – 25 Aug ‘05 1.80%26 Aug ‘05 – 25 Sep ‘05 1.58%26 Sep ‘05 – 25 Oct ‘05 1.35%26 Oct ‘05 – 25 Nov ‘05 1.13%26 Nov ‘05 – 25 Dec ‘05 0.90%26 Dec ‘05 – 25 Jan ‘06 0.68%26 Jan ‘06 – 25 Feb ‘06 0.45%26 Feb ‘06 – 25 Mar ‘06 0.23%

Calling all readersWhat with stories about tax, the Fund’s finances, this year’s increase and so on, there’s never much spare space in Grapevine! But if we can, we always like to include a story about you, our readers.

We’re interested in all kinds of things - maybe you’ve mastered computers for the first time, or you might want to write a travel piece about where you’ve been on holiday. Or perhaps you’ve got greenfingers and would like to pass on some gardening tips.

So don’t be shy - get the pen and paper out (or plug in the computer!) and drop us a line - if we feature your story, you’ll win a limited edition pension fund pen.

Communications Team, Pensions Office, Concord Suite, Manchester Rd, Droylsden, Tameside, M43 6SF. Or email : mail@gmpf.org.uk

This year’s inflation increase will take place on 10th April, and the increase this time is 2.7%. This is exactly the same as the increase in State pensions and is based on the increase in the RPI (retail prices index). The increase will apply to you whether you are a retired member, or one of their dependants. The only exception is if you are a retired member under age 55, and you didn’t retire through ill health

And by the way, because this month’s payment is for all of April, the first 9 days of it is at the old rate. But of course May’s payment will go up in full.

Who pays the increase?That probably seems a daft question! But if you were a member before 6 April 1997 and have reached State pension age, your pension from us includes something called a Guaranteed Minimum Pension (GMP). If so, the Department for Work & Pensions may have to pay some or all of the increase on this part of your pension from us. They will pay it together with your State pension.

Recent retirementsIf you haven’t been on pension a full year, then you won’t get a full year’s increase. For example, if you retired last September, you get half a year’s increase – 1.35%. This table gives full details.

Guide to RPIThe RPI looks at a ‘shopping basket’ full of goods and services on which people typically spend their money. This includes everything from apples to mobile phones and footwear to postage stamps. Each year the Government monitors the changing price of this basket, and from that works out the RPI. Also each year, new items are added to reflect changes in buying patterns, and others are dropped as they become less popular. For example tinned corned beef was dropped in 2005 - hard lines if you spend your hard earned pension on this!

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Can we help you?To speak to one of our pension payroll team, please have your pension number handy then call us on the number below.

If you prefer to e mail us or visit our website, we have shown these details too...

0161 301 7100mail@gmpf.org.uk

Please let us know if we don’t have your correct address!

www.gmpf.org.uk

New bank account?If your bank details change,

your bank or building society won’t tell us. So please make sure you tell us, by dropping us a line or calling at our offices.

We always pay your pension in advance on the first traditional working day of the month - but sometimes this isn’t the 1st! This happens when the 1st falls on a weekend or a bank holiday, as shown...

April 2006: paid Monday 3rd May 2006: paid Tuesday 2nd July 2006: paid Monday 3rdOct 2006: paid Monday 2ndJan 2007: paid Tuesday 2nd

Make a date!

Bolton: 01204 331901

Bury: 0161 253 5008

Manchester: 0161 455 1071

Oldham: 0161 222 6633

Rochdale: 01706 926173

Salford: 0161 909 6504

Stockport: 0845 6444303

Tameside: 0800 6340949

Trafford: 0161 912 2220

Wigan: 01942 828644

Latest figures show that four out of ten pensioners are missing out on unclaimed Council Tax Benefit. Council Tax Benefit could help pay towards some or all of your Council Tax bill if you are on a low income, even if you own your own home, or you have a job.

Even if you have claimed in the past and been unsuccessful, changes to the rules could mean you now qualify for help. If you are over 60 and your claim is successful, benefit may be backdated for up to 12 months. This could mean you getting a refund on the Council Tax you have already paid.

So don’t lose out – ring your local council to request a claim form now - the numbers for Greater Manchester are shown below...

4/10 pensioners missing out

If you have attended a Pensioners Forum you will have seen, and may well have spoken to, Joyce Cottam, who was the Pensions Payroll Manager for twenty years.

Alas Joyce died in November after tremendously courageous battles against physical handicap and then cancer. Her loss at the Pensions Office is doubly felt as not only was Joyce an experienced and committed pensions professional, but also someone with great personal warmth whose sense of fun was always close to hand. She is sadly missed by colleagues, friends and customers alike.

Got a new job?You need to tell us if you get another job with any employer who offers membership of the LGPS.

In most cases it won’t affect your pension.