PENSIONER INFORMATION

FINAL SALARY

This section provides information for members who are receiving a pension from the Final Salary Section.

TAX ON PENSIONS

Whether you will pay tax on your retirement pension will depend on your personal financial circumstances. However, we are obliged by HM Revenue & Customs (HMRC) to deduct tax at the Basic Rate from all pensions until our payroll department receives your revised tax code.

Once you have started to receive your pension, you can contact your local tax office to follow up the issuing of your new tax code.

You can find your local tax office on the HMRC website at http://www.hmrc.gov.uk.

INCREASES TO YOUR PENSION

On April 1^st each year your pension in payment will be increased by the increase in the Retail Price Index over the calendar year, subject to a limit of 5% per annum. The increase is applied to the part of your pension that is in excess of any Guaranteed Minimum Pension (GMP).

If you are above State Pension Age (currently 65 for men and 60 for women) part of your pension may be made up of GMP. This is an amount broadly equivalent to what you would have earned in the State Scheme, in addition to the Basic State Pension, had you not been a member of the Kingfisher Pension Scheme.

If part of your pension is in respect of GMP, then some or all of the increase due on that element will be paid by the State with your Basic State Pension.

If you have been retired for less than 12 months April 1^st, your pension will be increased by a proportionate amount, for example, if you have been retired for six months by April 1^st, then you will receive half of the increase.

We will write to you to confirm the amount of the increase on, or just before, your payment on April 6^th.