Changes Affecting Pensioners From September 2010
Contents
Post Retirement Leavers Discretion To Cease And Recover Benefits Evidence Of Continued EntitlementPost Retirement Leavers With Less Than 1 Year's Qualifying Service
New procedure affecting post-retirement repayments and the introduction of "Short Service annuities"
Unlike the 1997 Regulations, a re-employed member who does not qualify for further benefits because they have been re-employed for less than a year is entitled to a repayment of contributions. However, such repayments are regarded by HMRC as an unauthorised payment and subject to an "unauthorised payment" charge.
From 1 September 2010, to avoid an unauthorised payment, a member will instead be paid a Short Service annuity which will be added to their existing entitlement.
The annuity will be based on factors provided by the Scheme Actuary and does not allow for any lump sum to be paid.
Action for members - If you are re-employed after retirement and you complete less than a year’s pensionable employment, a repayment is no longer payable. You will now receive a short service annuity, which will be added to your existing pension.
Discretion To Cease And Recover Benefits
The 2010 Regulations contain specific powers for the Secretary of State power to cease benefit, withhold payments or recover sums where it is determined that there was or there is no longer an entitlement to the benefits.
Back to the topEvidence Of Continued Entitlement
The 2010 Regulations contain provision to suspend pension if necessary to investigate continued entitlement. If there is undue delay in the person providing the information to confirm entitlement that is not outside the person’s control, then there is power to withhold interest on any backdated pension when the pension is re-instated.
Action for pensioners - If you receive an "Adult life declaration" form, please complete this as soon as possible to avoid any suspension of your pension or minimise the time that your pension is suspended.