PAYMENT OF PENSIONS AND PAYROLL
The following are the pensioner payrolls for MMPS:
(1) MONTHLY
Pensions are paid monthly in advance on the first of the month unless this falls on a weekend or Bank Holiday, in which case your pension will be paid on the last working day of the previous month.
(2) QUARTERLY, INTERNATIONAL AND ISLE OF MAN
Pensions are paid quarterly in advance on the first of September, December, March, and June unless this falls on a weekend or Bank Holiday, in which case your pension will be paid on the last working day of the previous month.
NB. Payments to overseas bank accounts are made on a quarterly basis. This arrangement is used to reduce the impact of the higher bank charges attributable to overseas payments.
PAYSLIPS
Pension advice slips are issued with the first payment and subsequent payslips will only be issued if the pension amount changes by £5.
PENSION INCREASES
Your Main Scheme pension is subject to annual cost-of-living increases which is currently measured by the annual increase (if any) in the Consumer Prices Index (CPI) in January.
Pension increases are applied as follows:
Pension in relation to service | Increase awarded |
Prior to 1 September 2006 | CPI, max 5% pa |
From 1 September 2006 | CPI, max 2.5% pa |
NB. Pension increases are applied from 1 September following commencement of the pension. However, in the case of an ill-health pension which commenced part way through a Connexional year, the first increase will be on 1 September after the pension has been in payment for at least 12 months. (If you elected at retirement for your Long Service or AVC Fund to increase at a different level, these increases will be applied accordingly).
INCOME TAX
Your pension, including pensions from other arrangements (if any) and your State Pension are subject to Income Tax, as these are treated as earned income under the PAYE system. Allowances against tax may cover your State Pension, which means it will be paid without any tax deduction. If your pension from us, plus your State Pension, and income from other sources exceeds your allowances, you will be liable to tax on the pension you receive from us. This means that when your State Pension increases, your tax code will change and, possibly, you will pay more tax on the MMPS pension.
NB. You should contact the tax office to inform them of your various sources of income. Please review the tax code that is applied to your pension and if you have any queries about tax deducted, you should in the first instance, contact the tax office at the following address:
Pay As You Earn and Self Assessment
HM Revenue & Customs
BX9 1AS
Tel: 0300 200 3300.
PAYE reference: 120/M31273
Please quote both your National Insurance number and our PAYE reference in all communications with HMRC.
CHANGES TO YOUR HOME ADDRESS AND / OR BANK ACCOUNT
In order to ensure that your instructions are applied in time for the next pension payment date, it is important that you inform the Pensions Office of any changes to your home address and/or bank account in writing before the 21st of the month preceding your next pay date.
NB. Changes may be notified by email to: pensionshelp@methodistchurch.org.uk
Fund for the Support of Presbyters & Deacons (FSPD)
The FSPD exists to be of assistance to ministers’ widows. If you feel that you have any items of expenditure, the payment of which causes you concern, please get in touch with the Finance Department at Methodist Church House.
Medical Benevolent Fund
If you feel that a short break would be of benefit - do apply for assistance from this Fund too – please request an application form from the Finance Department at Methodist Church House.