1

The newsbulletin for Pensioners of Merseyside Pension Fund

Echoes of 1974

Page 6

Paying yourPensions whileliving abroadPage 5

The 2011Census

Page 3

RetiringAbroad

Page 4

Your Tax Codeand Pension

Page 2

Issue 6 / Autumn 2010

Published by: Merseyside Pension Fund, 7th Floor, Castle Chambers 43 Castle Street, Liverpool L69 2NW T: 0151 242 1390Editor: Paul BrooksWebsite: mpfmembers.org.uk

This issue’sCompetition

Page 8

Centenarians

Page 7

In his Budget in June, the Chancellor of the Exchequer announced a change to howpublic sector pensions will be increased in line with inflation from April 2011.

CPI (%) RPI (%)

2000 1.0 3.3

2001 1.3 1.7

2002 1.0 1.7

2003 1.4 2.8

2004 1.1 3.1

2005 2.5 2.7

2006 2.4 3.6

2007 1.8 3.9

2008 5.2 5.0

2009 1.1

Change to your PensionIncrease from April 2011This change will mean that your local governmentpension will be linked to the Consumer Price Index(CPI) instead of the Retail Prices Index (RPI). The maindifference being that the RPI rate of inflation includeshousing costs such as mortgage interest and council tax.

Previously, local government pensions have beenincreased in line with the RPI in the 12 months endingwith the previous September. The table below comparesthe September rates of CPI and RPI since 2000:

The Public Service Pensions CommissionIn June, the Chancellor also announced the creation of an independentPublic Service Pensions Commission chaired by Lord John Hutton.

While the Commission will make recommendations on how public servicepensions can be made sustainable and affordable in the future, the CoalitionGovernment confirmed that existing accrued pension rights will be protected.

This ensures that your local government pension will be unaffected by theCommission’s findings.-1.4

2

Your Tax Code and PensionUnder statute law, the Fund has to account for the tax deductable fromrelevant pension records. It achieves this by the application of tax codesissued by HM Revenue & Customs (HMRC). HMRC recently introduced anew National Insurance and PAYE system to issue notices of tax coding forthe first time.

Unfortunately, in the spring, HMRC reported that they experienced technicalproblems which led to some duplicate tax code notifications being issued totax payers, some of whom will be members of the Fund.

While the majority of notices issued were correct, anyone who is concernedthat their code may be wrong, should contact HMRC rather than MerseysidePension Fund. You can contact HMRC on 0845 300 0627, quoting yourNational Insurance number and PAYE tax reference number: 428/M1.

Further information can also be obtained from the HMRC website at:tinyurl.com/32qfdja

The Fund would like to hear from you to help us improve the range ofservices that we provide. We would be very grateful if you could sparea moment to access our website at: tinyurl.com/2u5blad andcomplete our online Survey.

This survey invites you to tell us how well we perform a range of tasks insupporting Fund members, as well as asking you to suggest specificimprovements. To navigate through the survey, please click 'Next' whereprompted. It should take you less than ten minutes to complete.

If you are a member of Merseyside Pension Fund, complete allquestions and submit your response before Monday 1 November 2010,you will be entered into a draw to win £25 of high street gift vouchers.Employees of Merseyside Pension Fund and their relatives will not beentered into the prize draw.

If you have any questions about this survey, please contact Paul Brooks atthe Fund on 0151 242 1360 or by e-mail at: paulbrooks@wirral.gov.uk

Complete our Survey andwin £25 worth of vouchers

Civil PartnerSurvivor’sPensionImprovements

Recent amendments to the LocalGovernment Pension Scheme (LGPS)Regulations may have improved theSurvivor’s Pension which becomes payable to your surviving Registered CivilPartner in the event of your death.

These improvements affect pensioners in a registered civil partnership, who were stillin pensionable employment on or after 1 April 2008. Where previously, survivorbenefits were restricted to the deceased’smembership from 6 April 1988 onward,they will now be based on all of theirScheme membership.

Understanding the size and makeup of the national and local population, enablescentral government to more accuratelyallocate funding to important publicservices. It is then vital that the Censusreaches as many people as possible.

Local councils have been busy working with partner agencies to ensure that allcommunities are engaged in the process assoon as possible. Census information eventswill begin shortly. These will be followed byhelp with census form filling and translation.

For the first time, forms will be posted outinstead of being hand delivered and therewill also be the opportunity to completeyour census form online. Completing yourcensus form helps to ensure that your localcouncil and its partners will receive thefunding they need to maintain publicservices in your community.

More Information

If you have any questions about the 2011Census for England and Wales, you cancall Census Customer Services on 01329 444 972 (Mon-Fri 9am-5pm) or go online at www.comms.census.gov.uk.

Furthermore, if you are interested infinding out more about the short-termemployment opportunities being createdfor local people to help run and managethe 2011 Census in your area, you can callon 01256 383847 or go online atwww.censusjobs.co.uk.

On 27 March 2011, the Office ofNational Statistics (ONS) willundertake the Census for Englandand Wales. Run every ten yearssince 1801, it will provide a one daysnapshot into the population ofevery town, village and street.

The 2011 Census 3

Upcoming Pension PayDates 2010/2011

Protecting your Pension

You must tell us about any change to your bank or address details atleast 10 days prior to the pay date.

If you need to sort out problems with your pension, please call thePensions Helpline on 0151 242 1391.

Friday 8 October 2010Wednesday 10 November 2010Friday 10 December 2010Monday 10 January 2011Thursday 10 February 2011Thursday 10 March 2011

Merseyside Pension Fund takes every step to ensure that theinformation we have concerning our pensioners is dealt with in thestrictest confidence and not revealed to anyone else who does not havea legal right to see it.

We must protect the public funds that we handle, regarding yourpension. To do this, we may use information that you have provided toboth detect and prevent fraud. Statutory obligations may also requirethat this information be shared, for the same purposes, with otherorganisations that handle public funds.

Top 10 things to consider:

As a resident of the UK, you have numerous choices as to where to move when youretire. If you wish to remain fairly close to family and friends in the UK, there’s theobvious choice of remaining within the EEA (European Economic Area). Thesecountries include favourites such as France, Germany, Netherlands, Greece, Italy,Spain and Portugal, amongst others.

If you have longed to travel further, you may want to consider retiring tosomewhere like Australia, New Zealand, Canada or the USA. For these countriesthere are increased difficulties with obtaining permanent residency, but it can bedone. Often you are required to prove that you have enough income to sustain yournew life without a need to claim benefits. Also, you may need to make a substantialfinancial investment as a guarantee that you can afford to retire abroad. If you areconsidering this move, it is best to obtain independent legal advice from a goodmigration agent or solicitor.

Money, Money, Money…Money is the number one reason why people fail when they move overseas, resulting inthem falling on hard times and/or having to return home. Moving abroad is an expensiveundertaking. For the majority of people, it involves a house sale in the UK and a house purchase abroad - or at least a re-mortgage and finding tenants for the UK house and then buying or renting overseas. Then there are the additional hidden and unknown expenses - some things you can budget for and others you just can't.

When you have a shortlist of countries that sound favourable to you, you have to begin digging beneath the surface to see howmuch it will cost to live there, based upon the following criteria:

4

Retiring Abroad?According to figures collated in a survey conducted by the Institute for Public Policy Research, in 1981 therewere 250,000 British retirees living abroad, in 2005 there were 1 million living abroad and it is estimated by2050 there will be a staggering 3 million British retirees enjoying their retirement overseas.

1 HealthcareAs we age, so our need for access to medical facilitiesgenerally increases. What’s more, inflation in thehealthcare industry runs far higher than in the ‘realworld.’ This means that in a nation where you have tohave insurance or pay as you go, a lot of your monthlyincome could be eaten up in medical costs. Factor thispotential cost in as a high priority – you do not want tobe left high and dry when you really need healthcare.

2 HousingOne of the reasons why so many of us can considerretiring abroad is because we have accrued impressiveamounts of equity in our principal residence that willallow us to sell up and buy a property in a cheaperlocation. However, if you’re renting instead, then aproportion of your monthly income will be taken inrent payments. If you do buy, you will also still need acertain amount to pay for the maintenance of yourhome each month.

3 FoodWhat is the day-to-day cost of food like in your chosencountry? Can you live and shop like the locals inmarkets and from local suppliers to keep your costsdown?

4 Utilities Everything from fuel for your car to fuel to heat and lightyour home has to be factored in. What does electricitycost, what will your water rates be, is there a council taxequivalent?

5 TaxationTalking of council tax, what about income tax on yourpension if you remit it to the nation you live in? Whatabout inheritance tax and the laws of succession too?Think about all of these realities when you look at eachcountry in turn.

6 LeisureThe whole point of retirement is having the time onyour hands to do all the things you have always wantedto do during your working life. So make sure you haveenough cash in the bank to do the garden how you wantit, to join the golf club, to have satellite TV or to be ableto travel and explore your new country.

While the lure of sea, sand and sangria is a powerful one, what happens toyour State Pension? If you retire abroad, you will still be able to receive yourState Pension. You may be entitled to the annual increase to your StatePension rates if you live in an EEA country*, Switzerland, or a country thathas a reciprocal social security agreement with the UK**. If you live abroadin any other country you will not receive an annual increase.

*The EEA countries are Austria, Belgium, Bulgaria, Czech Republic, Cyprus,Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Iceland,Ireland, Italy, Latvia, Liechtenstein, Lithuania, Luxembourg, Malta,Netherlands, Norway, Poland, Portugal, Romania, Slovakia, Slovenia, Spainand Sweden. The UK is also part of the EEA. UK means England, Scotland,Wales and Northern Ireland. Gibraltar is treated as another EEA country bythe UK. Other EEA countries treat Gibraltar as part of the UK.

**The UK has reciprocal social security agreements with other countriesthat may help you to be paid benefits abroad. Non-EEA countries coveredby reciprocal agreements are Australia, Barbados, Bermuda, Canada, Isle ofMan, Israel, Jamaica, Jersey & Guernsey, Malta, Mauritius, New Zealand,Philippines, Switzerland, Turkey, USA and the former republics ofYugoslavia. However, this does not apply to index-linking: in Australia,Canada, New Zealand and South Africa, your pension will continue to bepaid at the level it was at the time of retirement.

On the other hand, if you live in: Barbados, Bermuda, Bosnia-Herzegovina,Croatia, Guernsey, Israel, Jamaica, Jersey, Macedonia, Malta, Mauritius, thePhilippines, Sark, Switzerland, Turkey, other former republics of Yugoslaviaand USA, index-linking will apply.

Your State Pension can be paid directly into a bank or building societyaccount. You can use a bank or building society in the UK, or a bank in thecountry in which you live. In most countries, the money will beautomatically converted into the local currency. Where the country doesnot have the facilities for direct banking, you can receive your State Pensionin the form of a cheque in UK currency.

If you decide to retire abroad, you should let the Pension Service know yournew address as soon as possible. The International Pension Centre dealswith all enquiries regarding the payment of State Pension for those livingabroad. Their contact details are:

Telephone: +44 191 218 7777

Text phone: +44 191 218 7280

5

Your State Pension

Merseyside Pension Fund currently paysbenefits to over 400 pensioners who liveabroad.

If you move abroad, payment of yourlocal government pension will beprocessed in the normal way and beconverted into the local currency, thusavoiding foreign exchange costs. Anyaccount at a bank or financial institutionthat accepts direct deposit payments canreceive pension payments.

The account must be in the name of thebeneficiary or in the joint names of thebeneficiary and his or her spouse. There isa charge for using this system, currently£2.74p per payment made.

If you live abroad and are still paid bycheque, you may wish to consider using thedirect deposit system instead. If so, pleasecontact the Fund on 0151 242 1394 and wewill send further details to you.

Your localgovernmentpension

7 TravelWill you be able to afford to have and run a car? Andwhat about a flight ‘back home’ every so often to seethe grandchildren? Factor these likely costs in fromany country you consider.

8 Insurance You may need health insurance depending on whereyou want to live, you will also perhaps need buildingand contents insurance, earthquake insurance,indemnity insurance and maybe even life insurance ifyou have an outstanding mortgage.

9 EventsNo matter how well and how carefully you plan,something will inevitably come along and knock you off course. You need to factor in that unforeseen bills will arise – and you’ll need to save towards such events.

10 VisasWill you have to pay a yearly or regular fee to maintaina visa to live in the country you have chosen? This is areality in Northern Cyprus for example, and somethingoften overlooked by us Britons who are sometimesunder the misapprehension we can live anywhere for free.

If you discover a country where you can afford to live on the pension income you have determined you will have to work with each month – you will have found your ideal retirement destination abroad.

In other words, you will have found the cheapest country to retire in for you personally.

That was the year that was

Britain...Then and Now

"Am I mad, in a coma, or back in time?"DCI Sam Tyler - Life on Mars (BBC)

1974 saw the wholesale re-organisation of local government in the UK. Merseyside was created on 1 April 1974 from areas previously parts of the administrative counties of Lancashire and Cheshire, along with the county boroughs of Birkenhead, Wallasey, Liverpool, Bootle and St Helens.

Merseyside Pension Fund itself was created as a result of these changes, centralising the pensions administration and investments functions of the existing county boroughs and urban district councils. The Local Government Superannuation Regulations 1974 made the pension scheme broadly compulsory for all full-time and optional for part-time local government employees who worked more than 15, but less than 30, hours a week.

Voluntary retirement after 25 years became available after the age of 60 and averaging was reduced to one year, i.e. thefinal year of service determined pension paid. The widow’s pension provision was increased to one half of the pensionpayable and children’s pensions were introduced. Most importantly, employer’s contribution rates became variable andbenefits were allowed to be deferred.

Over the next couple of pages, we indulge in a little nostalgia. This may jog some memories and even motivate you torescue those kipper ties from the back of the wardrobe or blow the six inches of dust off your Osmonds LPs in the loft.

There have been times this year, when many of usmight have thought something similar. Some of theevents of 2010 have had uncanny similarities withthose of another Chinese Year of the Tiger, namely1974. It was another year in which Britain voted for a hung parliament during gloomy economic times,while looking on as Holland’s footballers lost theWorld Cup Final.

1974 2010A gallon of petrol 42p £5.31A pint of milk 5p 59pAverage House Price £10,900 £234,837The colour TV licence £12 £145.50

6

CentenariansSince our last issue, an unprecedented eight of our pensioner members have reached their one hundredthbirthday. The Fund expressed its warm congratulations to all of them on their special day.

7

That was 1974...

MABEL O’CONNORReached 100 in March

GRACE KENRICK Reached 100 in April

MAY EVANS Reached 100 in May

DOROTHY BRIANT Reached 100 in June

BETTY MURRAYReached 100 in July

JOHN MacDONALD Reached 100 in August

NORA COTTER Reached 100 in August

BEN PAYNE Reached 100 in August

OctoberThe second Genera

l Election of the

year results in a narrow victory for

Labour, with Liverpool Huyton MP

Harold Wilson re-elected as Prime

Minister with a majority of 3.

AugustThe Three Degre

es’

third single "When

Will I See You Again"

topped the UK

Charts, reaching

Number 2 in the US

and selling over two

million copies.

JulyBill Shankly stunned the football world byannouncing his

retirement after 15 yearsas Liverpool manager. Itcame just 2 months afterguiding the Reds to a 3-0FA Cup Final win overNewcastle United at

Wembley. OctoberToxteth’s own John Conteh won the WBC LightHeavyweight Boxing title by out-pointing

Argentinian Jorge Ahumada. He would hold thetitle until 1978.

8

Competition – Autumn Word Search

Would you like this, or future newsletters, in large type, Braille or on audio CD?Write to: Margaret Inman, Merseyside Pension Fund, 7th Floor, Castle Chambers, 43 Castle Street, Liverpool L69 2NW Telephone: 0151 242 1362 Email: mpfadmin@wirral.gov.uk

Q I I B W O R B Q L E A S D FA A H N D L A I O L O F A L LW J U M R P W

WY P K T F G G H

S I N T F Z S P L E R F O OE H I Q U X A H P H E C A L DD A K S Y M E A C O R N E D PR L M C H C N N W G W L S E ZF L O O U V R U N F A S R N AT O L N J B F O N D E P D Y XG W P K I N S J B V Q T T H FY E Z E K A V M A S P K F U RH E X R E M T E V M I S T J UU N C S O Q L I C A O E T I IJ O V E L A G K X P F R O S TI H A R V E S T Z I K O G K S

Last issue’s competitionWe received a large number of correct entries for last issue’s competition, who found the 18 host cities of the Winter Olympic Games. The first winning entry drawn was sent by Mrs Joan Nurse of Liverpool,shown right, who won £25 of high street vouchers. Many Congratulations!

NAME

ADDRESS

POST CODE

PENSION NO. DAYTIME TEL NO.

As the leaves turn golden, why not enter our autumn competition. To be entered into the draw to win £25 of high streetvouchers, simply identify from the list above, 14 words associated with the autumnal season. Please send your completedpuzzle entry by Tuesday 30 November 2010 to:

Merseyside Pension Fund, The Honeypot Competition 6, P.O. Box 120, Liverpool, L69 2NW.

The first correct entry drawn on Wednesday 1 December 2010 will win. Please note entries are restricted to pensioners ofthe Scheme. Employees of Merseyside Pension Fund and their relatives may not enter. Good Luck!

ACORNGOLDENAPPLE HARVESTAUTUMNHALLOWEENCONKERSLEAVESFALLMISTFROST RIPEFRUIT SEASON