Payroll and Pensions Information

The Government has announced the earliest age that you can take your pension will increase from age 55 to 57 from 6 April 2028.

NYPF Pension Account

Have you registered for My Pension Online yet? If you want to know more about your own pension information you can log into My Pension. You can view your record, see your documents and manage your account all in one place https://nypf.org.uk/my-pension-online/

Nominating a beneficiary

If you die while you are still employed and paying into the pension scheme, LGPS scheme will pay a death grant of three times your assumed pensionable pay. This may be different however if you also have a deferred benefit and/or pension in payment with the Local Government Pension Scheme. Further information can be found on the LGPS Member website on https://www.lgpsmember.org/help-and-support/frequently-asked-questions/?faq-type=after-you-die

If you pay Additional Voluntary Contributions (AVCs) through the in-house AVC provider Prudential, the value of your AVC fund is also payable as a lump sum.

The North Yorkshire Pension Fund (NYPF) has absolute discretion over who to pay your death grant to and will use your nomination as a guide to your wishes. This enables the payment to be made free from Inheritance Tax. It is therefore important that you review and update your nomination regularly especially after a change in personal circumstances like a marriage, the birth of a child, death of a nominee, separation or divorce. You can nominate anyone you wish, including registered charities. You do not have to pay the whole death grant to one nominee, but you must specify how much you want each one to receive e.g. 40%, 60% etc. and the total must add up to 100%.

You can check and update your nominations easily by logging in or registering for My Pension Online https://nypf.org.uk/my-pension-online/

Please follow the link to a Death Grant Nomination form on https://nypf.org.uk/forms-guides-public/forms/

Transferring Previous Pension Rights

On taking up your employment you will be asked to give details about any previous membership of a pension scheme and to indicate whether or not you would like to transfer previous pension benefits into the Local Government Pension Scheme (LGPS). You have 12 months from joining the LGPS to opt to transfer your previous pension rights.

If you transfer your pension under Club rules, the amount of extra pension which is added to your pension account will closely match the amount of pension you had built up in your pension account with your previous pension scheme.

If you have previous membership of the non LGPS scheme, please contact your previous pension provider. If you have more than one previous provider, you will need to contact each one separately. You can ask them to either send the information directly to the NYPF or send it to you to forward on.

 Added Pension

There are two ways to increase your pension benefits and save extra towards retirement.

1. Additional Pension Contributions (APCs)

If you are in the main section of the pension scheme you can pay additional pension contributions to buy extra pension.

You can choose to pay regular monthly contributions over a number of complete years or make a lump sum payment. If you pay monthly, the APCs are deducted from your pay before tax.

A lump sum payment can be made through your pay or directly to the North Yorkshire Pension Fund (NYPF). If you make payment direct to the NYPF you would need to arrange tax relief with HMRC.

When you take your main LGPS pension this will include the extra pension that you have paid for. If you take your pension before Normal Pension Age, the extra pension you have bought will be reduced for early payment. Your pension will be increased if you take it after your Normal Pension Age.

Please use the LGPS Member online calculator to calculate the cost. If you wish to start paying APCs complete the application form and return it to the Pension Fund. Additional information on APCs can be found on the LGPS Member website.

Before you can purchase APCs, you are required to have a medical examination. You should make an appointment for a medical with your GP and ask them to complete the medical examination certificate that the Fund will provide, there may be a charge for this service. The APC contract will only start once the NYPF has received the completed medical questionnaire and your signed election form.

2. Additional Voluntary Contributions (AVCs)

As a member of the North Yorkshire Pension Fund (NYPF) you can pay AVCS through the Prudential, our in-house AVC provider. Paying in-house AVCs builds up a pot of money to provide additional benefits at retirement. You have your own account and can decide how the money is invested. At retirement you can take some or all of your AVC as tax free cash (up to HMRC limits) or use it to buy extra pension. Please see the AVC Guide and the LGPS Member website for more information.

You can pay AVCs if you are in the main section or the 50/50 section.

AVCs are deducted from your pay before tax, therefore if you are a tax payer you receive tax relief automatically.

For example:

If you pay tax at 20%, £100 of extra saving only costs you £80

If you pay tax at 40%, £100 of extra saving only costs you £60

The amount the value of your pension can increase each year without incurring a tax charge is set by HMRC and is known as the annual allowance (AA). The AA is currently set at £60,000.

Most people will be able to pay AVCs without exceeding the AA limit but if you are considering paying a large amount in AVCs in any year you should check on how the AA applies to you by contacting the NYPF.

For further information, including new AVC applications, please visit the Local Government AVC website. Once you are registered for an AVC arrangement, telephone support is available from the Prudential on 0345 6000 343.

50/50 and Opting Out

The Local Government Pension Scheme (LGPS) offers you the flexibility to pay half your normal contribution rate and build up half your normal pension. This is called the 50/50 section of the LGPS and can be used during times of financial hardship. You keep full life and ill-health cover if you join the 50/50 section. If you wish to join the 50/50 section, please complete the 50/50 election form. When you want to move back to the main section, please complete the main section election form. Further information on contribution flexibility can be found on the LGPS member website including how long you can stay in the 50/50 section.

Opting out of the Local Government Pension Scheme (LGPS)

If you are considering opting out of the LGPS, please read the The key features of being in the LGPS first. If you would like to opt out, please complete the Opting out of the LGPS Form and return it to your payroll section.

Pension Estimate

You can request an estimate of your pension benefits built up if you’re thinking about retirement at any age between 55 and 75 (the earliest and latest ages that you can take your pension benefits). If you would like North Yorkshire Pension Fund to provide an estimate of your pension benefits (and you meet the criteria above), please contact them on https://nypf.org.uk/contact-us/ . Please note that you can only request one estimate each year. North Yorkshire Pension Fund will send your estimated figures as soon as possible, but during busy periods your request may take several weeks.

Retiring/Leaving the Service

You can take your LGPS pension at any time from age 55 to 75, as long as you have met the two-year vesting period. The Government has announced the earliest age that you can take your pension will increase from age 55 to 57 from 6 April 2028.

If you haven’t done so already, why not register for My Pension Online where you can calculate your own pension benefits at any time and as often as you like.

Further information can be found on the LGPS Member website and the Retirement Planning Guide.

Once you have decided on your date of leaving, please complete a leaver form on https://nyfrs-dash.achieveservice.com/en/AchieveForms/?form_uri=sandbox-publish://AF-Process-7be4d9cc-cda4-42e1-ba7b-6852a5ea2373/AF-Stage-9179596f-0554-44dc-a778-999308680f41/definition.json&redirectlink=/en&cancelRedirectLink=/en&consentMessage=yes

Your P45 will be available to download and print from the Pay Documents section of My View using the following link – https://selfservice.northyorks.gov.uk/dashboard/dashboard-ui/index.html#/landing

Your P45 form will include your pay and tax paid details, you will not get P60 form upon leaving as it is available to active employees only at the end of the tax year.

Please note, if you are using a works email address for My View (payslips platform), this will need to be updated to a personal one to enable you to access My View after leaving. You can update your email address using the My Details – Contact Details section in My View.

Useful Links

If you are employed in a support role or fire control, then you will be a member of the Local Government Pension Scheme. Further information on this pension scheme can be found at https://www.lgpsmember.org/

North Yorkshire Pension Fund on https://www.nypf.org.uk/

LGPS Bulletins can be obtained on https://www.lgpsregs.org/bulletinsetc/bulletins.php

NYPF Pension Account on https://nypf.org.uk/my-pension-online/

Independent Financial Advice https://www.unbiased.co.uk/

Prudential (AVC provider) Local Government Pension with AVCs | Prudential (mandg.com)

Money Helper (impartial help backed by government and free to use) https://www.moneyhelper.org.uk/en