Posted in General News and Newsletters
We've reached 45,000 members!
Workers Pension Trust has now enrolled more than 45,000 members into the Scheme from more than 4000 companies across the UK. We are pleased that Workers Pension Trust continues to go from strength to strength, with more and more people joining the Scheme every day.
Auto-enrolment reverses the decline in workplace saving
The Pensions Regulator has published its latest annual auto-enrolment commentary and analysis. In 2012, 55% of staff were saving into a workplace pension and by 2016 that figure had risen to 78%. More than 8.5 million people are now saving into a workplace pension making it well and truly the norm.
Your pension contributions will increase in 2018 and 2019
By law, minimum contribution levels for automatic enrolment are increasing. The increases are planned in two phases from 6 April 2018 and then again in April 2019. This will enable your pension to grow.
| Until 5 April 2018 | 6 April 2018 to 5 April 2019 |
6 April 2019 onwards |
|
| Employer Contribution | 1% | 2% | 3% |
| Employee Contribution | 1% | 3% | 5% |
| Total | 2% | 5% | 8% |
Please note that originally the first phase of the increases was due to start in October 2017. However, in April 2015 these dates were changed by the government to start from 6 April 2018.
Your options at retirement
At retirement you have the option to take your whole pension account as a one-off cash lump sum, 25% will be tax free and the rest will be taxed at your marginal rate. You can also get a guaranteed income by buying an annual pension (an annuity) with an insurance company.
We will write to you in advance of your 65th birthday to provide you with your retirement options. You may however claim your benefits at any time from age 55 whether you leave your employer or not. There are circumstances when you can take your retirement benefits earlier than age 55 (for example, if you are forced to retire due to ill-health or are terminally ill).
If you would like to take your benefits before your 65th birthday, please contact us to request your options.
Deciding what to do with your retirement income is important and you should think carefully about what is right for you. If you’re thinking about retiring soon, Pension Wise is a Government service that offers free and impartial guidance to help you understand your options at retirement. This service is available to those over age 50.
You can
Be aware of pension scams
Pension scams, where people may be tricked into handing over their pension pots by scammers, are on the increase. Pension scammers will do whatever it takes to trick you – like cold calling, pretending they’re from the government, or promising an amazing deal if you sign up straightaway. Sadly, thousands of people have lost their life savings from scammers. If you’re considering transferring your benefits out of the Scheme take your time and check everything for yourself, don’t take someone else’s word for it. You can find out more about the dangers of pension scams at http://www.thepensionsregulator.gov.uk/individuals/dangers-of-pension-scams.aspx
Chairman’s statement
New rules introduced in 2015 require all Defined Contribution (DC) pension schemes such as Workers Pension Trust to produce an annual Chairman’s statement. This, amongst other things, covers:
You can read the Chairman’s statement for the last Scheme year at workerspensiontrust.co.uk/chairman's statement
Let us know if you've moved!
It’s important that you keep your address up to date. If you have moved house please keep us informed of your new address by completing and returning a Change of Details Form.
Do we have your email address?
We are changing the way we communicate with you. We want to be more environmentally friendly, reduce costs and continue to meet member demand, so we are encouraging you to register your email address with us. We can then send you non-personalised communications, such as this newsletter and general information about Workers Pension Trust, by email rather than post.
To register or update your email address, please email quoting your name and NI number. Information such as your Annual Benefit Statement will continue to be sent to your home address for the time being.
Need answers?
If you have a question about your Workers Pension Trust pension, you might find the answer you’re looking for in our online FAQ section. The website also has useful guides to help you understand different pension topics, and forms to help you manage your membership.