Information for Pensioners


Payment of Pensions

We run four pensioner payrolls for Methodist Ministers' Pensions Scheme (MMPS), as follows:

MONTHLY

Pensions are paid monthly in advance on the first of the month unless this falls on a weekend or Bank Holiday, in which case your pension will be paid on the last working day of the previous month.  We will send you an initial pension advice slip with the first payment.  Subsequently, we will only send you a pension advice slip when your pension payment changes by more than £1 per month.

Notifications of any change to your home address and/or bank account

So that we can ensure that your instructions are applied in time for the next pension payment date, it is paramount that you inform the Pensions Office of any change to your home address and/or bank account in writing  before the 21st of the previous month. 

QUARTERLY

Pensions are paid quarterly in advance on the first of September, December, March and June unless this falls on a weekend or Bank Holiday, in which case your pension will be paid on the last working day of the previous month.  We will send you an initial pension advice slip with the first payment.  Subsequently, we will only send you a pension advice slip when your pension payment changes by more than £1 per month.

QUARTERLY INTERNATIONAL

Pensions are paid quarterly in advance on the first of September, December, March and June unless this falls on a weekend or Bank Holiday, in which case your pension will be paid on the last working day of the previous month.  We will send you an initial pension advice slip with the first payment.  Subsequently, we will only send you a pension advice slip when your pension payment changes by more than £1 per month.

QUARTERLY ISLE OF MAN

Pensions are paid quarterly in advance on the first of September, December, March and June unless this falls on a weekend or Bank Holiday, in which case your pension will be paid on the last working day of the previous month.  We will send you an initial pension advice slip with the first payment.  Subsequently, we will only send you a pension advice slip when your pension payment changes by more than £1 per month. 

Notifications of any change to your home address and/or bank account

So that we can ensure that your instructions are applied in time for the next pension payment date, it is paramount that you inform the Pensions Office of any change to your home address and/or bank account in writing  before the 21st of the month before the pay date, e.g., August, November, February and May.  

PENSION INCREASES

Your Main Scheme pension is subject to annual cost-of-living increases.  The cost of living is currently measured by the annual increase (if any) in the Retail Prices Index (RPI) in January and the resulting pension increases payable are effective from the following 1 September.

Pension accrued for service before 1 September 2006 is subject to an increase which is currently equal to the lower of 5% per annum and the increase in the RPI.  Pension accrued for service from 1 September 2006 is subject to an increase which is currently equal to the lower of 2.5% per annum and the increase in the RPI. 

The 2016 Conference adopted the proposal to base pension increases on the annual increase in the Consumer Price Index (CPI) rather than the Retail Prices Index from 1 September 2018.  Therefore your main scheme pension which you accrued up to 1 September 2006 will increase annually in payment by the lesser of 5% per annum, or the increase in the CPI.  Your main scheme pension which accrued from 1 September 2006 will increase annually in payment by the lesser of 2.5% per annum or the increase in the CPI. 

Your pension will first qualify for a cost of living increase on 1 September following its commencement.  However, in the case of an ill-health pension which commenced part way through a Connexional year, the first increase will be on 1 September after the pension has been in payment for at least 12 months. 

Please note that if you elected at retirement for your Long Service or AVC Fund to increase at a different level, these increases will be applied accordingly.

INCOME TAX 

Your MMPS pension, other pension arrangements (if any) and your State pension are subject to income tax.  Your allowances against tax may cover your State pension, which means it will be paid without any tax deduction.  If your pension from us, plus your State pension, plus income from other sources exceeds your allowances, you will be liable to tax on the pension you receive from us.  This means that when your State pension increases, your tax code will change and, possibly, you will pay more tax on the MMPS pension. 

It is important that you review your tax code which is being applied to MMPS. You should contact the appropriate tax office to inform them of your various sources of income. 

If you have any queries about tax deducted from your pension you should in the first instance, contact the tax office whose address is given below. 

H M Revenue & Customs
Pay As You Earn
PO Box 1000
Newcastle Upon Tyne
NE98 1WY
Tel No: 0300 200 3300

 

When you write or telephone the tax office you should quote your national insurance number and our employer reference no 120/M31273. 

Fund for the Support of Presbyters & Deacons (formerly the Auxiliary Fund). 

It may be that from time to time, you will be in special need of financial help.  The Fund for the Support of Presbyters & Deacons exists to assist in such situations, including assistance for widows and widowers.  If you should ever need help do not hesitate to write to Finance Manager (Payments), Finance Department, Methodist Church House (MCH). 

Medical Benevolent Fund (formerly the Invalid Ministers' Rest Fund) 

As during your active ministry, this Fund exists to help you in the case of illness.  Application forms for assistance from the Fund can be obtained from Finance Manager (Payments), Finance Department, Methodist Church House (MCH). 

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