PENSIONER INFORMATION

This is the part of the website specifically for our retired members, where you will find information about the payment of your pension, Pension Increases, Increases to Pensions in Payment.

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 advised otherwise. On retiring, you can contact your local tax office regarding this; it is advisable to do so as this generally speeds-up the issuing of your new Tax Code.

If you would like to contact your local tax office please visit their website at:http://www.hmrc.gov.uk

PENSION INCREASES

On 1 April each year, the Scheme guarantees to increase pensions in payment by the rise in the Retail Prices Index over a calendar year, subject to a limit of 5% per annum. If you are a member who joined the Scheme before 5 April 1997 part of your pension may be made up of Guaranteed Minimum Pension, and this part is broadly equivalent to what you would have received from the earnings-related part of 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 made up of Guaranteed Minimum Pension, then some or all of the increase due on that part will be paid (with effect from State Pension Age) by the State with your Basic State Pension. Increases to the Guaranteed Minimum Pension earned before 5 April 1988 will be paid (with effect from State Pension Age) by the State in line with legislation; increases to the Guaranteed Minimum Pension earned after 6 April 1988 and before 6 April 1997 will be made by the Scheme either at a rate of 3% per annum or by the Retail Price Index should this be lower than 3%.

If your pension has been in payment for less than one year, then the increase is proportionately calculated for each month the pension has actually been in payment. For example, if you have been retired for six months by 1 April, then you will receive half of the increase.

On 1 April 2006 (for UK pensioners), pensions in payment in excess of any Guaranteed Minimum Pension were increased by 2.2%. Over the past five years, the increases have been:

2006 - 2.2%
2005 - 3.5%
2004 - 2.8%
2003 ­ 2.9%
2002 ­ 0.7%

If you have any queries regarding your increase, please contact Pensions Administration on 020 7372 8008.

Increases to Pensions in Payment

From 1 April 2006 (for UK pensioners), pensions in payment in excess of any Guaranteed Minimum Pension (GMP) will be increased by 2.2%. This increase is granted in accordance with the Kingfisher Pension Scheme promise to increase pensions in payment by the increase in the Retail Price Index (RPI) over the calendar year, subject to a limit of 5% per annum.

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 at 1 April 2006, your pension will be increased by a proportionate amount, for example, if you have been retired for six months by 1 April 2006, then you will receive half of the increase.

If you have any queries regarding your pension, please contact Pensions Administration on 020 7372 8008.