A 1958 contributor's guide to the London County Council Superannuation Scheme.
Object
Pamphlet
Production date
1950s
Object number
2016.119
Physical Description
A 1958 contributor's guide to the London County Council Superannuation Scheme (a pension plan). The booklet has 56 pages and a blue cover with red lettering. There is also a loose insert detailing a modification.
Associated Organisation
Associated Person
Material
Paper
Dimension
Height: 183mm
Width: 124mm
Width: 124mm
On display?
No
Inscription
A CONTRIBUTOR’S GUIDE TO THE SUPERANNUATION SCHEME
LONDON COUNTY COUNCIL
(4) The CHILDREN’S PENSION is also based on the amount (apart from any surrender) of the retirement pension or injury allowance or both which the contributor was receiving just before he died or which he would have got if he had retired on grounds of permanent incapacity just before his death in the service, and cannot exceed one-third of that amount. Its actual rate from time to time depends on how many eligible children are still under age 16 or undergoing continuous full-time education or training thereafter and also on whether the contributor left a widow who is still alive. (see also paragraph 6g.)
No children’s pension is payable if the contributor’s wife had died before he became a contributor, unless he had remarried during his service.
The children’s pension usually stops if the contributor’s widow remarries but it may start again on her death. A girl who marries normally becomes ineligible for any further payment of children’s pension.
(5) The DEATH GRANT depends on whether a widow’s or children’s pension becomes payable on the death occurs in the service or after retirement (this includes all three cases under paragraph 34 (b)). There are safeguards to make sure that, whatever the form in which benefits are paid, they shall not in total amount to less than the death grant which would have been payable if the contributor had died in the service as a bachelor, and this in turn is never less than his own contributions with interest.
If a man dies in the service and leaves a widow, or children who qualify for pensions, the death grant is normally 1/8oth of average remuneration for each year of contributing service.
If any other contributor dies in the service the death grant is the greatest of the following three sums
(i) 3/8oths of average remuneration for each year of contributing service; and
(ii) The total of his contributions and interest (other than supplementary contributions to secure pensions for nominated dependants); and
(iii) His average remuneration.
16
(c) If the contributor dies within 12 months after resignation the position is similar to (a) and (b) above except that (b) (iii) does not apply.
(d) If the contributor dies after retirement
(i) If no widow’s or children’s pension is payable the total retirement pension and retirement grant already paid to him will be deducted from the amount under (b). (If he has surrendered part of his pension the whole amount of the pension will be deducted as if there had been no surrender);
(ii) If he leaves a widow who will get a widow’ pension, there is no death grant but some residuary lump sum payment may be due to her if she remarries soon after the contributor’s death or to her legal personal representatives if she dies shortly after him;
(iii) if he leaves children who will get a children’s pension, but no widow, there may be something payable by way of death grant as in (i) above after allowing for future payments of the children’s pension.
(6) The SHORT SERVICE GRANT is one year’s average remuneration.
40. A contributor who resigns at any time after he has reached age 60 but before he has either completed 40 years of service or reached age 65 is not entitled to retirement benefits, and would normally receive only the return of his contributions with interest (see paragraph 86). If however he has completed 10 years’ service the Council may agree to give him a reduced retirement pension and retirement grant. The extent of the reduction depends on how much the date of actual retirement precedes the date on which he would ordinarily become entitled to retire on pension. Benefits payable on or after his death are not affected.
Section E—Women Contributors with Dependent Permanently-Incapacitated Husbands.
41. A married woman contributor may in certain circumstances elect to give up her normal entitlement to benefits in exchange for benefits calculated as if she were a married man (see paragraph 39 (2) and (5) ) and if she does so her widower
17
Request. The Council is not able to lend money to a contributor on the security of his contributions, nor to advance money on account of prospective benefits, and benefits cannot be assigned to a third party.
98. Income tax relief is generally allowed on contributions to the following extent:
Current contributions—92| per cent. (men) and 85 per cent. (women). (The balance of the contribution, which goes to provide the lump sum grant is not taxable.)
Additional contributory payments—none.
Additional contributions for added years—92½ per cent. (men) and 85 per cent. (women).
Supplementary contributions in respect of pensions for nominated dependants—100 per cent. (There may be some restriction of relief if additional or supplementary contributions are paid at a very high percentage rate.)
For Council employees the tax office, to whom all queries on tax relief on contributions should be addressed, is usually Southwark 2nd District, Lancaster House, 115 Lancaster Street, London, S.E.1 (telephone HOP 3111). (Teachers are dealt with by Southwark 3rd District at the same address.) Persons not employed by the Council should ask their employer for the address of their tax office.
99- A contributor is not liable to pay income tax on any amount paid to him by way of return of contributions and interest on leaving the service.
100. All types of pension are treated for income tax purposes as ‘earned income’ and the Council arranges for dedication of tax under the P.A.Y.E. arrangements. A lump sum retirement grant or short service grant is not liable to tax.
101. A death grant forms part of a contributor’s estate for Estate Duty purposes. The capital value of a widow’s pension, etc., is treated on the death of her husband as a separate estate, but it is usually not large enough to make it liable for the payment of Estate Duty.
34
APPENDIX 1
Action which a contributor can or should take (see paragraph 5)
ON ENTRY
Paragraphs
Within 5 months after becoming subject to the Scheme—
Disclose all previous public or semi-public service and declare intentions as to repaying returned contributions, making an additional contributory payment or asking for application of interchange arrangements .. .. .. .. .. 70-72
If an insurance policy scheme has applied within the previous 12 months, choose between remaining subject to it or coming on the Fund.. .. .. .. .. .. .. .. 92, 93
In the case of a teacher to whom a local government scheme has applied within the previous 12 months, choose between coming on the Fund or transferring to the Teachers Scheme .. .. .. .. .. .. .. .. 9
Within 6 months after becoming a contributor—
Decide whether to apply for added years .. .. .. 77-8a
Within 3 months after receiving a certificate of service—
Decide whether to challenge any of the particulars.. .. 76
DURING SERVICE
During a period without pay or on reduced pay (other than for medical reasons) or during a period of national service, or within 1 month after return to full-time duties—-
Decide whether to pay contributions for the period .. 15, 15
Within 1 month after suffering a permanent reduction in pay for medical reasons—
Decide whether to continue to pay contributions as before .. 17
Within 1 month after transfer to part-time duties, etc.—
Decide whether to continue as a contributor .. .. 10
Before transferring to or from a position in the Council’s local health or child care services—
Consider the effect on retirement conditions .. .. 47-52
(Man) On marriage—
Tell the Comptroller of the Council .. .. .. .. 34
(Woman) If her husband becomes permanently incapacitated and wholly or mainly dependent on her, or at any time later—
Consider whether to ask for the ‘dependent widower’s pension arrangements to apply to her .. .. .. .. 41-43
Any contributor with at least 10 years to serve before he can retire voluntarily—
Consider whether to make a nomination to secure a pension for a nominated dependent .. .. .. .. .. 82-85
35
LONDON COUNTY COUNCIL
(4) The CHILDREN’S PENSION is also based on the amount (apart from any surrender) of the retirement pension or injury allowance or both which the contributor was receiving just before he died or which he would have got if he had retired on grounds of permanent incapacity just before his death in the service, and cannot exceed one-third of that amount. Its actual rate from time to time depends on how many eligible children are still under age 16 or undergoing continuous full-time education or training thereafter and also on whether the contributor left a widow who is still alive. (see also paragraph 6g.)
No children’s pension is payable if the contributor’s wife had died before he became a contributor, unless he had remarried during his service.
The children’s pension usually stops if the contributor’s widow remarries but it may start again on her death. A girl who marries normally becomes ineligible for any further payment of children’s pension.
(5) The DEATH GRANT depends on whether a widow’s or children’s pension becomes payable on the death occurs in the service or after retirement (this includes all three cases under paragraph 34 (b)). There are safeguards to make sure that, whatever the form in which benefits are paid, they shall not in total amount to less than the death grant which would have been payable if the contributor had died in the service as a bachelor, and this in turn is never less than his own contributions with interest.
If a man dies in the service and leaves a widow, or children who qualify for pensions, the death grant is normally 1/8oth of average remuneration for each year of contributing service.
If any other contributor dies in the service the death grant is the greatest of the following three sums
(i) 3/8oths of average remuneration for each year of contributing service; and
(ii) The total of his contributions and interest (other than supplementary contributions to secure pensions for nominated dependants); and
(iii) His average remuneration.
16
(c) If the contributor dies within 12 months after resignation the position is similar to (a) and (b) above except that (b) (iii) does not apply.
(d) If the contributor dies after retirement
(i) If no widow’s or children’s pension is payable the total retirement pension and retirement grant already paid to him will be deducted from the amount under (b). (If he has surrendered part of his pension the whole amount of the pension will be deducted as if there had been no surrender);
(ii) If he leaves a widow who will get a widow’ pension, there is no death grant but some residuary lump sum payment may be due to her if she remarries soon after the contributor’s death or to her legal personal representatives if she dies shortly after him;
(iii) if he leaves children who will get a children’s pension, but no widow, there may be something payable by way of death grant as in (i) above after allowing for future payments of the children’s pension.
(6) The SHORT SERVICE GRANT is one year’s average remuneration.
40. A contributor who resigns at any time after he has reached age 60 but before he has either completed 40 years of service or reached age 65 is not entitled to retirement benefits, and would normally receive only the return of his contributions with interest (see paragraph 86). If however he has completed 10 years’ service the Council may agree to give him a reduced retirement pension and retirement grant. The extent of the reduction depends on how much the date of actual retirement precedes the date on which he would ordinarily become entitled to retire on pension. Benefits payable on or after his death are not affected.
Section E—Women Contributors with Dependent Permanently-Incapacitated Husbands.
41. A married woman contributor may in certain circumstances elect to give up her normal entitlement to benefits in exchange for benefits calculated as if she were a married man (see paragraph 39 (2) and (5) ) and if she does so her widower
17
Request. The Council is not able to lend money to a contributor on the security of his contributions, nor to advance money on account of prospective benefits, and benefits cannot be assigned to a third party.
98. Income tax relief is generally allowed on contributions to the following extent:
Current contributions—92| per cent. (men) and 85 per cent. (women). (The balance of the contribution, which goes to provide the lump sum grant is not taxable.)
Additional contributory payments—none.
Additional contributions for added years—92½ per cent. (men) and 85 per cent. (women).
Supplementary contributions in respect of pensions for nominated dependants—100 per cent. (There may be some restriction of relief if additional or supplementary contributions are paid at a very high percentage rate.)
For Council employees the tax office, to whom all queries on tax relief on contributions should be addressed, is usually Southwark 2nd District, Lancaster House, 115 Lancaster Street, London, S.E.1 (telephone HOP 3111). (Teachers are dealt with by Southwark 3rd District at the same address.) Persons not employed by the Council should ask their employer for the address of their tax office.
99- A contributor is not liable to pay income tax on any amount paid to him by way of return of contributions and interest on leaving the service.
100. All types of pension are treated for income tax purposes as ‘earned income’ and the Council arranges for dedication of tax under the P.A.Y.E. arrangements. A lump sum retirement grant or short service grant is not liable to tax.
101. A death grant forms part of a contributor’s estate for Estate Duty purposes. The capital value of a widow’s pension, etc., is treated on the death of her husband as a separate estate, but it is usually not large enough to make it liable for the payment of Estate Duty.
34
APPENDIX 1
Action which a contributor can or should take (see paragraph 5)
ON ENTRY
Paragraphs
Within 5 months after becoming subject to the Scheme—
Disclose all previous public or semi-public service and declare intentions as to repaying returned contributions, making an additional contributory payment or asking for application of interchange arrangements .. .. .. .. .. 70-72
If an insurance policy scheme has applied within the previous 12 months, choose between remaining subject to it or coming on the Fund.. .. .. .. .. .. .. .. 92, 93
In the case of a teacher to whom a local government scheme has applied within the previous 12 months, choose between coming on the Fund or transferring to the Teachers Scheme .. .. .. .. .. .. .. .. 9
Within 6 months after becoming a contributor—
Decide whether to apply for added years .. .. .. 77-8a
Within 3 months after receiving a certificate of service—
Decide whether to challenge any of the particulars.. .. 76
DURING SERVICE
During a period without pay or on reduced pay (other than for medical reasons) or during a period of national service, or within 1 month after return to full-time duties—-
Decide whether to pay contributions for the period .. 15, 15
Within 1 month after suffering a permanent reduction in pay for medical reasons—
Decide whether to continue to pay contributions as before .. 17
Within 1 month after transfer to part-time duties, etc.—
Decide whether to continue as a contributor .. .. 10
Before transferring to or from a position in the Council’s local health or child care services—
Consider the effect on retirement conditions .. .. 47-52
(Man) On marriage—
Tell the Comptroller of the Council .. .. .. .. 34
(Woman) If her husband becomes permanently incapacitated and wholly or mainly dependent on her, or at any time later—
Consider whether to ask for the ‘dependent widower’s pension arrangements to apply to her .. .. .. .. 41-43
Any contributor with at least 10 years to serve before he can retire voluntarily—
Consider whether to make a nomination to secure a pension for a nominated dependent .. .. .. .. .. 82-85
35
