Your pension explained

    How are pensions paid?

    Pensions are paid by bank credit transfer on the last banking day of each month. There is no facility to make payments by cheque.

    When do I receive a pension pay advice and P60?

    A pension pay advice will be issued with your first payment of pension. Unless a change occurs of more than £1 per month to your net pension no further advice will be issued until the following April.

    A pension pay advice will always be issued in respect of your April payment as this is when your pension may increase due to pensions increase. If there is an increase in April then a payslip will also be issued in May.

    Your April pay advice will also include your P60 details.

    A copy of the pay advice and P60 and explanation of the information provided within these two documents can be found on (link on website)

    Will I be taxed on my pension?

    Your pension is regarded as earned income and is assessed under the PAYE tax system. We are obliged by law to comply with coding notices issued by Inland Revenue and such notices are based on your overall income position. The income tax codes which are notified from Inland Revenue will take account of income from sources of which we have no knowledge. It is for this reason that you must direct all income tax queries to the Inland Revenue.

    Please remember to quote your National Insurance Number when contacting the tax office on 0300 200 3300.

    Changes to your tax code will be shown on your pay advice slip.

    When your pension first comes into payment we will normally apply the PAYE code which last applied in your employment. However, to avoid giving you an income tax rebate to which you would not be entitled, the code will be applied on a Month 1 basis and Centre 1 will be asked to confirm the exact code to be used. If your employment code is not known the “emergency” code will be applied and Centre 1 will be asked to supply the appropriate code.

    When your pension first comes into payment unless you have provided me with your P45 (parts 2 and 3) for the current financial year, tax will be deducted from your pension using an emergency tax code of 0T on a month one basis. If you do not have a P45 once you have received your first pension payment you will need to contact HMRC direct on telephone number 0300 200 3300 to discuss any tax issues.

    Will my pension increase?

    Pensions for most pensioners over state pension age include what is known as a Guaranteed Minimum Pension (GMP). The GMP replaces rights to part of your state pension which you would have received had you not joined the Local Government Pension Scheme.

    Your GMP is sometimes called the ‘contracted-out deduction’.

    It is for membership of the Local Government Pension Scheme between 6 April 1978 and 5 April 1997.

    If your pension includes a GMP, you pension increase is paid as follows:

    Type of pension Who pays the yearly increases?

    GMP earned up to 5 April 1988

    The Department for Work and Pensions (DWP) – with your state pension

    GMP earned from 6 April 1988

    Increases up to 3% are paid by us, with your monthly pension

    If the increase is over 3%, the excess over 3% is paid by the Department of Work and Pensions with your state pension

    Non-GMP pension

    All increases are paid by us with your monthly pension

    What is the McCloud Remedy?

    The McCloud Remedy are changes intended to remove the age discrimination found in the "McCloud" court case, with regard to the protections offered when the Government reformed public service pension schemes in 2014 and 2015. This change comes into force on 1 October 2023.

    If you qualify for the protection, you do not need to do anything as East Riding Pension Fund (ERPF) will work out if an addition is due to be paid to you. If you are already retired, ERPF will work out if you are due an addition to your existing pension. This will be done as soon as possible after 1 October 2023.

    The Government has produced a factsheet which includes a flow chart to work out if you are affected. This can be accessed by following this link:

    GOV.UK - LGPS Amendments to the statutory underpin (external website)

    Member Self Service is here!

    Access Member Self Service