Members are able to calculate, where they have an annual allowance charge that is from their pension savings with GMPF, the estimated cost of using the scheme pays facility (i.e. what the permanent reduction would be to your future pension benefits).
The calculator can be used for working out the estimated permanent reduction to your future pension benefits where an annual allowance charge has been incurred for tax year 2017/18 only.
Only use the calculator if:
- you are an active member of the scheme below normal pension age (NPA) with an annual allowance charge that is more than £2,000; and
- your annual allowance charge is from your pension savings with GMPF for tax year 2017/18 only. Please be aware that you have until 31 July 2019 to make an election for scheme pays for the 2017/18 tax year
Do not use the calculator if:
- you are an active member who has already reached NPA; or
- your annual allowance charge relates to a tax year before 2017/18 (as you have missed the deadline for using the mandatory scheme pays facility) or relates to a tax year beyond 2017/18; or
- the charge is less than £2,000; or
- the annual allowance charge relates to pension savings elsewhere (you can only use the scheme pays facility with us where the charge relates to your pension savings with GMPF); and
- you are in the process of retiring or planning to retire soon; or
- you are a deferred member (i.e. your benefits are on hold with GMPF).
The online scheme pays calculator is only intended as a rough guide of the permanent reduction to your pension benefits if you elect to use the scheme pays facility. Decisions must not be made based on these results.
If you meet any of the criteria above and need to do a scheme pays calculation please contact us.
If you have retired and are already in receipt of your pension from which the annual allowance charge resulted from, the scheme pays facility is not available to you.
Calculate the 'cost' of scheme pays
In order to carry out the calculation you will need the following information:
- your NPA date (this is your State pension age (SPA). You can find out your SPA by using the online State Pension Calculator ); and
- the amount of your annual allowance charge (there is guidance provided under the annual allowance FAQ What happens if I exceed the annual allowance limit?" to help you determine the charge); and
- the tax year the annual allowance charge is incurred.
To calculate the estimated permanent reduction to your pension by using the scheme pays facility, click the link below and follow the onscreen directions to see what the scheme pays pension debit (permanent reduction) will be.
If you are still interested in using the scheme pays facility please contact us for an estimate and an election form. When making an estimate request you must tell us how much of the annual allowance charge you want the scheme to pay (this is not the pension input amount confirmed in your pension savings statement) and the relevant tax year in which the annual allowance charge has occurred.
For further information about scheme pays please see our scheme pays FAQ leaflet (181 KB) .