General Information

Arrangements on Death

The death of someone close is always a stressful time and it will be helpful if your next of kin knows what will happen to your MPS benefits in the event of your death.

The first step when a beneficiary dies is for the Scheme’s administration office to be notified of the death as soon as possible. This can be done in writing or by telephone.

The information required is:

• the full name of the deceased pensioner,
• the pensioner's address,
• the Scheme number or National Insurance number
• date of death,
• the name of nearest relative and their relationship to the deceased,
• the address to which any communication should be sent

Administration office staff will need information about the deceased and about the next of kin. They will write to the next of kin, usually with a week.

Where benefits are already in payment, the administration office has a duty to recover any overpayment of pension paid in respect of any period after the date of death.

The circumstances of each case may vary, but if a widow/er or dependant’s pension is payable, the applicant will be asked to complete a claim form, and also to send a copy of the Death Certificate. A Marriage Certificate may also be requested. If an adult dependant’s pension is being claimed, additional information will be required. This will be explained when the administration office staff write to the applicant.

Discretionary benefits

The benefits provided by the MPS for your period of membership are set out in the Scheme Rules and the Scheme’s Trustees have a duty to pay benefits in accordance with the provisions of those Rules.

The Rules give the Trustees some discretion on deciding how to pay particular benefits in certain circumstances. This includes dependant’s benefits on the death of an MPS member. Where they have this discretion, the Trustees will take full account of all relevant circumstances in making any decisions on the payment of Scheme benefits.

Payee Arrangements

If you are receiving an MPS pension and find yourself unable to manage your pension, the Committee of Management can appoint a payee to receive the pension on your behalf and use it entirely for your benefit. Further details of these arrangements are available from the Administration Office.

 

Assignment of benefits/Court Orders

You may not assign your MPS benefits to another person or use them as security for a loan. If you become incapable of managing your own affairs, then a payee can be appointed to receive your pension on your behalf. Typically this would be a close relative or perhaps the manager of a residential home.

The Courts can make certain orders against the Scheme to make a deduction of pension. These may be Attachment of Earnings Orders, Income Payment Orders and Orders to make payments to a former spouse as part of a divorce settlement. The Scheme is obliged to comply with these Orders.

Notifying the Scheme if your circumstances change

Please write and let the MPS administration office know as soon as you can if you change address. This will make sure that the MPS can continue to keep in touch with you about the Scheme and about your benefits. You should also let the Scheme know if your marital status changes.

If you are receiving your pension by credit transfer to your bank or building society account, please write and let the administration office know if your account details change.

Forms for both address changes and bank account changes can be found in the Requests and Forms section of this website. Please complete, print off and sign these before sending them to the administration office.

More information about the scheme

As well as this website there are Scheme publications and reports which will give you more information about the MPS. A summary of the Scheme’s Annual Report and Accounts is included in the spring issue of the newsletter. The full Report and Accounts are available on request to the Scheme Secretary. Also available from the Secretary are copies of the Scheme and Rules and reports prepared by the Scheme Actuary on each valuation of the Scheme.

As well as this website, there are publications and reports which will give you more information about the Scheme. All of these can be obtained on request from either the administration office or the Scheme Secretary by pressing here.

Pension Payslips

All Scheme pensioners receive a payslip each year, following the autumn increase to guaranteed pensions. Further payslips are not issued throughout the year unless the pension payment amount changes by more than 25p.

 

Pensions Newsline

The Trustees send this newsletter to Scheme members twice a year and copies of the most recent newsletters can be found on the ‘Publications’ page of this website. If you do not receive copies, or would like any recent back copy, please contact the administration office.

Actuarial Valuation Review and Report

The Scheme’s Actuary carries out a review or valuation of the Scheme at least every three years. Scheme members can ask for a copy of the latest valuation report.

Annual Report and Accounts

The Scheme’s annual Report and Accounts includes a report from the Committee of Management and a financial review of the year. A summary of the Report and Accounts is always included in the spring edition of Newsline, but any Scheme members can ask for a copy of the full Report and Accounts.

Statement of Entitlement to a Guaranteed Cash Equivalent

If you have a deferred pension in the Scheme, which is not yet in payment, you can ask for details of the cash equivalent value of your benefits. This is the amount which could be transferred to another approved pension arrangement if you wish. In most cases the value given is guaranteed for three months. You can have one free statement in any year but charges may be made for additional statements.

Statement of Entitlement to a Deferred Pension (benefit statements)

The Trustees will send deferred pensioners a personal benefit statement showing up to date details of their Scheme benefits every three years, following each valuation of the Scheme. You may ask for up to date details once a year.

If you paid Additional Voluntary Contributions (AVC’s), you will receive details of your AVC fund in a separate benefit statement.

State Pension Benefits

Your retirement income should come from more than one source. Most Scheme members are entitled to a State Pension as well as a Scheme pension and you may have income from other pension arrangements.

There are two parts to the State pension currently payable from State Pension Age – the Basic Pension and the State Earnings-Related Pension, which was replaced in 2002 by the State Second Pension (SP2).

Basic Pension

The basic pension is a flat rate amount paid to everyone from State Pension Age who has paid sufficient National Insurance Contributions. Membership of the MPS does not affect entitlement to the basic State pension.

The State Graduated Pension Scheme

Members who were contributors between April 1961 and April 1975 were contracted out of the State Graduated Pension Scheme. The concept of contracting out of the graduated scheme was essentially the same as for contracting out of SERPS. The Scheme must pay benefits, known as Equivalent Pension Benefits, at least equal to those that would have been earned in the Graduated Scheme. MPS pensions built up for contributing service during this period are very small.

State Earnings-Related Pension Scheme (SERPS)

Recent contributors to the Scheme were contracted out of the State Earnings Related Pension Scheme (SERPS). The MPS “contracted-out” of SERPS when it began, in April 1978, and Scheme members paid the lower contracted out rate of National Insurance Contributions whilst they were contributing members of the MPS. In exchange, for Scheme members who have benefits earned for any period after April 1978, the Scheme promised the State that, from State Pension Age, we would pay at least a minimum level of pension. This minimum level is called the Guaranteed Minimum Pension (GMP) and it replaces a comparable benefit otherwise payable by the State.

The Scheme therefore ensures that your pension is not less than the GMP for contributing members from 6 April 1978, and meets the requirements of the Pensions Scheme Act 1993 in this respect. Members may find that they have some residual SERPS pension payable by the State but it will be smaller than for those who remained contracted in.

The GMP is not an additional pension. It is simply a minimum below which your Scheme pension must not fall. Most members will have pension entitlements from the MPS in excess of the GMP. There are special arrangements for RPI increases on GMP from State Pension Age and for widows’ and widowers’ pensions. These are explained in the section about pensions increases.

The Scheme increases any GMP earne d after 5 April 1988 by the increase in the cost of living up to 3% each year. The rest of the increase on the GMP is paid by the State, currently from April each year.

Some married female members, who chose to pay reduced National Insurance Contributions, do not qualify for the additional component from the State and so are not entitled to a GMP from the Scheme.

The State Second Pension

This scheme has replaced SERPS and is designed to help low earners. The new scheme took effect from April 2002.

HM Revenue & Customs (HMRC)

Up to 6 April 2006, the Scheme met the qualifying requirements as an ‘exempt approved scheme’ for the purposes of Chapter 1 of Part XIV of the Income and Corporation Taxes Act 1988. This means that pension contributions were not treated as taxable earnings, cash lump sums on retirement and death were tax-free and the Scheme’s fund’s investment income was mainly exempt from tax.

In exchange for these tax advantages, the benefits that the Scheme provided were subject to certain Inland Revenue Limits, based on salary and service. MPS benefits generally fell well within these limits and for most members could be paid with no restrictions. In April 2005, the Inland Revenue merged with HM Customs & Excise to become HM Revenue and Customs (HMRC).

On 6 April 2006, the HMRC limits on contributions and benefits from approved pension schemes were replaced. Pension schemes which operated under the approved basis, like the MPS, were able to change status and became registered pension schemes. All types of registered pension scheme come under one set of regulations. For most people, the 2006 tax regime applies to all sources of pension income, except State pensions.

 

Income Related State and Council Benefits

Your Scheme benefits and any increases may be taken into account by the DWP and local councils in working out your entitlement to Income Support, Council Tax rebates and Housing Benefit. Unfortunately there is no action the Trustees can take to prevent the DWP and local authorities from applying their rules. The Trustees have looked carefully at other forms of payment of benefits but the Scheme is restricted by HMRC limits on the way it can pay its benefits.

About the information given on the Scheme's website

The legal document, which governs the operation of the Scheme, is the Mineworkers’ Pension Scheme’s Scheme and Rules. This is a document which started as a set of Government Regulations laid under the Coal Industry Act 1994 but have since been amended by the Secretary of State for Trade and Industry. Other relevant provisions are contained in the Government Guarantee, the constitution of the Trustee Company and the general law covering pension schemes.

This website is a guide to the main terms of the Scheme and Rules, which apply to pensioners and deferred pensioners, and it should be treated only as a guide. It is correct at the time it was included on the website, but may be revised in the future in the light of changes to the Scheme, changes to the law and regulations governing pension schemes.

The Scheme and Rules of the Mineworkers’ Pension Scheme, and the other legal documentation, contain the Scheme’s full provisions and override this website in the event of any inconsistency. You can request a copy of the up to date version of the Scheme and Rules from the administration office. The original Regulations are available from HMSO under the reference S.I.1994 No 2577.

References to employment with British Coal (or with the National Coal Board, if you were a member of the MPS before March 1987) includes employment with any other employer which qualified you for a pension under the Scheme.

The website will be regularly reviewed and updated, but you should always check the current position with the administration office if you are unsure.

Statements about taxation were believed to be correct at the date the text was included in the website but no warranty is given that taxation laws will not be changed in the future.

Service Standards

The administration office operates to standards of customer service set up by the Trustees. These cover payment of benefits and response times to members’ enquiries.

Where can I get information about my Scheme benefits?

The administration office will be able to help you with information and advice when you make an enquiry about your Scheme benefits.

Their address is:

Mineworkers’ Pension Scheme
Sutherland House
Russell Way
Crawley RH10 1UH

Please have your National Insurance number handy when you telephone. The administration office can also help if you need to get in touch with other offices, about any other coal industry benefits.

Who can answer questions about tax?

If your total retirement income is greater that your personal income tax allowance, then your Scheme pension will be subject to income tax in the same way as earnings.

Staff at the administration office may be able to help you with some of your enquiries about any tax deducted from your Scheme pension. However, the HMRC is usually best placed to answer your questions about liability for tax and how this is assessed in detail. If you have any detailed questions about tax you should write to:

HMRC
Sefton Area, The Triad, Stanley Road, Bootle Maritime L75 1HW
or
telephone them on 0845 3003939

When you write or telephone, please give your National Insurance number and quote the reference 083-MPS.

Who can give more information about the Scheme?

If you have any questions about Trustee policy you can contact the Scheme Secretary who acts on behalf of the Scheme’s Trustees. You can write to the Secretary at:

Coal Pension Trustees Services Limited
Hussar Court, Sheffield S6 2GZ
or
telephone the office on 0114 285 4602

Resolving Pension Problems

It may be that you have a concern of difficulty about your pension from the Scheme. This section will help you work out what you can do.

The Trustees aim to ensure that the Scheme is administered and managed to high standards but there may be times when you are unhappy about something concerning your benefits or another matter relating to your membership of the Scheme.

If you do have a query or problem, please contact the administration office first. They will be pleased to help. Most queries and problems can normally be sorted out to your satisfaction.

However, if you are still unhappy about any matter you may wish to consider making a formal complaint through the Scheme’s own Internal Dispute Resolution procedure. You should use this if you have not been able to resolve any problems about the Scheme with the administration office or with the Scheme’s secretariat staff at Coal Pension Trustees Services Limited. You can ask for the guide to the Internal Dispute Resolution procedure by contacting the administration office at:-

Mineworkers’ Pension Scheme
Sutherland House
Russell Way
Crawley RH10 1UH

How does the Dispute Resolution procedure work?

You must make a formal complaint in writing to the Chief Executive, or the Benefits Manager, at Coal Pension Trustees Services Limited, Hussar Court, Sheffield S6 2GZ. The first stage involves the Chief Executive, or the Benefits Manager, considering your complaint on the Trustees’ behalf. You will usually receive a decision on your complaint within two weeks, although complex matters may take a little longer.

Can I take my complaint further?

If you are not satisfied with the first stage decision, you can ask the Trustees themselves to consider your complaint. This is the second stage of the Dispute Resolution procedure. The Trustees will usually be able to give you their decision within two months of your appeal. They may confirm the first stage decision, or they may take a different view.

If you are not satisfied with the Trustees’ decision, or if you would like any independent help at any stage, you can contact the Pensions Advisory Service (TPAS) for help and advice.

The Pensions Advisory Service (TPAS)

TPAS is an independent voluntary organisation with locally based advisers who will give you help and advice on pension matters in confidence and free of charge. Your local Citizens Advice Bureau will have a list of TPAS advisers’ names, or you can contact TPAS at:

11 Belgrave Road, London SW1V 1RB

If TPAS are unable to resolve matters for you, you may ask the Pensions Ombudsman to investigate your complaint.

The Pensions Ombudsman

The Pensions Ombudsman, appointed by the Government, may investigate and decide any complaint or dispute of fact or law in relation to the Scheme made or referred to him in accordance with the Pension Schemes Act 1993.

Although they are separate organisations, the Pensions Ombudsman is at the same address as TPAS:

11 Belgrave Road, London SW1V 1RB

The Registrar of Pension Schemes

The Scheme has provided the Registrar of Pension Schemes with details about the Scheme and a contact name and address. The Registrar holds a list of the up to date addresses of over 250,000 pension schemes to help former scheme members trace their pension rights. If you have lost contact with a previous pension scheme, or you lost contact with the MPS, you can write to the Registrar at:

P.O. Box 1NN, Newcastle upon Tyne NE99 1NN

The Pensions Regulator

The Pensions Regulator (TPR) can intervene if it considers that an employer, a scheme’s trustees, or its advisers are not carrying out their duties correctly. You can get in touch with TPR at:

Invicta House, Trafalgar Place, Brighton BN1 4DW