|
Guaranteed Minimum Pension (GMP)
This is the maximum yearly amount of pension savings that you can build up in a tax efficient way. This is £50,000 for the 2011/12 tax year and will be fixed at this level until at least 2015/16. To work out the value of your benefits against the ‘'Annual Allowance' you take the increase in your final salary pension entitlement for the applicable annual period and multiply it by 16. You also need to include the value of any AVCs you pay and any other Money Purchase contributions paid on your behalf by the employer. If the overall total is greater than the ‘'Annual Allowance' there will be tax consequences for you. This is the term used for any contributions you choose to pay. Normally a fixed sum paid monthly. Under current legislation, your AVCs are usually tax-free, as they are deducted from your salary before tax is calculated. So, if you pay tax at 20%, a contribution of £10 will only cost you £8.00. The payroll system automatically provides this tax relief. The Basic State Pension (BSP) is a taxable weekly benefit for people who have reached State Pension Age, and the amount you receive depends on how many years of full National Insurance contributions you have. This is the person you are in a registered civil partnership with. The Prudential Assurance Company Limited. The official index used by the Government as its measure of inflation, replacing the Retail Prices Index (RPI). Your dependant generally means:
This is the Defined Benefit Section of The Prudential Staff Pension Scheme. If you joined the Scheme after 31 May 1989, there is currently a cap on the maximum amount of earnings which can count for pension purposes (For the 2011/12 tax year the cap is £129,600). In most cases, this means your own or adopted child under age 18 or later if still in full-time education at the Trustee's discretion (though not normally beyond age 23). In general, this means the permanent service you complete with the Company. The level of salary used will be highest of:
The earliest tax year which will count in points 2 and 3 above is that commencing 6 April 2000.
You no longer need to stop working for the Company before taking your pension benefits. So, subject to certain conditions, you can choose to take your DB Section pension AND continue working. Guaranteed Minimum Pension (GMP) The minimum pension which must be provided if you were contracted out of SERPS before 6 April 1997. It is roughly equal to the SERPS pension you would have received if you had stayed in SERPS. This is the limit on the overall pension savings that you build up in a tax efficient way. It applies to all of the pension benefits you build up over your entire working life, no just those in The Prudential Staff Pension Scheme. The allowance has been set at £1.8m worth of benefits for the 2011/12 tax year and it is due to reduce to £1.5m from April 2012. Your 60th birthday (unless you have been informed of a different date). In general, this means the permanent service (in years and complete months) you complete with the Company (as a member of the Scheme) between the ages of 22 and 62. Benefits retained within the Scheme if an employee leaves before Normal Pensionable Date. The preserved pension will normally become payable from age 60, unless the member retires early or transfers the preserved pension to an alternative arrangement. This is the person to whom you are legally married. This second level of State pension provision is based partly on your earnings, although the Government plans to change this to a flat-rate top-up pension by 2030. You may be entitled to a pension from the S2P as well as a basic state pension. State pensions are payable from State Pension Age, which is currently 65 for men and between 60 and 65 for women depending on their date of birth. The increase to women's State Pension Age began on 6 April 2010. There are Government plans to increase State Pension Age to age 68, to be phased in by 2046, with the first increase to age 66 taking effect by 2020. This means the Trustee appointed to PSPS. Like most occupational pension schemes in the UK, PSPS is established under a trust. Amongst other things, this means that the assets of PSPS are legally separate from those of the Company and that it is run by a Trustee which is responsible for ensuring that members’ interests are protected. A Trustee Company, Prudential Staff Pensions Limited, currently acts as sole Trustee of the Scheme. Some of the Directors of the Trustee Company are elected from the membership of the Scheme.
|
