Payment of Benefits
Pensions and lump sums payable under the 1987 Scheme are paid by your Police Force. Lump sums are normally paid sooner after your retirement. Pensions are payable in advance, usually at monthly intervals by credit transfer to a bank or building society account.
Survivors’ first benefit payments are made as soon as possible after a member’s death, as time is needed to make contact with the survivor and to establish their entitlement. Subsequent payments to beneficiaries are usually made monthly.
Pensions and lump sums are paid to the person entitled to them (the beneficiary), unless this person is under 18 or incapable of managing his/her financial affairs. In such cases, the payment may be made to the relative or guardian who is caring for the beneficiary although the Force may have a policy for the payment of child pensions directly to a child’s own bank or building society account.
If your pension payments (for all your pensions excluding State Pension) are small and you have reached your SPA, you may ask for the whole of the remaining 2015 Scheme pension payments to be paid to you as a lump sum, the whole of which may be taxable. This is called ‘trivial commutation’ in HM Revenue and Customs terminology. HMRC rules govern what may be payable.
Your pension from the 1987 Scheme can only be paid to you. The payment of an annual pension is treated as earned income for tax purposes, and tax is deducted before instalments of pension are paid, whereas your commuted lump sum is tax-free, as is the lump sum death grant for your survivors.
Your annual pension is subject to PAYE – Income Tax and Dyfed-Powys Police is obligated to comply with the coding issued by HM Revenue & Customs (HMRC).
The payment of your annual pension is administered by the Dyfed Powys Police. Upon your retirement, the tax coding previously applied will continue to be operated on a Month One basis until we receive new coding from HMRC.
If your tax code is not known immediately, an 0T code (no tax free allowance) will be applied as a temporary measure.
All income tax code queries should be raised with the HMRC:
Tel: 0300 200 3300
In resolving your query, you will be required to provide your Surname, National Insurance Number and quote reference no. 615/D1100.
The payment dates for 2020/21 are as follows:
1 April 2020 1 May 2020 1 June 2020 1 July 2020 3 August 2020 1 September 2020 1 October 2020 2 November 2020 1 December 2020 4 January 2021 1 February 2021 1 March 2021
Your pension will be paid monthly, in advance on the above dates.
Should you have any queries regarding the payment of your pension, please contact Dyfed Powys Police (as the payroll provider).
Changing your Address
Even when you start to receive your pension, Dyfed Powys Police will still need to keep an up to date record of your home address. Without an up to date record of your address, you will not receive any payment advice or a Pension Increase statement.
Notification of your new address must be provided in writing to Dyfed Powys Police.
Changing your Account Details
Your pension is paid per calendar month directly into your bank account via BACS transmission. Dyfed Powys Police is responsible for the payment of your pension. The Force receive a lot of calls from pensioners wishing to change their bank or building society account details.
For security reasons, the Force cannot make any of these changes from information provided over the telephone, therefore you will have to provide your change in writing to the Force as soon as possible.
Payroll closure normally falls around the 24th of the month, therefore any change of details received after this date will NOT become effective until the following month's payment.
Pensions in payment are increased annually in line with inflation. These increases are paid to all pensioners aged 55 or over and ensure that the benefit maintains its original buying power. Deferred pensions are also increased to maintain their value up to the date they become payable.
Inflation increases will also be paid:
- to you before you reach the age of 55 if you retired on ill-health grounds or injury, or if you are totally disabled from any occupation and therefore unable to earn a living;
- to your survivors who are in receipt of survivor benefits.
When the pension increase becomes payable it will take account of the movement in the Consumer Price Index (CPI) since the date of your retirement. Survivors’ pensions attract pension increase as soon as they come into payment.
A deferred pension coming into payment at age 60 will attract pensions increase, but if it is paid before age 55 due to permanent disablement it will not be increased until age 55 unless you are disabled from regular full-time work of any kind.