South Herts Gas Retired Employees Association
National Grid UK Pension Scheme
Your pension Increases and payment dates
The payroll team looks after your benefit payments and issues P60s.
Pensions payable from the Scheme are reviewed in April each year and increased in line with the percentage increase in the Retail Prices Index (RPI) for the 12 months up to the previous September.
This year the main annual pensions increase will be 3.3%, this will be applied with effect from Monday 8 April 2019. This is in line with the increase in the RPI for the 12 months up to September 2018.
If you built up pension in the Scheme between 6 April 1978 and 5 April 1997, you may have a Guaranteed Minimum Pension (GMP) element to your pension, which is increased at a different rate.
You're paid on the 15th of the month. If your payment date lands on a weekend or a bank holiday, you'll be paid on the previous working day.
It's important you keep your bank account details up-to-date. Payslips and P60s We only provide a payslip if your monthly payment changes by more than £1.01 or if your tax code changes.
We send you a copy of your P60 in April each year. It details your total pension payments and tax for the previous tax year.
You can also view your personal tax account by registering on the HMRC website. Guaranteed Minimum Pension (GMP) Up to 5 April 2016, the Scheme was what's known as ‘contracted out’ of the State Second Pension (S2P).
The S2P provided an extra earnings-related element of the State Pension in return for extra National Insurance (NI) contributions.
The Government offered an incentive to encourage employers to contract their scheme out of the arrangement. Employers and their employees paid less NI, but there were terms however, and the employers pension scheme had to guarantee that the pension they provided would be at least equal to the pension given up if they were paying into the Scheme between 6 April 1978 and 5 April 1997. This means many members built up a GMP. These members will receive different increases applied to that element of their pension in payment after GMP age (60 for women, 65 for men).
If you reached State Pension Age (SPA) before 6 April 2016 Your pension will be increased each April as follows:
• Pre 1988 GMP: The increase on this element of your pension is paid by the Government as part of your State Pension. • Post 1988 GMP: The increase on this element of your pension is paid by the Scheme by the lower of 3% or the increase in the Consumer Price Index (CPI). If that years CPI (for the 12 months to September) is higher than 3%, the Government pays the surplus as part of your State Pension. • Non-GMP pension: This is the remaining part of your Scheme pension and receives the annual increase as outlined at the top of this page.
If you reached SPA on or after 6 April 2016 Your pension will be increased every year in the following way:
• Pre 1988 GMP: This element doesn't receive an increase. • Post 1988 GMP: The increase on this element of your pension is increased by the lower of 3% and the increase in the CPI. • Non-GMP pension: This is the remaining part of your Scheme pension and receives the annual increase as outlined at the top of this page. However, if you haven't yet reached your GMP age and are already receiving your Scheme pension, the whole of your pension will receive an annual increase in line with the rise in the RPI. When you reach your GMP age, your GMP will come into payment and the increases above will apply.
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