Each year we increase pensions in line with the Pensions Increase (Review) Order (Northern Ireland). The increase applies to you whether you are a Scheme pensioner or a dependant in receipt of a pension.
Please note – pensioners under age
55 and those who retired through ill-health but who are not permanently unfit
for all work are not entitled to an increase until they reach age 55.
The rate of pensions increase from 6th
April 2010 is 0%.
This means that all pensions in payment from NILGOSC will continue to be paid at the same rate as the March 2010 payments.
If your April payment is at a different rate than your March payment, this may be because of a change in your tax code. Queries regarding tax deductions or code amendments should be directed to HM Revenue and Customs, Northern Counties Area, Foyle House, Duncreggan Road, Londonderry, BT48 0AH quoting Tax Reference 916/G82576 and your own Pension Reference Number. The telephone number is 0845 302 1481.
The Pensions (Increase) Act 1971 provides
for cost of living increases which apply to public service pensions. Each
year in April, in line with the Pensions Increase (Review) Order, NILGOSC
increases your pension to reflect rises in the cost of living.
The Pensions Increase applied in April is normally
based on the increase in the Retail Prices Index (RPI) during the twelve months
to the September of the previous year. However,
the RPI for September 2009 was 1.4% lower
than the previous September’s figure.
A government announcement in December 2009 confirmed that there would be no increase to public sector occupational pensions in April 2010. Therefore, your pension from NILGOSC will not be increased this year and will continue to be paid at the same rate as last year.
Will
I get a Pay Advice for April 2010?
You will receive a pay advice in April 2010 but there will be no issue of pay advices for May 2010 as the pension rate remains unchanged. We will continue to issue pay advices in any month where there is a change in your pension of £1 or more.
Your P60 will be enclosed with your April
2010 payslip and will give you details of the pension that we paid to you and
any tax that has been deducted in the tax year 2009/2010 (the previous tax
year).
You may notice on your P60 that the actual amount paid is slightly less than your annual rate of pension. This is because the increase is not paid from the 1st of April each year; it only becomes effective from the first Monday falling after the 5th of April each year (i.e. 6 April 2009). This is the reason that the increase date varies from year to year.
Will my State Pension be increased?
Basic
State Pension does not fall under the Pensions Increase rules.
A 2.5% increase will be applied to your basic
State Pension as already announced by the Government.
The State Earnings Related Pension Scheme (SERPS) / the State Second Pension (S2P) and Guaranteed Minimum Pensions (GMPs) are governed by the same Pensions Increase rules as your NILGOSC pension and will receive a zero increase.
State Pensions are not paid by NILGOSC. They are paid by the Social Security Agency who can be contacted at 0808 100 2658 if you have any queries.
The LGPS (NI) (the Scheme) is
contracted out of the State Second Pension Scheme, previously known as the
State Earnings Related Pension Scheme (SERPS). As a condition of
contracting out for service before 1997, the Scheme had to guarantee that the
pension benefits payable would be no less than a GMP. If you, or your
deceased spouse, participated in the Scheme between 6 April 1978 and 5 April
1997 you will have earned a GMP.
This GMP is not a separate benefit
paid in addition to your Scheme pension but the pension we pay you must equal
or exceed your GMP.
HM Revenue and Customs work out the level of your GMP. Your GMP comes into force normally when you ask for your State Pension to be paid to you. (There are circumstances when the GMP comes into force at a later date but the effect on your Scheme pension is the same).
What effect does the GMP have on the pension which NILGOSC
pays me?
When your GMP comes into force, the
National Insurance Contributions Office (NICO) tells NILGOSC the amount of your
GMP. NILGOSC then adjusts its records to reflect the fact that the
Government now pays some of the annual pensions increase on the GMP element of
your Scheme pension along with your State Pension. Depending on whether
you have pre-April 1998 GMP, post-April1988 GMP or a mixture of both types of
GMPs, the increases must be paid by either NILGOSC or the Government or a split
between both NILGOSC and the Government. However, the overall increase in
your total pension i.e. Scheme pension plus State Pension should be the annual
Pensions Increase amount.
Every year NILGOSC will calculate
the increase relating to your pension, however we may have to do so before NICO
has notified us of your GMP details. If this happens we may have to increase or
reduce later pension payments to adjust for any overpayment or underpayment. We
shall of course notify you in advance before doing so.
As the increase to be applied to both your NILGOSC pension and any GMP entitlement is zero this year, your pension will remain at the same rate you were paid in March 2010.
Who
should I contact if I have any further questions?
Should you wish to discuss any item relating
to your Pension Increase please contact the Payroll Team on our Direct Line
0845 308 7343 or email us at info@nilgosc.org.uk.
Please remember that our busiest times are on
a Monday morning when we deal with very high volumes of calls. You may find it easier to speak to us later
on in the week when the number of incoming calls decreases.