Tuesday 28 August 2012

WORKPLACE PENSION

The Government is trying to force us to make more pension savings. Starting in 2012 and coming in over the next several years is the Workplace Pension. With few exceptions everyone who is employed on PAYE will be automatically enrolled into a pension scheme his employer must provide. The employee and employer will be required to both make payments into a pension for the employee. It will phase in over several years starting with both employee and employer contributing 1% of their pay and building up until finally from October 2017 the employer must contribute 3% while the employee must put in 5% of his pay. Where an employer already has a pension scheme in place that provides benefits at least as good as the Workplace Pension, no changes will be required. The employee does have the right to Opt Out of the pension arrangements simply by notifying his employer. While we understand the Government’s wish to try to help people increase their savings for retirement, we do not believe that an effort to force people into saving will succeed in the long term. But we would encourage anyone who is not yet contributing into a pension to take advantage of any employee contributions on offer!

Friday 17 August 2012

LOST TRACK OF A COMPANY PENSION?

If you think you built up some pension benefit in a previous employment but have lost track of it, help may be available. The Pension Tracing Service, provided by the Government at no charge, may be able to help put you in contact with the scheme so you establish any entitlement you have. The Pension Tracing Service is part of The Pension Service. They will try and help you trace a pension even if you are not sure of the contact details. They have access to information on over 200,000 pension schemes and they will use this database, free of charge, to search for your pension. They may be able to provide you with current contact details for a pension scheme. They will need as much information as possible including your National Insurance Number, the name of the employer and when you worked there. You can complete an online pension tracing form or you can telephone the Pension Tracing Service on 0845 6002537 (8:00 am to 6:00 pm). You can also write to them at Pension Tracing Service, Tyneview Park, Whitley Road, Newcastle Upon Tyne NE98 1BA.

Monday 13 August 2012

WHAT HAPPENS TO THE STATE PENSION WHEN I DIE?

If you are single, the income stops on your death. However, if you are married or in a Civil Partnership, your surviving partner may be able to benefit. For example, if a spouse is only entitled to a lower State Pension because they did not have enough qualifying years, they may be able to have their pension increased up to the maximum State Pension. They may also be able to claim Bereavement Benefits including a one-off payment and an allowance for one year. And if your State Pension includes some State Second Pension, some of it may be able to be inherited by your spouse/partner. For information or advice on this, or other pension matters, contact The Pension Service – telephone 0800 7317898 or 08456 060265 Monday to Friday 8 am to 8 pm.

Monday 6 August 2012

STATE PENSION – I DON’T NEED IT YET

You can choose not to take your State Pension when you arrive at your State Pension Age. You may not need it as you are continuing to work or for other reasons. You can put off taking it. This is called State Pension Deferral. You will benefit by putting it off. If you put off claiming your State Pension for at least 5 weeks, you can earn an increase to your State Pension (a one- percent increase for every five weeks you put off claiming). You can also choose to take a lump sum instead. If you delay claiming your State Pension for at least 12 consecutive months, you can choose to receive a one-off lump sum payment instead of an increase in your pension.