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Change in early retirement age from 6 April 2010
Following a change in legislation, with effect from 6 April 2010, the early retirement minimum age will be raised from 50 to 55.
If you wish to take your benefits before the age of 55, we will require all completed documentation prior to 15 March to ensure benefits are paid before the change. If the documentation is received after this date, we can not guarantee payment will be made, therefore early retirement will not be allowed.
Completed documentation includes birth certificate, discharge forms completed by you and if you are a member of the Money Purchase Scheme, the receiving scheme.
Please note, if benefits are drawn in advance of your Normal Retirement Date, benefits may be lower.
Therefore, if you are under the age of 55, and you wish to take your benefits early, please contact us immediately.
(updated 03 February 2010)
Benefit Statements as at 31 December 2008 have now been issued to members of The Money Purchase Scheme of The Cheviot Trust and active members of the Final Salary Schemes. If you have any queries with
regards to this statement, please complete and return the comments form enclosed in the pack.
(updated 24 August 2009)
Benefit Statements
There has been a delay in the printing of the 2008 Benefit Statements, these will now be issued this month. Apologies for any inconvenience this may cause.
(updated 4 June 2009)
Status of the Money Purchase Scheme
Members will recall that the issue regarding the status of the Money Purchase Scheme is ongoing. The Trustee Board has taken further advice from Counsel in the light of the Bridge case which was reported last year. The case is potentially very helpful in the way in which it is distinguished from the KPMG case. The advice we have received from Counsel is that it would be inappropriate to take any further action until the appeal is heard. In the meantime, the Trustee Board continues to manage the scheme on a money purchase basis and is continuing its efforts to engage with the Department for Work and Pensions.
A resolution of the issues continues to look likely to take some time, particularly as the appeal which was due to be heard in January has been deferred to June 2009. We will continue to keep you informed of any developments.
(updated February 2009)
New Trustee Board members
I am pleased to advise that Neil Braithwaite of Dickinson Dees has joined the Trustee Board as an Employer Nominated Director and that Vineeta Kaura of Thompsons has joined the Board as a Co-opted Director.
(updated February 2009)
Benefit Statements as at 31 December 2008 are due to be issued April 2009.
(updated 23 January 2009)
Pensions tax regime
You may recall we wrote to you along with your 2005 benefit statement informing you of a new tax regime for pensions. This came into force on 6 April 2006 and was widely publicised as A-day.
This is a reminder that if you have substantial retirement benefits you need to register for protection directly with Her Majesty’s Revenue & Customs before 5 April 2009. This is your last opportunity.
We strongly recommend you seek advice from an Independent Financial Adviser if you are unsure of your position.
What are substantial retirement benefits?
The tax changes introduced an overall limit on pension savings which could benefit from tax relief. This is known as the Lifetime Allowance and was initially set at £1.5 million, (which translates to an annual pension of approximately £75,000 in a defined benefit (final salary) scheme), rising to £1.8 million by 2010/11. The rate at which the Lifetime Allowance may be increased by the Government after 5 April 2011 is expected to keep pace with inflation.
Scheme members who already had substantial retirement benefits at A-day are able to take advantage of two forms of protection under the provisions of the Finance Act 2004:
- ENHANCED PROTECTION offers protection for all benefits against the Lifetime Allowance charge. The protection is available to any individual with benefits accrued at A-day and allows the value of pre A-day benefits to be linked to indexation or movements in future earnings or investment growth, although no further benefits may be accrued under defined benefit (final salary) schemes or further contributions made to defined contribution (money purchase) schemes; and
- PRIMARY PROTECTION allows a member with benefits in excess of £1.5 million at A-day to elect to have a personal Lifetime Allowance which is equal to the deemed value of his benefits at that time. The deemed value then replaces, and grows in line with, the standard Lifetime Allowance.
Members wishing to elect for protection of existing pension benefits have three years from 6 April 2006 in which you need to notify Her Majesty’s Revenue & Customs of your intention to register for protection.
Benefit Statements as at 31 December 2007 have now been issued to members of The Money Purchase Scheme of The Cheviot Trust and active members of the Final Salary Schemes. If you have any queries with regards to this statement, please complete and return the comments form enclosed in the pack.
(updated 6 August 2008)
Benefit Statements as at 31 December 2007 will be issued next week to members of The Money Purchase Scheme of The Cheviot Trust and active members of the Final Salary Schemes.
(updated 29 July 2008) |
