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- The latest issues: 327
PENSION NEWS 10/03
PNPF AND THE SECRETARIAT
The changes continue, the Secretariat has moved. I have to confess that it was with mixed emotions that I left
AVC SCHEME
The Additional Voluntary Contributions Scheme renewal went smoothly this year with only one or two late submissions. As I write this article Richard is in the process of compiling the paperwork for onward submission to the appropriate providers. 1st October was the start of the new Additional Voluntary Contributions Scheme year and once the employed members’ September contributions are sent Equitable Life and Norwich Union should commence preparing the annual benefit statements for all members.
We hope to be in a position to send out the AVC benefit statements by the end of November, but this will depend on when they are received (there was a problem with Norwich Union last year) and the accuracy of the information.
STATUTORY MONEY PURCHASE ILLUSTRATION
There may be an additional hold up in that as from 6 April 2003 new regulations require pension schemes with a money purchase element, i.e. the Additional Voluntary Contributions Scheme, to produce illustrations of the pensions their members are likely to get. The Government’s reasoning behind this is to encourage people to save more, in reality it may have the opposite affect.
This is known as a Statutory Money Purchase Illustration (SMPI) and will be produced by the Additional Voluntary Contributions Scheme provider. As it is yet another piece of paper they are required to produce it may result in delays. (I am beginning to sound like Connex Southeast!)
INLAND REVENUE – PENSIONS
SHORTFALL
It appears that the Inland Revenue has failed to warn millions of workers that they have not paid enough National Insurance Contributions (NICs) to receive a full state pension. The Inland Revenue has blamed staff shortages for this failure and over the coming year they will be writing to many of those affected. Many of those affected will need to pay a top-up contribution of £1600 to avoid a shortfall in their state pension.
Many of those who have not paid sufficient NI Contributions are thought to be on low incomes and they will need to consider whether it is worth paying expensive additional NICs, when the government has introduced the minimum income guarantee (MIG), which is replaced in October by the pensioner credit.
Women are not required to pay NI contributions after the age of 60, but the threshold is 65 for men. Men who retire between the ages of 60-65 can get so-called ‘autocredits’ to boost their contribution record, but if they return to work they will have to pay NI contribution as usual. If you think your NI contribution record may be incomplete, you may request a pension forecast by filling in form BR19, which is available from the Benefits Agency.
Pension Watchdog
The Occupational Pension Regulatory Authority (OPRA) has confirmed that there will be a more powerful pensions watchdog as suggested in last year’s Green Paper. The bad news is it will not happen for another two years
Expat Pensioner loses Case
The British pensioner living in
The Court of Appeal upheld the
British Government’s right to deny pensioners living in certain countries the right to increases on their state pension even though they have a full National Insurance Contributions record.
Well wasn’t it a glorious summer and most weekends would find me in the garden reading a book. It proved a little too hot for Bumbles, though, and even though I could coax her out for a few minutes she soon retreated to the cool of the dining room. Still by the time you read this it will soon be Christmas and Bumbles will have to relearn the route around the Christmas tree, if she is anything she is adaptable!
Debbie Marten
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