At Ease Spring 2015 For Web.indd

Spring 2015
Teesside Pension Fund — keeping people in touch
From The Chair
Welcome to the spring
edition of Atease, the
twice-yearly newsletter
for pensioners of the
Teesside Pension Fund.
We have reverted to
our usual spring slot now that the newlook Local Government Pension Scheme
has bedded in since its launch in April
last year.
In this edition, we inform you of the
requirement to create a local pension
board for our Fund, and to invite
applications from our retired members
who may be interested in representing
scheme pensioners on the board.
Further details can be found in the article
opposite.
You will also find a round-up of nonpension articles, as well as our regular
Legal Ease feature; hopefully you will
agree that Atease continues to be
informative and relevant, but if there are
any topics you would like to see featured
in future editions, or any comments you
would like to make about this or previous
editions, please let the Pensions Unit
know.
Unfortunately, there’s no space left this
time for puzzle corner but I’m sure this
will be back in future editions!
I hope you have a very pleasant summer
and I look forward to writing again later
in the year.
Kind regards,
Steve Bloundele
Pension Boards – How You Can Help to Ensure the Effective
Running of the Teesside Pension Fund
Do you feel that you have the knowledge, and the time, to assist in ensuring that
the Teesside Pension Fund is well run and complies with legislation?
Would you like to represent pensioner members as part of a new Pension Board,
which will advise the Administering Authority?
If you have answered yes to both of the above questions then there is an exciting
new opportunity that you can apply for!
Background
In 2011 the Independent Public Service Pensions Commission undertook a
review of all public service pension schemes. Subsequently, the commission
made a set of recommendations aimed at ensuring public service pensions would
be sustainable and affordable in the future while providing an adequate level of
retirement income for members. The government then laid out a set of principles
for their ongoing administration. These were introduced in the Public Service
Pensions Act 2013 (‘the 2013 Act’) and introduced national advisory boards and
local pension boards for all public service pension schemes, including local
government. For the first time they also gave the Pensions Regulator (tPR) a role in
ensuring good governance of public service pensions.
This led to the Local Government Pension Scheme (Amendment) (Governance)
Regulations 2015 which allows for the LGPS to comply with the 2013 Act.
These two pieces of legislation, which come into force on 1st April 2015, require
each Administering Authority to create a Local Pension Board in order to assist it
in its role as Scheme Manager.
The Teesside Local Pension Board
The Teesside Board will have six members, representing equally both employers
and members. In order to ensure that Teesside pensioners have an adequate voice
on the Board, one of the member representatives will come directly from our
pensioners. There is a requirement that the membership of the Board have “the
capacity to represent the employers or the members”. This places a requirement
that, even though training will be provided, you have a working knowledge of
LGPS rules to assist the Board in being able to undertake its statutory remit (i.e.
assist the Scheme Manager and ensure that any decisions comply with legislation).
The Board will be responsible for:
1. assisting the Scheme Manager (the Administering Authority) in ensuring
they comply with:
a. the Scheme regulations
b. other legislation relating to the governance of the LGPS
c. any requirements imposed by the Pensions Regulator.
2. to ensure the efficient and effective governance and administration of the
LGPS
Middlesbrough Borough Council, as the Administering Authority for the Teesside
Pension Fund, currently delegates its functions to the Pensions and Investment
Committee. The Local Pension Board will not replace the Pensions Committee.
Pension Boards – How You Can Help to Ensure the Effective Running of the Teesside Pension Fund
The Role
The role is an integral part of the governance of the Teesside
Pension Fund. Therefore it is expected that to be a member
of the Pension Board you will require a working knowledge
of the LGPS rules and any documentation recording policy
relating to the administration of the scheme. You will also be
required to have knowledge and understanding of the law
relating to pensions and any other matter which is prescribed
in regulations.
your underlying knowledge. The site also gives an idea of the
areas you will cover if successful in becoming a member of
the Teesside Pension Fund’s Pension Board.
If you would like further understanding of what this role will
involve please feel free to visit the Pension Regulator’s website
(http://www.thepensionsregulator.gov.uk/public-serviceschemes.aspx) which provides information on what is
expected of you and also an interactive toolkit that will test
Graeme Hall
Mouchel Pensions Unit
PO Box 485
Middlesbrough
TS1 9EE
Next Steps
If you wish to be considered for the available member role in
the Teesside Pension Fund’s Pension Board please send your
CV, along with a cover note on why you think you are an ideal
candidate, to the following address:
The diagram below shows the interaction between the various bodies involved in the administration of the Teesside Pension Fund:
The other bodies in this diagram are:
Responsible Authority – this is the Secretary of State and is responsible for amending the LGPS Regulations.
National Scheme Advisory Board – has responsibility for providing advice on the desirability of changes to the scheme, when
requested to do so by the responsible authority. May also provide advice (on request or otherwise) to the Scheme Manager or
the scheme’s pension board on the effective and efficient administration and management of the scheme or any pension fund
of the scheme.
The Pensions Regulator – has been responsible in ensuring that private pension schemes are governed effectively. The 2013 Act
has extended this remit to include Public Sector Pension Schemes.
Pension Pay Dates
Thursday 30th April 2015
Monday 30th November 2015
Friday 29th May 2015
Wednesday 23rd December 2015
Tuesday 30th June 2015
Friday 29th January 2016
Friday 31st July 2015
Monday 29th February 2016
Friday 28th August 2015
Thursday 31st March 2016
Wednesday 30th September 2015
Friday 29th April 2016
Friday 30th October 2015
It is important that you let the Pensions Unit know if you change your address or bank details as it is the policy of the
Pensions Unit to suspend pensions if either a payslip is returned or a bank is unable to credit a pension payment into an
account. This will lead to a delay in you receiving your pension until we can confirm that the details we hold are correct.
If you have an overseas bank account payments may take slightly longer to reach your account than the dates above.
HEALTH
Building exercise into your routine
There’s no time like the present to begin
Go on a walk to break
up your day.
Sitting down for several
hours at a time is not
good for your health,
posture or stress level.
Getting up every few
hours to take a short
stroll outside will get
you burning some
calories and will keep
you calmer. Take a
10 or 20 minute brisk
walk after lunch; this
is a great way just to
get moving. Perhaps
meet a friend to discuss
issues and catch up.
It’s not always easy to incorporate
exercise into your daily routine. You
vow that you will work out in the
morning, or after work (if you still
work) and then end up catching up on
TV dramas or sitting down for a long
dinner. But as the summer approaches
it’s important now more than ever to
make exercising a priority.
Speaking of friends,
get a ‘gym buddy’.
Make a goal with a
friend to work out
together because that
way when you try to talk yourself
out of exercising, you won’t only be
letting yourself down but also your
friend. Other people can be a great
motivation to hold you to your plan
and prevent you from steering off
course. You can also set rewards for
reaching certain goals together, such
as a healthy lunch date or a cinema
visit.
Here are six easy exercise tips:
If you have the opportunity, take the
stairs.
If there are 10 floors in a hotel or a
building, then walking up those 10
flights of stairs is a great way to get
your heart rate up. You might want to
create your own ‘Stairmaster’ and run
or walk up and down the stairs at home
once or twice a week. When you have
the option, take the stairs. Just think
of those extra calories you’re burning
and how you are keeping your heart
healthy.
Find a fun alternative to working out
on the treadmill.
Exercise doesn’t have to mean
running on a treadmill for 30 minutes
a day gazing at a wall. Spice up your
routine with aqua aerobics, yoga,
a bike ride or walk in the park, or
perhaps try Zumba Gold, which is
specifically designed as a low impact
exercise and is perfect for older adults
who wish to be active. Taking exercise
classes is a great way to do cardio for
a full hour and stay motivated. These
types of classes usually have a weekly
schedule, so you can book them in
your calendar.
Make your hobby your exercise.
Did you know that golfers can walk
between 3 and 6 miles in one day?
And think of all those squats people
who tend to garden do! Those who
like to go to museums can take a
stroll of up to two miles during one
visit. Hobbies such as woodworking
and fishing require arm strength and
endurance. Even a small amount
of exercise can help your heart and
lungs to stay in shape. Making these
kinds of hobbies part of your exercise
routine guarantees that you will be
getting regular physical activity, plus
you’ll be doing something you really
enjoy – which releases endorphins
which ultimately make you feel good!
It’s a win/win situation.
Set realistic goals.
One of the many downfalls of
incorporating exercise into your daily
routine is binge exercising. You go
weeks without working out and to
make up for it try and go to the gym
every day. You might see results
quickly, but this isn’t sustainable. The
only way to create an exercise routine
that will really stick is to set realistic
goals such as going to the gym no more
than three times a week - and perhaps
doing sit ups on alternate mornings.
Taking small steps with realistic goals
is the best way to see lasting results.
Of course it’s easy to say what needs
to be done but the hard part is to
actually do it – and yes you can!
FINANCE
Summer on a budget
Plan the summer holiday that works for you
As summer approaches there are
always mounting pressures for days
out, holidays and visits. With this in
mind, here are some top tips for saving
on travel and outings throughout the
summer.
Be realistic about what you can
afford.
We all want an amazing, no-holdsbarred holiday, but choosing a trip
you can’t afford will likely add more
stress to your life. After all, what’s the
point of taking time to relax if you’ll
be stressed about paying for it for
several months to come? Maybe it’s
time to take that walk, discover your
local area and meet up with friends,
instead of going away.
Create a trip budget.
Travel calculators are available on the
web, such as independenttraveler.
com, which can help you calculate the
cost of petrol, lodging, food and more.
By using this you can really plan to a
budget.
Shop around.
There are a plethora of sites (such as
skyscanner.net or expedia.co.uk) that
make it easy to compare fares from a
variety of airlines, hotels and car hire
companies. It’s a savvy traveller’s
world out there that you can really
take advantage of. Days out in the
park or the great outdoors can work
too – sometimes for no cost at all!
Protect yourself.
When ordering tickets, make sure
the sites you are using are legitimate
(check for the wording ‘ATOL
protected’). Once on your trip,
safeguard your identity by keeping
your passport, driving license and
credit cards in a safe and always away
from view. And in case of the worst,
make sure to make photocopies of key
documents.
Expect the unexpected.
Credit cards get lost. Flights get
delayed. Storms arrive unexpectedly.
Keep unknowns in mind when
planning your trip, and set aside an
extra 10 to 15% of your travel budget
for emergencies or surprises.
Take advantage of technology.
These days, few travellers leave home
without their smartphones and iPads.
Try using Apps, like worldmate.com
that not only compare prices but allow
you to book hotels online, check in for
flights and organise itineraries.
Days out vs weeks away.
What might seem like a good idea
at the time, individual days out, can
often cost more, especially for large
families. Think about consolidating
your days out into a week of meeting
friends or staying with relatives.
The Staycation.
No doubt, you’re familiar with the
staycation phenomenon. This is the
budget-savvy, stay-local version of
the old-fashioned holiday. Many
travellers are embracing the idea of
saving on accommodation and airfare
by spending time off near home
and enjoying inexpensive activities
in their area. The idea is that you
discover your local area and become
a tourist in your home town – and
who knows, you might just come
across new and exciting things. Invite
the grandchildren over and get them
involved for additional fun!
Here are a few ways to get the most
out of your staycation.
• Create a staycation plan so you don’t
get stuck doing all the household
jobs and running errands.
• Turn off your mobile and close that
laptop. Limiting your time with
technology means you can have a
real holiday where you relax and
recuperate!
• Pick low-cost activities over
high-cost ones; remember, more
expensive doesn’t always mean
more fun.
• Research all of the nearby spots
you’ve always wanted to visit, and
consider day trips. They’ll allow
you to see the sights and enjoy a
change of scenery without having
to pay for an overnight stay.
LIFESTYLE
Volunteering
How you can gain from being involved
With busy lives, it can be hard to
find time to volunteer. However,
the benefits of volunteering can be
enormous to you, your family, and
your community. The right volunteer
match can help you find friends, be
part of the community, learn new
skills, and even advance your career.
Volunteering can also help protect
your mental and physical health.
worthwhile benefits.
Children
and
grandchildren watch
everything you do and
by giving your time to
the community you
show them first-hand
how
volunteering
makes a difference and
how good it feels to
help other people.
Benefits of volunteering
One of the better-known benefits
of volunteering is the impact
on the community with unpaid
volunteers being the glue that holds
a community together. As a volunteer
you will enable a real connection
with your community and help make
it a better place. Even helping out
with the smallest tasks can make a
real difference to the lives of people,
animals, and organisations in need.
Make new friends and contacts.
One of the best ways to make new
friends or strengthen existing
relationships is to commit to a shared
activity together. Volunteering is a fun
and fulfilling way to meet new people,
especially if you are new to an area.
Improve your social skills.
For naturally outgoing people
volunteering will be an easy route
to take; for others it will be a more
difficult task. One of the benefits is
that it can give you the opportunity
to practice and develop your social
skills. Once you have momentum in
the volunteering world, it’s easier to
branch out and make more friends
and contacts.
Volunteering as a family.
While it might be a challenge to
coordinate everyone’s schedules,
volunteering as a family has many
Helps your feeling of
well-being.
Reducing the risk of
depression caused by
social isolation is an
important benefit of volunteering.
Being in regular contact with others,
can help develop a solid support
network, which in turn helps combat
stress and depression.
Helps you stay physically healthy.
Volunteering is good for your health at
any age, but it’s especially beneficial
in older adults. Studies have found
that those who volunteer have a lower
mortality rate than those who do not,
even when considering factors like
the health of the participants. It has
also been shown to lessen symptoms
of chronic pain or heart disease.
Only requires enthusiasm
Many volunteering opportunities
do not need previous experience
and will provide extensive training.
For example, you could become an
experienced crisis counsellor while
volunteering at a women’s shelter or
a knowledgeable art historian while
donating your time at a museum.
Consider
interests
your
goals
you first take some time to identify your
goals and interests. Start by thinking
about why you want to volunteer. Also
think about what you would enjoy doing
– volunteer opportunities that match
both your goals and your interests
are most likely to be fun and fulfilling
for you.
Tips for Getting Started
Once you have thought about your
reasons for wanting to volunteer you
could try contacting your nearest:
• Community theatres, museums,
and monuments.
• Libraries or senior centres.
• Service organisations such as Lions
Clubs or Rotary Clubs.
• Local animal shelters, rescue
organisations, or wildlife centres.
• Youth organisations, sports teams,
and after-school clubs.
• Historical restorations, national
parks,
and
conservation
organisations.
• Places of worship.
and
You will have a richer and more
enjoyable volunteering experience if
When you are confident what
volunteering you want to undertake,
that’s when you’re ready to volunteer.
Happy volunteering!
LEGAL
ease
Retirement
Pension
Tina Gilchrist, State Benefits and Retirement Consultant,
gives us an update on benefits.
State Benefits
State Pension Increases
The Chancellor confirmed that under the ‘triple
lock’ promise to increase the state pension
by earnings, prices or 2.5% whichever is the
highest, that the Basic State Pension increased
by 2.5% in April 2015 from £113.10 to
£115.95 per week, and from £67.80 to £69.50
for a spouse or civil partner. Additional Pension
(SERPS/S2P) contracted out deduction from
1988-1997 increased by 1.2%; there will be
no increase on the pre 1988 contracted out
deduction. Graduated pension will also be
increased by 1.2%.
ISA Allowance – Change to Inheritance Rules
Further details have been announced on the
change of rules governing the inheritance of
ISA’s on death.
Since 3 December 2014, if an ISA holder dies,
they will be able to pass on the value of their
ISA benefits to their spouse or civil partner
via an additional ISA allowance which they
will be able to use from 6 April 2015. The
surviving spouse or civil partner will be given
an additional, one-off ISA Allowance, equal in
value to the deceased’s ISA holdings. This will
enable them to re-invest assets which were
in their spouse’s ISA, into an ISA in their own
name.
However, the ISA tax wrapper is lost from the
date of death until the distribution of the estate
following probate. Once probate has been
granted, the value of the ISA passes to the
surviving spouse. This value can then be used
at the start of the new tax year, in addition
to their own ISA Allowance (£15,240 from 6
April 2015).
Extension of Fixed Rate Bonds
(Pensioner Bonds)
The Chancellor has announced that the
government have extended the availability of
its 65 plus pensioner bonds to 15 May 2015,
to ensure that all pensioners aged 65 and over
who want to benefit from the bonds will have
time to do so.
This does not affect those savers who have
already taken the opportunity to invest in the
bonds, if they have already invested up to the
available limit of £10,000 per bond per person.
The bonds are available directly from National
Savings & Investments, either by post at
National Savings and Investments, Glasgow
G58 1SB, or phone: 0500 500 000 or if you
live abroad: +44 1253 832007 or online at:
www.nsandi.com
Budget Report April 2015
• New rules were introduced from April 2015
in line with the new pension freedoms for
individuals taking a drawdown pension.
Where individuals die under the age of 75
while receiving a joint life or guaranteed
term annuity, their beneficiaries will be
able to receive future payments from the
annuity tax free. This will apply in all cases
where the beneficiary starts to receive the
payments after 6 April 2015. The new rules
will also allow joint life annuities to be paid
to any beneficiary.
For annuities inherited from an individual
who dies aged over 75, the tax rules will
also mirror the rules for drawdown pensions
with the beneficiary paying income tax at
his or her marginal rate for the tax year in
which it is received.
Making
Contact
For general enquiries
telephone: 01642 727030
e-mail us at –
pensionsunit@mouchel.com
Web:
www.teespen.org.uk
Write to:
Mike Hopwood
Head of Pensions
Mouchel Pensions Unit
PO Box 340
Middlesbrough
TS1 2XP
Alternatively you could visit us at:
Mouchel Pensions Unit
Middlesbrough House
50 Corporation Road
Middlesbrough
TS1 2YQ
PLEASE DO NOT SEND
CORRESPONDENCE TO
THIS ADDRESS
The Teesside Pension Fund is
administered on behalf of
Middlesbrough Council by Mouchel.
• The transferable tax allowance for married
couples and civil partners who were born
after 5 April 1938, will be 10% of the
personal allowance, so will be increased to
£1,100 by the tax year 2017/18.
• A personal savings allowance will be
introduced with effect from 6 April 2016.
Basic rate taxpayers will not have to pay any
tax on the first £1,000 of interest on savings
income, and higher rate taxpayers will not
have to pay any tax on the first £500 of
interest on savings income. The allowance
will not be available for additional rate
taxpayers.
From April 2016 banks and building
societies will stop automatically taking 20%
in income tax from the interest earned on
your non-ISA savings.
atease is published for Teesside Pension
Fund
by
Evolve.
The
Lifestyle,
and are copyright of Evolve. Neither the
publishers nor the Teesside Pension Fund
can accept responsibility for the views of
this newsletter’s contributions and, although
every effort is made to ensure the accuracy
• Beer duty is to be cut by 1p a pint and cider
by 2p. There will also be a 2% cut in excise
duty on scotch whisky and other spirits and
the duty on wine will be frozen. This change
took effect on 23 March 2015
of the contents, readers are advised to take
appropriate professional advice before acting
on the information or advice in these pages.
Evolve
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Health
and Money articles inside are written by
email: richard.g@evolve-print.com
website: www.evolve-print.com