NEWS

This page is reserved for recent developments in the pension’s area generally.  It will not necessarily cover PSS-only issues.

TAX ON INTEREST

If you received a GMP arrears payment in the tax year to 5 April 2024, it included interest income.

The interest element was not taxable at source (i.e. the Scheme was not to deduct tax).

If the total interest income you received, including from other sources, was higher than your interest income allowance in the tax year 2023/24, you are responsible for reporting this to HMRC and paying any resulting tax due.

Income Tax band              Personal Savings Allowance

Basic rate                            £1,000

Higher rate                        £500

Additional rate                     £0

During May we will send letters to members where the interest on the arrears is more than £250.

If you have interest income from other sources that is close to, or exceeds the annual allowance, but you have not received a letter, you may contact the administrators to confirm the level of interest on your arrears payment. Please remember that if you have not received a letter, the interest is less than £250.

UNCONVERTED MEMBERS

We were not able to convert all members at the time of the original conversion due to specific aspects of individual benefits.  We continue to work with our providers towards completing this exercise for all members.  Any change will reflect your benefits at the date of the calculation and you will receive interest up to the date of payment on any arrears that may be due.  Please remember that most changes are small and the current amount and expected value over the lifetime of the benefits will not be reduced.