news pensioner issue 2 by yantingting


									Primetime                                                  Winter 2009
                                                                Issue 2

                                                     is safe
                                                          See page 4

Pension fund newsletter for retired members

                                 Norfolk Pension Fund Newsletter 2009   1
Useful information                                  Hello and welcome...
                                                    to this latest edition of the Norfolk Pension Funds magazine for
Your name                                           retired members. Your magazine now has a name – “Prime Time”.
                                                    Congratulations to Mr Tony Newson who suggested the new title,
Your National
                                                    voted most popular at last years Retired Members Week events.
Insurance number
                                                    As well as the usual mix of stories to help you plan your affairs, I am
Norfolk Pension Fund               01603 495788     delighted that we have been able to include a couple of features
                                                    sent in by retired members. Thanks to everybody who sent in ideas
State Pension                      0845 6060 265    – do please keep them coming. Remember this is your magazine
Other organisations you might want to be notified   and we want to hear from you. There is a £10 M&S voucher for every
                                                    story that we use.
                                                    As usual, there is quite a lot to take in, so if you need to know more,
Building Society                                                   you are very welcome to call our pensions payroll
                                                                     team on 01603 495788.
Local Council
                                                                     I hope that you enjoy this issue.


Tax Office                                                                      Nicola Mark
                                   0845 3667851                                   Head of the Norfolk Pension Fund
Insurance policy


Credit card
                                                            The Norfolk Pension Fund, 4/5th floor, Lawrence House
Gas                                                                 5 St Andrews Hill, Norwich NR2 1AD
Electric                                                                       01603 495788

                                                                      We thank the Greater Manchester Pension
                                                                      Fund for their help with this newsletter.
2   Norfolk Pension Fund Newsletter 2009                                                         Norfolk Pension Fund Newsletter 2009   3
Your LGPS Pension is safe                                                         ‘Your benefits are
These days, it’s hard to                    Three yearly health check              not affected by
                                            Every three years the Fund has a
turn on the TV, open a
                                            ‘health check’ - where an outside      the value of the
newspaper, or browse                        specialist examines the value of
the web, without finding
                                            its assets (its investments and        pension fund…’
                                            future income) and the extent of
endless stories about                       its liabilities (what it has to pay
                                            out now and in the future).
the recession, the credit
                                            This process is called a valuation,
crunch, and the crisis in the               and this is how we make sure that
financial markets. These                    we always have enough money
                                            to cover your pensions, now and
are very difficult times.                   into the future. Contributions
                                            from Employers are adjusted as a
Understandably, many of you                 result of this exercise.
may be worried that this might
                                            Your pension scheme was
affect your Local Government
                                            created by statute and is backed
Pension Scheme (LGPS) pension.
                                            by Government. This means that
Please don’t worry – your LGPS              your pension is well protected
pension is safe and guaranteed.             and guaranteed.
How benefits are worked out                 A good track record
Your pension benefits in the LGPS           The Local Government Pension
are based on your final pay and             Scheme was created in 1922
membership when you finished                and over the decades has seen
work.                                       huge swings in the value of
Because of this, your benefits are          investments markets, both up
not affected by the value of the            and down.
Pension Fund, which goes up and             The recent ups and downs
down as it receives contributions           do not affect our ability to
and pays benefits, and as                   pay pensions. So you can rest
investment markets rise and fall.           assured that your pension is
 4   Norfolk Pension Fund Newsletter 2009                                                          Norfolk Pension Fund Newsletter 2009   5
We all love                                        Investigation in progress
a good story
                                                   Sometimes we make a payment of someone’s pension after they’ve
                                                   died, simply because we aren’t informed in time. But in a small number
                                                   of cases, we have discovered family members fraudulently claiming
                                                   someone’s pension after they’ve died.
                                                   To detect this type of activity, we take part in something called the
                                                   National Fraud Initiative (NFI). It matches the records of all public
                                                   sector pension schemes like ours, to the Department for Works and
If you have one why not share it with us in your   Pensions database.
Primetime magazine. We’re interested in all
sorts - maybe you’ve become a wiz on               This then highlights cases where pensioners have died, and someone
computers, or you’ve been travelling               else has wrongly carried on claiming the money - all cases identified
or have a favourite recipe you                     are investigated and sometimes this involves the police.
would like us to try.                              But it isn’t just about picking up payments we shouldn’t be making -
Don’t be shy - pick up your pen                    it can also help identify payments we should be making but aren’t.
and paper, or start tapping that                   For example there are sometimes cases where the main pension
keyboard, and drop us a line - if                  holder has passed away but a pension for a dependant such as a
we feature your story, we’ll send                  husband or wife hasn’t been set up.
you a £10 Marks & Spencers
Voucher.                                                                           Nothing to declare?
Please send your stories to:                                                       Another aspect of the NFI exercise
The Norfolk Pension Fund,                                                          is to prevent fraudulent claims for
4/5th floor, Lawrence House,                                                       housing benefit or other payments.
5 St Andrews Hill,                                                                 So remember, if you claim anything
Norwich NR2 1AD, or                                                                like this, you must tell them you draw
e-mail: jo.quarterman@                                                             a pension from us, as they may have                                                                     to take its value into account.
                                                                                   Remember - the authorities take
                                                                                   fraud very seriously, and anyone
                                                                                   committing such a crime will be
                                                                                   asked to pay the money back, and
                                                                                   may face prosecution.

 6   Norfolk Pension Fund Newsletter 2009                                               Norfolk Pension Fund Newsletter 2009   7
                                                                            Pension Payment dates for 2009
Pensions up 5% this time
As prices in the shops go up, it’s good to know your NPF
                                                                            We always pay your pension in arrears on the last traditional
                                                                            working day of the month.

pension keeps pace...                                                       In 2009 pensions will be paid on the following dates...
                                                                            January                Friday 30 January
                                                                            February               Friday 27 February
                                                                            March                  Tuesday 31 March
                                                                            April                  Thursday 30 April
                                                                            May                    Friday 29 May
                                                                            June                   Tuesday 30 June
                                                                            July                   Friday 31 July
                                                                            August                 Friday 28 August
Your NPF pension is increased by exactly the same as the rise in the        September              Wednesday 30 September
Retail Price Index (RPI) as at September of the previous year (so this
year, as at September 2008). Last years increase applied from the 7th       October                Friday 30 October
April 2008, so would have been reflected in your pension payment in         November               Monday 30 November
April. This years increase (5%) will apply from the 6th April 2009.         December               Thursday 31 December
What if I’ve not been on pension long?
If your pension began on or after 7 April 2008, then it will be increased   Not all retired members receive a printed payslip each month any
by a proportion of the full amount. So to give you the general idea, if     more. For those of you that still do, as we have talked about before, we
you’ve been on pension for six months, you’ll get half the full increase    plan to reduce the number of payslip we print and post each month.
– in other words 2.5%.                                                      These changes will come in later in the year. Instead of sending you a
                                                                            printed payslip each month, we will only send you a payslip when the
If you are a retired member who is under 55, you will have to wait          amount being paid to you varies. Please don’t worry about this – we
until 55 for your pension to go up, unless you retired through ill          will write to you before we make any changes, and you will have the
health.                                                                     option of still receiving a printed payslip each month.
Do you have a GMP?
If you were a member before 6 April 1997 and you have reached
State pension age, your pension from us has to be at least as much
as something called the guaranteed minimum pension or GMP.
The figure is set by the Department for Work & Pensions, and they
will normally pay all or part of the increase on the GMP part of your
pension from us.
 8   Norfolk Pension Fund Newsletter 2009                                                                        Norfolk Pension Fund Newsletter 2009   9
                                  New job?                                     Abatement
                                                                                Question: What is abatement?
                                  Please remember, you must tell us if you
                                                                                Answer:    Within the Local Government Pension Scheme (LGPS)
                                                                                abatement is the term we use if we reduce or suspend pension
                                  get another job with any employer who
                                                                                payments for a period when:
                                  offers membership of the LGPS - whether
                                                                                • A pensioner of the scheme is re-employed with an employer, and
                                  or not you join the Scheme. In some
                                                                                • Is able to join the LGPS as an employee, and
                                  cases, working for this type of employer
                                                                                • Their new pay and pension together add up to more than their
                                  may affect some peoples pensions. If you
                                                                                  final salary when they retired.
                                  think that this may apply to you, there is
                                  more detail in the article on abatement      Like all Pension Funds, the         under completely separate
                                  on the following page.                       Norfolk Pension Fund has to         regulations.
                                                                               have a policy on abatement.         • Added Years will continue to
                                                                               Our policy is regularly reviewed,   be monitored and abated if
                                                                               in consultation with the            necessary. Retired members who
                                                                               employers of the Fund. At the       have any added years will receive
                                                                               last review, the Pension Fund       a letter confirming their adjusted
                                                                               “Trustees” changed the policy on    earnings limit (i.e. excluding the
                                                                               abatement.                          main scheme local government
                                                                               The new policy is that abatement    pension) and will continue to

Changing your bank?                                                            is no longer required in any case
                                                                               of further employment with any
                                                                               employer who gives you the
                                                                                                                   receive yearly assessment letters.
                                                                                                                   Nobody will receive less
If your bank details change, your bank or building society                     right to join the LGPS. It is not
                                                                                                                   pension as a result of this
may not tell us, so please make sure you do! Please note                       entirely that straightforward for   change in policy.
we cannot take bank changes over the phone, so you will                        all members however…                We will write to you if you are
need to drop us a line or call in at our offices. Payroll is                   • This policy only covers pension   a re-employed retired member
usually run around the middle of the month, so please let                      paid on LGPS membership paid        affected by this change. This
us know in good time or it might delay your payment.                           for or service transferred into     may take a little while as we go
                                                                               the Local Government Pension        through all the cases affected.
                                                                               Scheme at the date of your          If you have any concerns or
                                                                               retirement. It does not cover       questions in the meantime
                                                                               compensatory added years,           please don’t hesitate to call
                                                                               which are awarded and paid          our Retired Members Pensions
                                                                                                                   Support Team on 01603 495788.
10   Norfolk Pension Fund Newsletter 2009                                                                          Norfolk Pension Fund Newsletter 2009   11
State Pension Centenary                                                      Today this basket could be bought at a major
                                                                             supermarket for £19.15...
                                                                             • 5 large loaves of bread     £5.00
                                                                             • 250g tea                    £1.28
The 1 January 2009 marked 100 years since the first pensioners went
                                                                             • 500g white sugar            £0.48
to the Post Office to collect a State Pension of 5 shillings a week. In
                                                                             • 500g cheddar                £3.38
1909 half a million people over 70 got a State Pension for the first time.
                                                                             • 2.5k potatoes               £1.98
It’s an opportunity for us to salute the pension pioneers whose vision
                                                                             • 1k Value stewing steak      £4.49
gave this country a vital base for our later years.
                                                                             • 7 pints whole milk          £2.54
The Government have produced some interesting documents and
                                                                             100th Anniversary of the State Pension Statistics
facts to mark the occasion. You can see from the documents how
                                                                             The percentage of the generation who survived to State Pension Age
different today’s pension is to the one of 1908, and that we face
                                                                             • 1908 = 24%
new challenges. We live longer and want more from those years. For
                                                                             • 2008 = 84%
example, in 2063, we should have our first 120 year old. This means
                                                                             • 2018 = 86%
she is already 65 and drawing her state pension. She will do so for half
her life. Who knows, she could be one of our retired members…
                                                                             Life expectancy at State Pension Age
                                                                             • 1908 = 9 years
We thought that you might enjoy some of the facts and figures they
                                                                             • 2008 = 25 years
have produced ... if you would like to know more, have a look at the
                                                                             • 2018 = 24 years*
Department of Work and Pensions website at
mediacentre/pensioncentenary .                                               *Life expectancy at State Pension Age decreases
                                                                              slightly between 2008 and 2018 because State
Then and now                                                                  Pension Age for women will have increased
In real terms, the basic state pension is worth around four times more        from 60 to 64.
today than the amount received in 1908. One way of looking at it is to
consider what basket of goods the state pension bought in 1908 and
how much today’s pensioners would spend on the same.
The full pension in 1908 was 5 shillings, which would buy...
• 5 large loaves of bread      1s. 0d
• Half lb of tea                 10d
• lb of sugar                      2d
• lb cheese                        8d
• 7lbs potatoes                    3d
• 2lbs meat (cheap cuts)       1s. 1d
• 7 pints milk                 1s. 0d

 12   Norfolk Pension Fund Newsletter 2009                                                                      Norfolk Pension Fund Newsletter 2009   13
Latest news from Pat Bullock,
Manager of your Pensioner Payroll Support Team...
We hope that you have found this edition of Prime Time
interesting and useful. During the year, there have been some
changes to the team that are here to support you.                            This recipe was sent in by Ron Britton, who worked for Norwich
                                                                             City Council for over 40 years. He says, “Here is a cheap and
Both Andrea and Elaine were promoted to other areas of Pensions,
                                                                             simple ‘winter warmer’ recipe.”
and two new team members (James and Sandra) recruited to join
Paul, Jane, Shenda and I. The new team is settling down well. Sandra         Let us know how you get on if you make it, or maybe you have a
says, “It has been great joining this team and being part of the             favourite recipe you would like to pass on? If so, drop us a line to:
payroll side of business. The work is varied and enjoyable and along         The Communications Team, Norfolk Pension Fund,
with my colleagues, I look forward to providing help and assistance          4th floor Lawrence House, 5 St Andrews Hill, Norwich, NR2 1AD
to all our members.”                                                         or e-mail:
Do look out for Sandra and James, and the rest of the team, at this
                                                                             Ingredients (to feed 4 people)
year’s Retired Members events.
                                                                             •   2 lb (900 g) peeled and sliced potatoes
Please remember that we are here to help you with any concerns               •   1 lb (450g) sausage meat, rolled into small balls (or skinned
or questions you may have about your Local Government Pension                    sausages cut into bite size pieces)
Scheme pension – you can contact us on 01603 495788.                         •   ½ lb ( 225 g) peeled and sliced tomatoes
                                                                             •   1 apple peeled and sliced
Best wishes, Pat                                                             •   1 onion peeled and sliced
                                                                             •   1 tablespoon plain flour
                                                                             •   Stock or water
                                                                             •   Salt and pepper to taste

                                                                             1. Dip the sausage into the flour seasoned with salt and pepper.
                                                                             2. Arrange a layer of sliced potatoes in the bottom of an
                                                                                earthenware casserole.
                                                                             3. Cover with a layer of sausage followed by a layer of apples,
                                                                                tomatoes and onions.
                                                                             4. Repeat the layers, finishing with potato.
                                                                             5. Fill three quarters full with stock or water.
                                                      Pat (right) with new   6. Cover tightly, and bake in a moderate oven
                                                      team members
                                                                                (180 or gas mark 4) for approximately 2 hours.
                                                      James and Sandra.

 14   Norfolk Pension Fund Newsletter 2009                                                                       Norfolk Pension Fund Newsletter 2009   15
                           Accounts and investments
                     Here is a summary of the Norfolk                    The Pension Fund’s money is invested with nine fund managers, who
                                                                         each specialise in an asset type, such as UK shares, overseas shares,
                     Pension Fund accounts and                           property, etc, as shown below. The aim is to have a mix of assets that
                                                                         provides the maximum return while managing the risk to the Fund
                     investments...                                      – or to put it another way, we try not to put all the eggs in the same
Accounts                                                                 basket! (Two currency managers, Goldman Sachs International and
Our full accounts for 2007/8, and also our Statement of Investment       Auriel Capital Management, were appointed with effect from April
Principles, which includes details of our Socially Responsible           2008 and will therefore appear in next year’s accounts.)
Investment and Corporate Governance activities, can be downloaded        As at 31 March 2008, the manager holdings were as follows:
from our website: . If you would like a paper                                       Harbour Vest Partners,
copy, please contact us on 01603 222824.                                      Standard Life Investments,   Private Equity 1.3%
                                                                              Private Equity       3.0%               Northern Trust Global Funds,
                                            2006-07         2007-08                                                   Cash                   0.3%
                                              £000’s          £000’s   Aberdeen Asset Management,
                                                                       Government and                                        Henderson Global Investors,
Opening net assets of the scheme          1,736,327       1,891,261    company bonds        10.1%                            Government and
Employees’ contributions to the fund          23,556          25,032                                                         company bonds        8.7%
Employers’ contributions to the fund          72,159          68,812     Baillie Gifford & Co,                                         Fidelity Pensions
Transfer Values Received                      15,499          14,866     Shares in UK                                                  Management,
                                                                         companies 12.6%                                               Shares in overseas
Payments to pensioners and dependants        -69,162         -73,003
                                                                                                                                       companies 19.5%
Transfers out and other payments to leavers -5,754            -6,366
Advisor fees and general administration costs -1,686          -1,959
Net investment return – including income
and the change in value of investments       120,322         -75,726       Alliance Bernstein,
Closing net assets of the scheme          1,891,261       1,842,917        Shares in UK
                                                                           companies 12.6%

                                                                                                            Capital International Limited,
                                                                           Morley Fund Management,          Shares in overseas companies 17.3%
                                                                           Property          14.6%

 16   Norfolk Pension Fund Newsletter 2009                                                                      Norfolk Pension Fund Newsletter 2009   17
Taxing times
In the Chancellor’s pre budget report in 2007, he announced some
changes to the way income tax works from April 2008, as well as the
usual changes to the personal allowances.

 Personal allowance                                £5,435 a year
 (increased from September 2008)                   £6,035 a year
 Personal allowance for people aged 65-74*         £9,030
 Personal allowance for people aged 75 and over* £9,180
 * There is an income limit for these age related allowances of
   £21,800 a year. This means that the allowance will go down
   by £1 for every £2 of income above the limit.

There are also other allowances, such as the married couple’s               Here’s an example assuming ‘Joan’ will pay tax at 20%
allowance, and blind persons’ allowance but these don’t apply to
everyone - please ask the Tax Office (HMRC) if you need more details.       Joan is 66 and has a State pension of just over £80 a week (£4230 a
                                                                            year), and has a pension from the Norfolk Pension Fund of £500 a
Working out your tax                                                        month (£6000 a year).
So now to the crunch... if your income is above your allowance, how         She has no other taxable income, so the total the HMRC will look at
much tax will you pay?                                                      is £10,230...
Last year, the Chancellor surprised many people by announcing a cut         Income for tax purposes: £10,230
in the basic income tax rate from 22% down to 20%. This may sound           Age related allowance: £9,030
like good news, but when you dig a little deeper, you see that as part      Taxable income:          £1,200
of the changes, the starting band of 10% disappears (this was the rate      Now the 10% band is scrapped, Joan will pay tax at 20% on this
that applied to the first £2230 or so).                                     £1,200, in other words:
Remember, it’s your tax code which tells us how much tax to take            Taxable income:          £1,200
from you, if any. And as these changes only came in from 6 April 2008,
                                                                            Tax due:                 £1,200 x 20% = £240 a year (£20 a month)
they only applied from your May pension. And by the way, we
don’t generate your tax code, it’s the HMRC. If you think that there is a   To see the answers to some of the most frequently asked
problem with your tax code, HMRC’s details are on page 16.                  questions on tax please turn over the page.

 18   Norfolk Pension Fund Newsletter 2009                                                                     Norfolk Pension Fund Newsletter 2009   19
                                           uently asked
                Tax                    Freq
Q I have received a form P2 Notice of coding what should I do?
                                                                        Keep in
A Nothing! HMRC (Her Majesty’s Revenue and Customs) will inform
  us directly of your new code.

Q I think I’m paying too much tax, who should I contact?
A HMRC, Youfor the fund. (You can findInsuranceyour P60.)and PAYE
               will need your National
                                        both on

Q I’m a pensioner, should I be paying tax?
                                                                        with us!
A If yourtoincome isThe amountyourtax you payallowance then you
  have pay tax.
                     more than
                                              is calculated on all
      your income, including your pension(s) See pages 18 and 19 for
      details of this year’s personal allowances).

Q How is my tax code calculated?
                                                                        Please remember to keep us in the picture
                                                                        if you move house, or if this newsletter

A Yourshould check this carefully and contact code isifcalculated, it
                                                                        didn’t come to the right address.
       P2 Notice of coding shows how your
  you                                         HMRC you think            You can do this by phone, by fax, by email,
      is wrong.                                                         or by post (but preferably not by bottle).
If you would like help understanding your Notice of coding before       See back cover for all our contact details.
contacting HMRC, please call us on 01603 495788.
                                                                        You are also very welcome to call at our
                                                                        Norwich offices - our opening hours are
                                                                        shown below:
                                                                           Monday to Thursday:           8.45am - 5.00pm
                                                                           Friday:                  8.45am - 4.00pm
 Telephone 0845 366 7851
 Open 8am - 8pm, 7 days a week                                             Our phone lines are open until 5.30pm Monday to
 Please quote your National Insurance number and                           Thursday and until 4.30pm on a Friday
 reference 531/N3722P
 or their web address:

 20   Norfolk Pension Fund Newsletter 2009                                                                   Norfolk Pension Fund Newsletter 2009   21
  Norwich-Dedza Partnership                                                         School at Norwich City College
                                                                                    is assisting the development of
                                                                                                                        Volunteers can help with
                                                                                                                        fundraising. People with useful
                                                                                    tourism. The Partnership wants      skills can visit Dedza and carry
  Africa beckons some                                                               to help with vocational and other   out projects for two weeks or
  members of the Norfolk                                                            training for young people in        longer.
  Pension Fund. Sue Norgrove,                                                       Dedza who have no employment.       To find out more about the
  who was a manager for                                                             The Partnership welcomes all        Norwich-Dedza Partnership,
  Norfolk Children’s Services,                                                      forms of support. Financial         see the website
  and Nick Nicholson, who                                           Sue at rock     donations are needed for  
  worked for Norwich City                                          painting site    bursaries and other work.
  Council, are trustees of a local
                                                                                    A good news story...
                                               sports kit, etc that were
  charity that supports Dedza                  donated by councils, schools
  District in Malawi.                          and individuals in Norfolk.           The following article was sent     Physiotherapist encourages you
                                               These items are used in local         in by Helen Johnson. Helen had     to “just walk along the corridor
  The work of the Norwich-Dedza
                                               government offices, the hospital,     to undergo surgery a while ago,    with these crutches”. However, a
  Partnership is carried out by
                                               schools and community groups.         and was quite nervous before       few weeks later as you progress
  individuals and organisations in
  and around Norwich. In Malawi,               There is a Bursaries Fund to pay      hand. She hopes that her           from two sticks to one stick to
  projects are co-ordinated                    the school fees for secondary         experiences may encourage          a tentative walk with no sticks,
  through the local government                 school students whose families        someone else.                      you suddenly realise that you
  council for the area, the Dedza              are subsistence farmers with          Helen writes...                    are back to normal. You might
  District Assembly.                           no income. Schools in Norfolk         As time goes by it’s not only      need to build up your distance
                                               and Dedza have been linked so         our cars that start to wear out.   gradually but when you are
  There are several strands to                                                                                          retired what else is there to do
                                               that pupils can learn about each      I recently had to have a hip
  the work. The Partnership has                                                                                         but have lots of little practise
                                               others’ lives. Volunteer visitors     replacement operation and
  sent shipping containers with                                                                                         walks round the block? It’s a
                                               carry out short teacher training      want to encourage anyone who
  computer equipment, school                                                                                            good way to meet all those
                                               sessions.                             is doubtful about the process to
  books, tools, sewing machines,                                                                                        neighbours you have never
                                               The Partnership raised funds          get it done.
                                                                                                                        spoken to before!
                                               that enabled the Dedza District       The worst part is the night
                                               Assembly to renovate a run-down       before the operation when          Six months on and you are
                                               hostel used by people looking         you want to sneak out of the       taking the dog out, driving
                                               after their relatives who are         hospital and go home and carry     around in the car and feeling
                                               patients in the local hospital.       on with your walking stick.        like a new person. So, if you’re
                                                                                     Two days after you also wish       dithering, Go on! Be Brave!
greets young                                   Easton College is helping with
                                                                                     you had never bothered as the      Say “Yes”!
Malawian                                       agriculture projects and the Hotel
   22   Norfolk Pension Fund Newsletter 2009                                                                            Norfolk Pension Fund Newsletter 2009   23
Can we
help you?
The Norfolk Pension Fund
5th Floor Lawrence House
5 St Andrews Hill
Norwich NR2 1AD

         01603 495923
         Please have your National Insurance number handy
                                                            G21356 CB 1/09

   Printed on recycled paper using vegetable based inks

        If you would like this magazine in large print,
        audio, Braille, alternative format or in a different
        language, please contact Doreen Metcalf on
        01603 222 824 (minicom 01603 223 833).

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