PENSIONS INCREASE 2012

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.  

The increase applies to all NILGOSC pensioners apart from those who have not yet reached the age of 55 and retired on redundancy or business efficiency.  A few ill-health pensions do not receive pensions increase until the pensioner reaches age 55.

The rate of pensions increase from 9 April 2012 is 5.2%.

If your April payment is lower 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 300 0627. If you are calling from abroad use telephone number 0044 135 535 9022.

What is Pensions Increase and how much will it be?

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. 

Pensions which have been in payment for a full year will be increased by 5.2% from 9 April 2012 in line with the September to September increase in the Consumer Price Index.

If you only went on to pension during the previous tax year then you are entitled to a proportionate percentage increase depending on the number of months it has been in payment.  If you commenced pension on or after 25 March 2012 then you will receive no increase for this year.

Will I get a Pay Advice for April 2012?

Your next payment in May 2012 will show you the full increase for the whole month; this rate applies for the rest of the year. Everyone receives a payslip in May of each year. The monthly rate will remain the same as long as your annual rate of pension remains unchanged and your Tax Code remains unchanged. 

Please note that you will not receive a payslip in any other month unless your pension changes by £1.00 or more, or if you have specially requested a payslip each month.

When will I receive my P60?

Your P60 will be enclosed with your April 2012 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 2011/2012 (the previous tax year).

Will my State Pension be increased?

A 4.6% increase will be applied to your basic State Pension from Monday 9 April.

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 5.2% increase. 

State Pensions are not paid by NILGOSC. They are paid by the Social Security Agency who can be contacted at 0845 601 8821 if you have any queries.

What is a Guaranteed Minimum Pension (GMP)?

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 1988 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.

Has the calculation of Pensions Increase changed?

Before April 2011, Pensions Increase was based on the increase in the Retail Prices Index (RPI) during the twelve months to the September of the previous year.  However the budget statement of 22 June 2010 announced that from April 2011, the Consumer Price Index (CPI) replaced RPI as the measure of inflation used to apply cost of living increases. The CPI is being used from April 2011.

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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.

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