pensions
grapevine
All your payslip
questions answered
Special reader discounts
Where’s Arthur?
APRIL 2009, issue 14
Hello and welcome...
to this latest edition of Grapevine, your magazine from the GMPF. I’d like
to start this edition by telling you about this year’s pensions increase you can find out more about this inside.
As well as the usual pensions news, such as tax updates and the like, we
also have a great story from two of our intrepid Grapevine readers. This
year we feature retired members Arthur Cross and Bob Philipps, who took
on the ultimate challenge of climbing mount Kilimanjaro! So remember, do keep those reader stories coming in - even if you’ve got your
feet planted firmly on the ground, we want to know what
you’ve been up to. And remember, we offer £10 in M&S
vouchers for every story we use, so get your thinking
caps on! Who knows, next year, you could be gracing
our front cover.
As usual, there’s quite a lot to take in, so you are very
welcome to ring our Pensions Payroll team if you
need to know more – you’ll find all our details on
the back page.
I hope you enjoy this issue,
All the best,
Understanding your
P60 & payslip
PLEA
SE
K
PAYS EEP
LIP &
P
IN A
60
PLA SAFE
CE.
Packaged with this Grapevine is a very important document your P60 and payslip. The top half of the document is your payslip for April,
and shows details of your pension from us before deductions, and the
amount of tax we have taken.
The bottom half of the document is your P60 - your summary of tax and
pension for the year up to 5 April 2009. You may need to present this, for
example if you make a claim for Tax Credits, so please keep it in a safe place.
TIP
If someone asks for your P60, you can tear it off, keeping the payslip
part for yourself.
HMRC decides your
tax code - it tells
us how much tax
to take. BUT... your
NEW tax code
doesn’t apply till
NEXT month.
In other words your
pension this month
before we take anything
off for tax. See page 4
for more about tax in
general.
Head of Pensions Administration
Greater Manchester Pension Fund,
Concord Suite, Manchester Road, Droylsden, M43 6SF
0161 301 7100
[email protected]
www.gmpf.org.uk
Greater Manchester Pension Fund is administered
by Tameside MBC and is part of the Local
Government Pension Scheme
See page 6 for separate
article about Lifetime
Allowance information.
If you have to fill in a tax
return, these are the figures
you will need.
Pensions Grapevine 2009
3
Down to
brass tacks
certain benefits, income from tax exempt accounts, and premium bond
wins. These income sources are ignored altogether when working out how
much Income Tax you may need to pay.
Tax-free allowances
Your tax update for 2009/10
Last week we were running a pre-retirement seminar, for a gang of people
on the brink of joining you happy band of pensioners. It was all going
suspiciously well until we got to the bit about tax. “And of course just because
you stop work doesn’t mean you stop paying tax” said the presenter, to which
there was a gasp from the audience, and general mumblings of disbelief.
So even though as a Grapeviner reader, you presumably know about this
already (from bitter experience!) we thought it would be worth repeating
one or two facts from the HMRC’s website, together with the latest tax
allowances.
From the horse’s mouth...
Income Tax is a tax on income. Not all income is taxable and you’re only
taxed on ‘taxable income’ above a certain level. Even then, there are other
reliefs and allowances that can reduce the tax you pay – or even mean you
paying no tax at all.
MAY
Another fact you may not realise is that if you have to pay tax
on your State pension, they don’t take tax from that at source.
Instead they ask us to take that tax as well!
Frequently asked questions
Q I have received a form P2 Notice of coding what should I do?
HMRC (Her Majesty’s Revenue and Customs) will inform us
A Nothing!
directly of your new code.
What counts as taxable income?
Taxable income includes:
l Earnings from employment
l Earnings from self-employment
l Most pensions income (State,
company and personal pensions)
l Interest on most savings
l Income from shares (dividends)
l Rental income
l Income paid to you from a trust
Non-taxable income
There are certain sorts of income that
you never pay tax on. These include
4
Pensions Grapevine 2009
Personal Allowances 2009/10
Most UK residents are given a Personal
Personal allowance
£6,475
Allowance - an amount of taxable
£9,490
income you’re allowed to bring in each Age allowance, 65-74*
year tax-free. This coming tax year the
Age allowance 65 plus*
£9,640
basic Personal Allowance - or tax-free
*Allowance reduced if income over £22,900
amount - is £6,475 (and sometimes
even more if you’re 65 or over, as shown here).
REMEM
NEW TA BER
How we take your tax
XC
APPLY ODES
We only know how much tax to take by applying the tax code
FROM
that the HMRC give you. Please note that new tax codes only
apply from 6 April, so don’t take effect until your May payment!
Q I think I’m paying too much tax, who should I contact?
You will need your National Insurance number and PAYE
AHMRC,
reference for the fund. (You can find both on your P60 & Payslip.)
To find out more about
any aspect of your tax,
please contact HMRC:
Q I’m a pensioner, should I be paying tax?
your income is more than your personal allowance then you
AIfhave
to pay tax. The amount of tax you pay is calculated on all your
0845 302 1463
Open 8am - 8pm, every day
www.hmrc.gov.uk
income, including your pension(s) See above for details of this year’s
personal allowances).
Q How is my tax code calculated?
P2 Notice of coding shows how your code is calculated, you
AYour
should check this carefully and contact HMRC if you think it is wrong.
Please quote your National
Insurance number and reference
582 M5010
Pensions Grapevine 2009
5
Lifetime allowance 2009
If you look on your payslip, you’ll see
the following section:
The standard lifetime allowance is a little like a ‘speed limit’ set by the HMRC.
The total value of your pension benefits are measured against this limit each
year, and if you’ve ‘broken the speed limit’ you have to pay an extra kind of
tax called a lifetime allowance charge.
But don’t worry, as the lifetime
allowance for 2009/10 is £1.75
million, most of us will never
come anywhere near.
Lifetime allowance 2009/10
£1.75 million
Even so, in all cases we show what percentage of this ‘limit’ your pension
from us has used up - and if you have other pensions from us or other funds,
remember to add the percentages together to get the total picture.
Specia
discou l
If you look at the article beginning on page 12, you’ll see various for Grap nt
ev
types of investments - everything from stocks & shares in larger
reader ine
s
companies, to investments in so called venture capital.
Bloomin’ marvellous
10%
An example of venture capital is Flowers Direct,
the online florists. And now as a special
offer to Grapevine readers, Flowers Direct is
offering a special 10% discount off all their
beautiful bouquets and arrangements.
To claim your discount when ordering online,
simply enter GMPTEN in the voucher code
box and click validate, or call 0845 075 0631
and quote GMPTEN for this great offer.
Get your GMPF
payslip online
Check your GMPF pension online, by
signing up for our free gmpf online
service. This allows you to view recent
payslips, and the details we hold about
you. This is really handy if you are asked
for information by the ‘taxman’ or the
Department for Work and Pensions
(DWP), as everything you need is
instantly available.
You can also use gmpf online to inform
us about a change of address, without
spending time on the telephone which is especially handy if you’ve
retired overseas.
All you need to get started is a special
PIN number, which you can get by
writing to us or emailing us, explaining
that you want to sign up for gmpf
online.
Please remember to include your name
and National Insurance or pension
number.
[email protected]
www.gmpf.org.uk
www.flowersdirect.co.uk
6
Pensions Grapevine 2009
ayroll section,
P
Greater Manchester Pension Fund,
Concord Suite, Manchester Rd,
Droylsden, M43 6SF.
Pensions Grapevine 2009
7
Pensions on the up
Your pension from us is increased in line with the
official rate of inflation - the RPI. This is measured
from September to September, and we’re pleased
to report that the rate for the year ending last
September was 5% - so that’s the increase this
year. But please note there are three reasons
why you won’t get the full 5% this month...
Under investigation
Did you know we pay pensions
to over 78,000 folks like you every
month? So it’s no surprise that every
now and again someone forgets
to keep us up to date, and a wrong
payment is made.
The main example of this is where
one of our members dies, and we
simply don’t find out in time to stop
their pension. And of course, it isn’t
just about stopping pensions... when
a member dies leaving dependants,
we need to start paying a pension to
those dependants in their own right.
So the message is, whoever is
looking after your affairs when you
die needs to let us know as soon as
possible.
Fraudulent activity
Taking this a stage further, we also
occasionally come across deliberate
cases of fraud, where a relative finds
You won’t get all the increase you’re due

until next month. That’s because your
pension doesn’t actually go up until
several days into April - this year on
the 6th.
a way of carrying on claiming a
member’s pension after they’ve died.
This is a form of theft, and is taken
very seriously.
if you paid into the Fund before

To help detect this type of fraud,
we take part in something called
the National Fraud Initiative, which
cross checks the records from
pension schemes like ours with the
Department for Work & Pensions’
database. This picks up cases where
people are fraudulently claiming
pensions which aren’t theirs, and
cases are then investigated further,
sometimes in conjunction with the
Police.
Date pension began
7 April ‘08 - 21 April ‘078
22 April ‘08 - 21 May ‘08
22 May ‘08 - 21 June ‘08
22 June ‘08 - 21 July ‘08
22 July ‘08 - 21 August ‘08
22 Aug ‘08 - 21 Sept ‘08
22 Sept ‘08 - 21 Oct ‘08
22 Oct ‘08 - 21 Nov ‘08
22 Nov ‘08 - 21 Dec ‘08
22 Dec ‘08 - 21 Jan ‘09
22 Jan ‘09 - 21 Feb ‘09
22 Feb ‘09 - 21 March ‘09
If you claim other benefits
Also, please remember you need to
declare your pension from us if you
claim other benefits, such as housing
benefit, as they may have to take its
value into account.
To find out more
For more information about the National Fruad Initiative, and how
Tameside takes part in it, please see: www.tameside.gov.uk/fraud
8
Pensions Grapevine 2009
Increase
5.00%
4.58%
4.17%
3.75%
3.33%
2.92%
2.50%
2.08%
1.67%
1.25%
0.83%
0.42%
6 April 1997 and have now
reached State pension age you
probably have what’s called a GMP
- a guaranteed minimum pension.
This isn’t a separate pension but
rather a minimum amount your
Fund pension has to at least
equal. GMPs also attract pensions
increase but this pensions increase
is paid along with your State
pension.
If you retired part way through the

year, you won’t be entitled to the
full year’s increase - see the chart
on the left.
So don’t worry if you don’t get the full 5%
this month - this is quite right.
Looking ahead
And you might be wondering what
will happen going forward if inflation
falls to below zero? If this happens,
then we expect your pension to stay
the same rather than it going down.
Pensions Grapevine 2009
9
Changing your bank?
If your bank details change, your bank or building society won’t
tell us, so please make sure you do! Please note we cannot take
bank changes over the phone, so you will need to drop us a
line or call in at our offices. Let us know in good time or it might
delay your payment.
New job?
Please remember, you must tell us if
you get another job with any employer
who offers membership of the LGPS whether or not you join the Scheme.
In some cases, working for this
type of employer will affect some
people’s pensions.
Diary dates
Here’s a recipe we’ve tried out in the Grapevine office – it’s
cheap, tasty, and got a big thumbs up... why not give it a try!
Tasty Sausage Casserole
Ingredients
8 low-fat sausages
1 yellow pepper ,
deseeded and chopped
4 red onions , cut into wedges
400g can chopped tomatoes
250ml vegetable stock
Pinch of sugar
Pinch of basil
Serves 4
Method
Heat oven to 220C/fan 200C/gas 7. Put the sausages,
pepper and onion into a roasting tin, then roast for 20 mins.
Lower oven to 200C/fan 180C/gas 6, then tip tomatoes and
stock over the sausages. Add sugar and basil, season, then
stir well. Roast for another 20 mins. Delicious served with
creamy mash.
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...
August 2009:
paid Monday 3rd
10 Pensions Grapevine 2009
November 2009:
paid Monday 2nd
January 2010:
paid Monday 4th
Pensions Grapevine 2009 11
Summary annual report
Top 20 equity holdings as at 31 March 2008
2007/8
To
get the
Although it’s a little while since we published our full Annual
version full
,
Report, we thought you might appreciate the chance to
down you can
read selected highlights, or know where to get hold of the from load a PDF
our w
full copy if you need one...
get a pr ebsite, or
in
from ou ted copy
r helplin
esee bac
k page
£253m
£213m
£174m
£141m
£124m
£104m
£101m
£88m
£86m
£77m
£67m
£67m
£63m
£51m
£45m
£40m
£33m
£30m
£29m
£27m
Fund value nearly
3
awards
£9.3
billion
1 for member
communications and
2 for staff training
Maintained
employer rates
amongst
lowest
in the
country
20
new
employers
Low
yearly costs
of pension
administration
at just over
join the
Scheme
member
12 Pensions Grapevine 2009
£14 per
As you will see on the left, the Fund value was close to
£9.3 billion at the end of the financial year. This
£9.3 billion comprises two elements; a Main Fund of
£8.9 billion and a small number of designated funds
totalling £400 million.
This summary report is based on information taken from our full annual report
& accounts, dated 31 March 2008, which has been audited as part of
Tameside MBC’s annual accounts.
Did
you k
now..
.
We ha
v
e
a
lmost
78,00
0
like y pensione
ou
rs
- that in the Fun
’s 22%
d
m
than
10 ye ore
a
ago. rs
Pensions Grapevine 2009 13
Management arrangements
Total Main Fund
£8,890 million
Externally
managed
£7,380 million
Internally
managed
£1,510 million
Property
£744 million
Cash &
Venture Capital
£766 million
Securities Portfolio
UBS
£4,193 million
Securities Portfolio
Capital
£1,320 million
Property
Venture Fund
GVA Grimley
£24 million
Securities Portfolio
Legal & General
£1,843 million
Benchmark asset allocation
Non equity split
Equity/non equity split
PROPERTY
28.6%
EQUITIES
65%
UK/overseas equity split
UK INDEX LINKED
8.3%
OVERSEAS INDEX
LINKED 4.0%
Overseas equity split
NORTH AMERICA
27.6%
UK EQUITIES
55%
EMERGING
7.6%
PACIFIC
17.6%
UK GOV’T
BONDS 13.1%
NON EQUITIES
35%
CASH
17.7%
OVERSEAS
GOV’T BONDS
8.3%
OVERSEAS
EQUITIES
45%
UK CORPORATE
BONDS 17.7%
JAPAN
17.6%
EUROPE
29.6%
OVERSEAS CORPORATE
BONDS 2.3%
Jargon buster...
Compared with the previous financial year...
Benchmark asset allocation: The guidelines for where we invest
Equities: Shares in companies
Non equities: Other types of investment like property
14 Pensions Grapevine 2009
Less invested in
Government bonds
& UK equities
More invested in
Overseas equities
Pensions Grapevine 2009 15
How we
performed
Year ended 31 March 2008
And here’s the result
of the various types
20
of investments
- our returns. The
15
top graph shows our
returns from each 10
type of investment, 5
compared with the
0
‘market’ (in other
words investment -5
returns in general).
-10
And the bottom graph
compares our returns
-15
with other local
authority pension
funds like us.
%
GMPF
15
10
12
9
9
-5
6
6
3
3
0
0
-3
-3
8.9
Transfers in (Individual)
22
Income from investments
290
Total Income
654
354
Investment & administration costs
12
Transfers out
25
-15
Money available for investment
263
ER
ED
ED ERTY
DS NDS
IES ITIES REST
EST
TH
O
ON
E
ER
INK
INK
U
UIT
P
EQ S EQ D INT D INT ATE B ATE B
H/O
XL
X L PRO
S
E
E
K
D
D
U
R
R
CA
IXE
IXE
SEA
PO RPO UK IN AS IN
ER V’ T F
’T F
E
O
OR
OV
RS
O
OV UK C AS C
E
G
G
S
OV
SE
UK
ER
SEA
ER
OV
OV
8.2
5.1
10
5
Duration (years)
Net assets statement as at 31 March
How the
figures add
up...
Local Authority Average
15
236
391
-3.0 -2.8
20
Employers contributions
Total expenditure
6.2
106
-10
12.6 12.4
10.3 9.4
Employees contributions
Benefits paid out
0
GMPF
12
(£ millions)
Expenditure
5
WM Local Authority Survey Financial years to 31 March 2008
15
Market
20
PENSION FUND RETURNS
%
15
Income
INVESTMENT RETURNS
At the top of the
facing page you
will see how much
members paid in,
compared with how
much employers
paid in. After other
payments in and out,
the amount available
for investing was
£263 million.
2008 (£’000)
2007 (£’000)
UK equities
3,104,976
3,526,022
Overseas equities
2,474,314
2,330,415
UK fixed interest corporate bonds
351,227
322,267
Overseas fixed interest corporate bonds
136,600
63,600
UK fixed interest government bonds
284,541
385,368
Overseas fixed interest government bonds
407,564
483,736
UK index linked
517,592
463,825
Overseas index linked
138,111
129,339
Property
743,996
862,444
27,038
43,105
Indirect private equity
203,122
157,116
Cash instruments
120,736
119,644
Cash and deposits
718,682
621,617
Other investments
44,315
51,727
9,272,814
9,560,225
13,852
3,220
9,286,666
9,563,445
Local investments
Investments at market value
1
Net current assets and liabilities
Net assets of Fund
16 Pensions Grapevine 2009
Pensions Grapevine 2009 17
Grapevine readers
scale new heights
If you saw any of the recent celebrity Kilimanjaro climb for Comic Relief, you’ll know
what a gruelling physical and mental challenge this is. When you consider the level
of training, professional support and backing these celebrity climbers have received,
it makes the achievements of two Grapevine readers even more remarkable.
Arthur Cross wrote to tell us how, at the age of 63,
he and his pal Bob Phillips trekked to the top of
Kilimanjaro, at the suggestion of their friend Stuart
Dickinson a retired deputy headteacher. Arthur & Bob
had met whilst working for Stockport council in their
Education Service, with Arthur retiring in 2003 and
Bob retiring 3 years later.
With the help of porters and guides, Bob, Arthur
and friends walked all the way to the top, taking
it ever so slowly over seven days, so as to avoid
altitude sickness. Bob and Arthur shared a two
man tent during this time - and were still friends
at the end of it! They even went on to spend 16 days in a two
man tent in the Himalayas 18 months later.
The group took the somewhat unusual decision to camp overnight in the crater of
Kibo amongst the tower glaciers with their six foot icicles. It was beautiful sunshine
during the day, a bit chilly at night (probably -20 Celsius) and then it unexpectedly
snowed during the night and they had to beat a quick retreat.
Mount Kilimanjaro is the crown of Tanzania and Africa’s highest mountain at 19,345
feet. At this height there is about half the amount of oxygen you get at sea level.
Kilimanjaro is a dormant but not extinct volcano with two peaks of Mawenzi and the
higher Kibo. The trek passes through lush rain forests, heather moorland, arid desert
and finally to the rim of the volcano, past glaciers, to reach Uhuru Peak - the roof of
Africa, as it’s known.
The day after the trek, one of the guides took the party round his village, including a
visit to his former primary school. This made such a big impression on Bob that when
he retired last August he returned and signed up for 15 months to something called
the Village Education Project. He is helping in three local primary schools, teaching
children, developing the teachers’ skills, and even getting the locals interested in
ping pong.
18 Pensions Grapevine 2009
On the roof of Africa, Arthur and Bob,
seen on the left of the picture
Says Bob “It’s great to be back in Tanzania
- I have developed a real affection for the
country, its customs, its way of life and its
climate. The simple way of life and the pace
of life here really suits me. It’s like going
back in time to the 1950s when neighbours
looked after each other, and people
actually talked to each other”.
Arthur has produced a presentation The
Snows of Kilimanjaro, which he shows for
a donation to his favourite charity, the
Charnwood Trust.
Contact 0161 442 9856.
Bob is alive and well at
www.bobintanzania.blogspot.com
Kilimanjaro
facts & figures
Rising 19,345 feet above sea level,
Kilimanjaro is the tallest mountain in
Africa.
Kilimanjaro comprises 3 volcanoes:
Kibo (19,340 feet), Mawenzi (16,896
feet), and Shira (13,000 feet).
Kilimanjaro’s lower slopes are home
to elephants, buffalo, colobus
monkeys, and birds such as sun birds,
buzzards, and mountain hawk eagles.
One popular theory suggests that the
mountain’s name comes from Kilma
Njaro meaning shining mountain in
Swahili.
Pensions Grapevine 2009 19
The Grapevine Quiz
And the winner is...
In case you’re sitting there thinking “I won’t enter that competition,
I never win” here’s a picture of last year’s Grapevine competition
winner, Pauline Holt Brescovic. Pauline set us a bit of a challenge,
as she now lives in the beautiful setting of Dubrovnik in Croatia.
But the Grapevine spies did a bit of
espionage, and discovered
that there are in fact three
M&S branches in Croatia, so
plenty of chances for Pauline
to spend her prize.
Welcome to our prize quiz. We are offering you the chance to win £50 worth
of M&S vouchers. We have pensioners living all over the world, we’ve shown
landmarks from six of the most popular locations below. Simply name each
country and return the coupon to us. The first correct answer out of the hat
wins the prize. Good luck to you all...
1
So whether you live in Dublin
or Dukinfield, Denton or
Dubrovnik, get your thinking
caps on, and have a go at the
competition opposite.
2
3
5
6
4
10% discount reader offer from
DISCOUNT REF GMPF/HM
Another of our investments is Hallmark Hotels,
who have four recently transformed boutique-style
hotels, offering luxury accommodation, tasty food
and great wine to visiting guests. There are Hallmark
Hotels in Bournemouth, Manchester, Derby and
Carlisle, and we have negotiated a special 10%
discount off all accommodation, food & drinks, as
long as you book directly with Hallmark.
"
To get your 10% discount, book online or ring the
number below, and when you pay your bill, simply
present this article.
3
4
5
6
Your Pension Number:
Discount does not apply if booked via 3rd party agent. Discount
cannot be used in conjunction with any other offer. All bookings
are subject to availability. Voucher valid from 1 April 2009 for 12
months.
20 Pensions Grapevine 2009
2
Your full name:
Terms & conditions
0845 4506686
1
See enclosed payslip if you don’t know your pension number
Please place in an envelope and mail to:
Communications Team, Greater Manchester Pension Fund,
Concord Suite, Manchester Road, Droylsden, Tameside, M43 6SF.
www.hallmarkhotels.co.uk
Pensions Grapevine 2009 21
Forum tickets
now available
Why not join us for this year’s
Forum on 9th October...simply fill
in the slip opposite and return it to
us...
When you arrive, you can look forward to a
‘nice cuppa’ while you catch your breath,
and hopefully meet up with some old pals.
It’s also a great time to ‘ask the experts’ standholders from organisations like SAGA,
and crime prevention agencies. In fact one
lucky Grapevine reader’s won a Norwegian
cruise for two on the SAGA stand last year who knows, this year it could be you!
Friday 9th October 2009
New Century House,
Corporation St. Manchester
10:00am to around 3:00pm
We then move to the main conference hall
for presentations by Fund staff, and visiting
speakers.
A light buffet lunch will then be served 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.
Please enter me in the draw for a ticket for the
2009 Pensioners’ Forum
How to apply
Sorry, 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 2009. We
will pick names around August, and send
you a ticket if you’ve been successful.
Your full name:
Your Pension Number:
See enclosed payslip if you don’t know your pension number
This event is completely free of charge, and
always proves very popular. So please only
apply for a ticket if you definitely want to
go!
Signed:
Please place in an envelope and mail to:
Communications Team,
Greater Manchester Pension Fund,
Concord Suite, Manchester Road,
Droylsden, Tameside, M43 6SF.
Retu
to us rn
30 JU
b
NE '0 y
don
9 an
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Pensions Grapevine 2009 23
f
t
o
s
u
J r laughs
Jim and Betty were 85 years old and
had been married for 60 years. They
didn’t have much money, but were
happy and healthy. They put their
good health largely down to what
Betty called “The All Bran Plan”. For
the last 10 years, they had started
the day with a big bowl of All Bran,
then had nothing but healthy low
fat food the rest of the day. And of
course there was no alcohol, except
a small sherry once a week.
Sadly one day, they went out for
a ride in their old Skoda, but the
brakes failed, sending them sailing
off the edge of a cliff.
St Peter welcomed Jim & Betty at
the pearly gates, then showed them
into a beautiful house, lavishly
decorated, and with all mod cons,
including a 50” flat screen TV, a
designer kitchen, and a huge
bathroom decorated in marble and
gold.
“Welcome to Heaven - this will be
your home now” said St Peter. “It’s
incredible” said Jim “but we can’t
afford this!” to which St Peter
replied “It won’t cost you a
penny - this is your reward
in Heaven”. Jim gazed
out of the window at the
championship golf course
right on his doorstep,
and even before he
could comment, St Peter
24 Pensions Grapevine 2008
added “Yours to enjoy as often as you
like - it’s all free”.
The next day, St Peter hosted a
welcome party for all the new
arrivals, with the most lavish buffet
they had ever seen. Jim looked
nervously at Betty... “This doesn’t
quite fit in with your All Bran Plan”
he said. “Don’t worry” said St Peter
overhearing him... “In heaven you
can eat and drink whatever you like
and you will never get fat or sick”.
Jim couldn’t believe it - no more All
Bran! “That’s right” said St Peter. “Full
English Breakfast every day?” asked
Jim “Every day if you like” replied
St Peter. “Beer on tap?” asked Jim
“All day, every day” came back the
reply... “Remember, this is heaven you’re here to enjoy yourself”.
After a long pause, Jim glared at
Betty and said “You and your b***y
All Bran Plan... We could have been
here ten years ago!”
Why your
pension is safe
These days, it’s hard to turn on the TV, open a newspaper, or browse
the web, without finding endless stories of doom and gloom, the credit
crunch, and crisis in the financial markets. Understandably, many
members are worried that this might affect their LGPS pension, so in this
article we look at why your pension is safe.
You can rest assured, that even in
these troubled times, your LGPS
pension is rock solid - and this
is due to the way in which your
benefits are worked out, as this
article explains.
How benefits are worked out
Pension benefits in the Local
Government Pension Scheme
(LGPS) are based on membership
and final pay.
Because of this, your benefits are
not affected by the value of the
Pension Fund, which goes up and
down as it receives contributions
and pays benefits, and as
investment markets rise and fall.
Three yearly health check
Every three years the Fund has a
‘health check’ - where an outside
specialist examines the value of its
assets (its investments and future
income) and the extent of its
liabilities (what it has to pay out
now and in the future). This then
results in a review of the amount
employers have to pay in.
This process is called a valuation,
and at the last valuation in 2007,
the Fund was 100% funded,
meaning that it had £1 of assets
for every £1 of liabilities. This
made it one of the best funded
local authority pension funds in
the country.
An amazing track record
The Local Government Pension
Scheme was created in 1922 and
over the decades has seen huge
swings in the value of investment
markets, both up and down.
The recent falls do not affect our
ability to pay pensions.
So whether you are paying into
the Scheme through your job,
you have left benefits with us
to draw in future, or you are
already drawing your pension,
you can rest assured that the local
government pension you have
built up is safe.
Pensions Grapevine 2009 25
Do keep in
touch!
Please remember to keep us in the picture if you
move house, or if this newsletter didn’t come to the
right address.
As well as carrier pigeon, we are
happy to hear from you by phone,
by fax, by email, or by post.
You are also very welcome to
call at our Droylsden offices - our
opening hours are shown here.
Ple
note ase
w
be cl e will
Wed osed
ne
8th J sday
uly
Monday to Wednesday: 08:30 - 17:00
Thursday: 08:30 - 16:30
Friday: 08:30 - 16:00
- please see the back cover
for all our contact details.
What have you
been up to?
Remember, Grapevine is YOUR magazine,
and we want to hear from YOU! So if you
have anything at all to tell us about, which
you think other Grapevine readers would
be interested in, then get in touch.
That’s exactly what Arthur Cross did, after
his mammoth Kilimanjaro trek last year,
and now he’s our cover ‘pin up’ and the
proud winner of £10 in M&S vouchers.
Jokes Arthur “They sell thermals in M&S....
might be handy for my next trip!”
Even if your interests don’t involve
scaling such dizzy heights, we want
to hear from you - here are some
suggestions for things you could send
us...
l Recipe ideas
l Gardening tips
l A travelogue about your favourite holiday destination
l A funny story (keep it clean though, adults might be
reading!)
And if we use your material, we’ll send you a
£10 Marks & Spencers Voucher.
Please contact:
Communications Team, Pensions Office, Concord Suite,
Manchester Rd, Droylsden, Tameside, M43 6SF.
Or email: [email protected]
26 Pensions Grapevine 2008
Pensions Grapevine 2009 27
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 7100
[email protected]
www.gmpf.org.uk
Greater Manchester Pension Fund
Concord Suite, Manchester Road
Droylsden, Tameside, M43 6SF