Payment of Benefits
Retirement pensions are paid by the Police Force from which you retired. Pensions are payable in advance, usually at monthly intervals by credit transfer to a bank or building society account.
Payment of survivors’ benefits begins as soon as possible after a member’s death (time is needed to make contact with the survivor and establish entitlement). Subsequent payments to survivors are made monthly.
Pensions and lump sums are paid to the survivor unless this person is under 18 or incapable of managing his or her financial affairs. An eligible child’s pension payable to an eligible child who is under 18 and who is in the care of your adult survivor must be paid to that adult survivor.
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 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 Bank 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. These increases are paid to all pensioners who have reached NMPA. Deferred Pensions are also increased to maintain their value up to the date they come into payment.
Increases are also paid:
- if before you reach NMPA you are in receipt of an ill-health pension or a Deferred Pension paid early on ill-health grounds; and
- 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 beginning date of your pension. Subsequent increases take place in April of each year and are based on the rise in the CPI in the 12 months up to the end of the previous September.
The pensions increase is applied to pensions payable from the 2015 Scheme irrespective of your country of residence after your retirement, although increases to your State Pension and any Guaranteed Minimum Pension (GMP) element in your pension may be affected if you live outside the UK.
If you have left Eligible Service with an entitlement to a Deferred Pension and you are re-engaged as a member of a Police Force, your gap in service will affect how your pension is treated.
Re-engaged after less than 5 years:
- Your earlier service and later service will form part of a continuous period of pensionable service.
- Your 2015 Scheme pension will be revalued as if during the gap in service you were an Active Member (i.e. in line with CPI + 1.25% per year) but you received no Pensionable Earnings.
- You will continue to accrue earned pension when you are re-engaged.
The above does not apply if you opt out on returning to Eligible Service.
Re-engaged after 5 years or more:
- Your original 2015 Scheme pension will stay a Deferred Pension and you begin a new continuous period of pensionable service. You may qualify for a separate pension in addition to your Deferred Pension. There is no option to join up these benefits to make a single pension.
Your pension from the 2015 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.