Local Government Pension Scheme by FN4Cq68t


									        Police Pension Schemes
                       Hampshire Pension Services

                      Retirement declaration form
                                 Explanatory notes

        Please read these notes before completing the enclosed form.

What is the form about?
You need to provide us with information and options for your retirement before we can process your
retirement benefits under the Police Pension Scheme (PPS) & New Police Pension Scheme (NPPS).
HM Revenue and Customs (HMRC) require us to check if the total amount of benefits due to you
from all registered pension schemes exceeds a Lifetime Allowance set by HMRC as tax charges may
To do this we need you to declare your entitlement to any other benefits. Before your PPS/NPPS
benefits can be paid, you must complete and return the declaration form enclosed with these notes.
The notes explain the information you need to give on the form.

What will happen if I do not return the form?
If you do not return the form, your payment may be delayed. If we have to pay your benefits without
having received your form, we will assume that you have exceeded the Lifetime Allowance and your
benefits will be taxed in full.

Where do I return the form?
       Pensions Services Section
       County Treasurer’s Department
       Hampshire County Council
       The Castle
       SO23 8UB

                                                                                      October 2011
                                     Police Pension Schemes
                                  Hampshire Pension Services

Section 1       Personal details

Please complete all parts of this section and enclose your birth certificate (clear photocopies are
acceptable) or a copy of the relevant pages of your passport.

Section 2       Bank and building society account details

Please give us full details of the bank or building society where you want your pension and any
retirement lump sum paid.

Section 3       Marital status and civil partnership

Please tick the appropriate box and enter the date of marriage, civil ceremony or divorce, if relevant.

As proof of your partnership, you will need to send us copies of your marriage or civil partnership
certificates or decree absolute or judicial separation.

NPPS members only

Please let us know if you have nominated your co-habiting partner so we can ensure that our records
agree. If you have done this, you will have completed a ‘Nomination of co-habiting partner’ form and
supplied appropriate evidence.

You can nominate a co-habiting partner by downloading the form from www.hants.gov.uk/pensions
Police section.

Section 4       Giving up annual pension to receive a tax-free retirement lump sum

Section 4.1
You may choose to give up part of your annual pension to receive a tax-free lump sum. Doing so will
not affect the value of pensions payable to your dependants after your death.
If you are a member of the PPS there is no automatic tax-free lump sum but you can choose to give up
some annual pension to receive a tax-free lump sum. If you are a member of the NPPS you will
automatically receive a tax-free lump sum, but you can still choose to increase this amount by giving up
some annual pension.
Commutation factors (the rate at which annual pension is given up to provide lump sum) are provided
by the Government Actuaries Department (GAD). There is a limit to the total tax-free lump sum you
can take, which is set by HMRC.
You may be able to use the figures on your latest annual benefit statement to help you estimate how
much annual pension you may wish to give up. You can indicate that you wish to take the maximum
lump sum allowed under scheme regulations, however if this exceeds the HMRC limits there will be a
tax charge. Alternatively you can indicate your wish to take the maximum lump sum within the HMRC
limits (25% of the value of your benefits under the Lifetime Allowance).
If you ask for an estimate, we will need to contact Hampshire Constabulary for pay and service details.
We will let you know that we have done this when we acknowledge your form. If there is any delay,
please contact your employer to check they have sent us the necessary information.
Under HMRC rules any change to the amounts payable after we have received your decision may be
subject to a tax charge. Please ensure you are happy with your decision before returning the completed
Section 4.2
If you have paid additional voluntary contributions (AVCs) to Equitable Life or Standard Life, you may
also choose to use some or all of your in-house AVC fund part of the maximum tax free cash from
your total pension pot.
This means you may be able to give up less or even none of your annual pension from your standard
benefits to receive maximum tax free cash.
If you want to have details of the options available to you before you make a decision about your in-
house AVC fund, please tick the third option in this section. We will send you details after getting the
information about the current value of your AVC from the provider.

Section 5       Other pensions and compensation

HMRC introduced a Lifetime Allowance, with effect from 6 April 2006. If the value of your total
benefits exceeds this allowance, you will have to pay tax on the excess. The Lifetime Allowances for the
next three tax years are as follows.
     Tax year         Lifetime Allowance
    2010/2011             £1.8 million
    2011/2012             £1.8 million
    2012/2013             £1.5 million*
Although most people’s benefits will not exceed these limits, HMRC rules require us to assess whether
your total benefits will exceed the Lifetime Allowance. If your benefits will exceed the allowance, we
will apply tax charges to any pension and lump sum to which you are entitled under the Police schemes.

       From 6 April 2012, the lifetime allowance is being reduced to £1.5 million.

If you are a higher earner and could have benefits in excess of the Lifetime Allowance then
please send a copy of the certificate issued by HMRC which protects your benefits before 6
April 2006.

Section 5.1
Please provide details of any pensions that will:
   have a starting date before your PPS or NPPS benefits
   have a starting date on the same day as your PPS or NPPS benefits.

You should not declare:

   benefits payable under the state pension scheme, including state pension credit
   benefits to which you are entitled as the widow(er), surviving civil partner or other dependant of a
    member of any pension scheme
   benefits that will be payable after your PPS or NPPS pension starting date.

Section 5.2
If you have any other benefits becoming payable on the same date as your PPS or NPPS benefits,
please state the order in which you want them assessed against the HMRC Lifetime Allowance. The
order you choose is important because it will decide which schemes:
   will be responsible for settling any tax liability if you exceed the Lifetime Allowance
   must take the value of the others into account when assessing the total value of the Lifetime
However, the order you state will not affect the total amount of any tax you pay. Your other pension
providers will be able to tell you the percentage of Lifetime Allowance your other pensions are using
If your benefits exceed the Lifetime Allowance, the tax charge will be 55% of the excess lump sum and
25% of the excess pension (plus any PAYE deductions).
If HMRC has sent you a certificate under ‘transitional protection’ rules, you should give your pension
administrators a copy when any pension benefit (including a Police pension) is due. When they assess
the value of your benefits against the Lifetime Allowance, the administrators will take account of the
protection offered by the certificate.
Section 5.3
Please give details of any transfers of pension rights to overseas pension arrangements on or after 6
April 2006. This should include the value of your crystallised benefits against the lifetime allowance.

Section 6      Declaration

Once you have completed all the sections of this form, please complete and sign the declaration and
return the form to the address shown, together with all relevant certificates.
Please ensure you send evidence of any name change that will allow us to verify your identity (we
cannot pay your benefits if you only send a birth certificate but you no longer use your maiden name).

If you intend to use part or all of your retirement lump sum to pay additional contributions to a
pension scheme, or to any other pension arrangement, this is known as ‘recycling’ and special tax rules
may apply. If you break the recycling rules, you will have to pay a tax charge of 40% to 55% of the
value of your retirement lump sum.

You can find guidance on recycling on the HMRC website:
                                       Police Pension Schemes
                                   Hampshire Pension Services

Retirement declaration form
Please complete all sections of this form and return it as soon as possible to the address
shown on the last page, enclosing all relevant certificates.
We can pay your benefits only after receiving your completed form and
all relevant certificates.

Section 1       Personal details

Name                                                              Title

Postcode                                      Telephone
National Insurance no.                                              Date of birth

Collar / Warrant Number

Reason for leaving

Date of retiring/leaving

Requested start date for payment of pension
(only if claiming deferred benefits)

If you are claiming early payment of your deferred benefits, the requested date of payment above should
be at least six weeks from the date you complete this form to give us adequate notice of your request.

Section 2       Bank or building society account details

Please complete the details below to tell us where you would like us to pay your pension and any
retirement lump sum.
Name of bank/building society
Sort code                                          -                      -

Account holder’s name
Account number

If building society, roll number

Branch address and postcode

Signature                                                                     Date

                                                                                               Form – page 1 of 4
Section 3       Marital status / civil partnership

Please complete and tick the appropriate boxes and enclose all relevant certificates.

What is your status?
I am single and have never married                   I am legally separated
I am married                                         I have a civil partner
Enter the date of marriage / civil partnership:

I am a widow/widower                   My civil partnership has been                I am divorced
Enter the date of death of spouse / divorce / dissolution or revoking of civil partnership:

NPPS only - I have previously completed and returned the ‘Nomination of co-habiting
partner’ form or I am doing so now. (Please note, the option to make a nomination applies
only to members of the NPPS).

Section 4 Giving up part of your pension to receive a retirement lump sum

4.1     Do you wish to give up part of your annual pension to receive a tax-free lump sum?

Please tick one of the following three options.
1.    I do not wish to give up part of my pension to provide a lump sum
2.    I wish to give up the maximum of my pension to provide a lump sum and pay the tax
      rate of 55% on the excess over the maximum 25% of the Lifetime Allowance
3.    I wish to take the lump sum up to the 25% tax-free limit thereby avoiding the tax charge
      of 55%
4.    I wish to take the maximum lump sum and not pay the 55% tax charge on the excess
      amount and I will notify HMRC on my self-assessment return
5.    I wish to give up the following percentage of my pension to provide a lump sum (i.e. less
      than 25%)                 ……………………..%
6.    Please send me an estimate* of my benefits before I make a decision

* Important – for us to give you an estimate we need information from your employer. We will
process your request as soon as we can, but your retirement benefit payments may be delayed if your
employer delays sending us that information.

                                                                                                    Form – page 2 of 4
4.2      Do you have an AVC fund?             No           Please go to Section 5
                                              Yes        *      * Standard Life       *Equitable Life
If yes, please tick one of the options below:
1. I wish to use my AVC fund to maximise my overall tax free lump sum
2.    The amount of my AVC fund I wish to use to increase my lump sum is £…………
3.    Please send me details of the options available for my accumulated in-house AVC fund
      (this may delay payment as we need to get information from the AVC provider).
Important notice about AVCs
If you opt to receive any of your AVC fund as a cash lump sum, we will not be able to put any of your
pension benefits into payment until we receive the final cheque from the AVC provider.
If you continue to make payments into your AVC fund in your last month of employment, we may not
be able to process any of your benefits for up to six weeks after you retire.
We will not be able to put any benefits into payment until we receive your decision about your AVC in

Section 5       Other pensions and compensation

5.1   Do you have any other occupational or personal pension benefits that will be payable before the
      day your PPS or NPPS pension starts or that are already in payment?
      (Do not include any state pension, spouse’s, civil partner’s or dependant’s pension you receive.)
      Yes        Please give details below:       No           Please go to Section 5.2.
                                                                                          % of
                                        Date pension was          Current amount of
Pension provider                                                                          Allowance
                                        payable from              annual pension
                                                                                           (if known)

5.2      Do you have other pension benefits becoming payable on the same date as your Police pension?

         Yes                                        No         Please go to Section 5.3.

      If yes, please give details below and state the order in which you want them to be assessed against
      the HMRC Lifetime Allowance:
                                                Amount of annual pension Order in which you
Pension provider                                and lump sum due                 want them to be

5.3      Have you transferred any pension rights to an overseas pension arrangement after 5 April 2006?
         Yes                                           No
If yes, please give details below, including the amount of crystallised benefits:

                                                                                               Form – page 3 of 4
      Section 6          Declaration

Once you have completed sections 1 to 5 of this form, please read the following statements
carefully and ensure you fully understand them. Then sign the declaration below.

If you have any questions, please phone us on 01962 845588 or email pensions@hants.gov.uk.

 I have read the accompanying notes and completed this form. All the information I have given on
  this form is correct and complete to the best of my knowledge.
 I will not use my retirement lump sum to make contributions to one or more registered pension
  schemes, in breach of HM Revenue and Customs (HMRC) recycling rules (see section 6 of the
 I understand that the decisions I have made on this form cannot be changed once Pensions
  Services has received and processed the form.
 If further tax becomes payable because the information I have given proves to be wrong, I
  understand that I will be liable to pay the tax charge and any resulting penalty that HMRC may

I have:

   provided all the necessary information and completed all sections
   signed section 2 to certify that my bank details are correct
   enclosed the following certificates (clear photocopies are preferable to original certificates):

       My birth certificate or clear photocopy of my passport              My marriage certificate
       My civil partnership certificate                                    My decree absolute
       My civil partnership dissolution certificate                        My judicial separation
       Other documentation (please specify)
Please ensure that the enclosed documentation supports any change of name that you have had
(if you no longer go by your maiden name you need to send documents as well as your birth
certificate as we cannot pay your benefits without official verification of your current identity).

Signed                                                                   Date

Please return your completed form, enclosing any certificates, to:
Pensions Services Section
County Treasurers
The Castle
Hampshire SO23 8UB
We will return original certificates.

     Hampshire County Council complies with the Data Protection Act 1998 and will use your data
     only for processing your pension rights

                                                                                                       Form – page 4 of 4

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