Pension Scheme

Your Pension

All Tameside employees (other than Teachers) are encouraged to join the Local Government Pension Scheme, irrespective of the hours they work or their contract. Teachers can join the Teachers Pension Scheme by visiting this website - www.teacherspensions.co.uk

There has been much press coverage recently about many private sector firms that have changed their existing pension schemes, either for new employees or in some cases for existing employees as well.

The Local Government Pension Scheme is a statutory final salary scheme and its benefits are guaranteed by law. Like all good public sector pension schemes it is also contracted-out of the State Second Pension (formerly Serps), as the benefits it offers exceed a minimum requirement laid down by the Department for Work and Pensions.

The Scheme rules are written by the Local Government Pensions Division, which now comes under the Department for Communities and Local Government.

About the Fund

The Greater Manchester Pension Fund (the Fund) is part of the LGPS and was created in 1974 following local government reorganisation. The administering authority at that time was Greater Manchester Council. Following GMC's abolition in 1986 responsibility for the Fund passed to Tameside.

The Fund is the largest local authority pension fund in England and Wales and now exceeds £9billion. As well as employees of the local authorities in Greater Manchester, employees from a wide range of other organisations such as New Charter Housing, Manchester Airport, local colleges and Citizens Advice Bureaux can join the Fund. Including pensioners and deferred members, the Fund now has over 240,000 members.

Who Pays?

Tameside makes a contribution based on a percentage of your pay. This changes from year to year as determined by the Fund's actuary. In 2007/08 the Council is making a contribution of 12.2%. Most employees make a contribution of 6%. You get tax relief on your contributions if you pay tax. In most cases, you will also pay reduced National Insurance contributions.

What are the benefits?

When you retire you get a tax-free lump sum and an annual pension, which will be a portion of final pay. The longer you've been a member, the bigger the portion. Instead of taking the standard benefits package, you may be able to take advantage of the flexible option of a bigger lump sum by giving up some your pension.

In cases of ill health retirement, which have to be certified by an independent Occupational Health specialist, once someone has three months pensionable service a pension is payable for life. A member retiring on ill-health grounds after five years pensionable service will usually receive enhanced benefits.

If you are unfortunate enough to die whilst you are a contributor, the Fund will pay out a lump sum death grant equal to two years' final pay, and you have this cover from the moment you join. If you are married, have a civil partner or have eligible children, family pensions will be paid too.

If you leave your employer and become a deferred member, your deferred benefits will be increased each year in line with inflation.

If you want to provide your family with more protection and secure yourself a more comfortable retirement, you can pay extra to top up your benefits. You can also transfer the worth of membership from other public sector pension schemes.

When can I retire?

You can retire any time from the age of 60, and even before then if your employer agrees. But in some cases your benefits will be reduced if you draw them before age 65.

How do I get more information on the Pension Scheme?

The Fund has a comprehensive web site at www.gmpf.org.uk This includes an up to date version of the Employee guide to the scheme and an on-line calculator to see what pension and lump sum you may have. You can also ring the Fund's Helpline on 0161 301 7000.