Information for PASLEMC pensioners
Payment of Pensions
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.
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.
Pensions are increased annually on 1 September by the lesser of 5% or the increase in the UK Index of Retail Prices for the previous July, in respect of benefits earned prior to 6 April 2005 and by 2.5% or the annual increase in the Index of Retail Prices if lower, in respect of benefits earned on or after 6 April 2005. For members who joined the Scheme prior to 1 December 1997, the element of their pension in relation to service accrued prior to 1 September 1998 increases at 5% pa. Additional increases may be awarded at the discretion of the Trustee, subject to the agreement of the Methodist Council and there being sufficient funds available.
Your pension will first qualify for a cost of living increase on 1 September following its commencement.
Please note that if you elected at retirement for your AVC Fund to increase at a different level, these increases will be applied accordingly.
Your PASLEMC 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 PASLEMC pension.
It is important that you review your tax code which is being applied to PASLEMC. 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.
HM Revenue & Customs
Pay As You Earn
PO Box 1970
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 951/M5129WW .