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Do I have to pay tax on my pension? |
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You may have to pay tax on your pension it depends on the total amount of income you receive and what tax code HM Revenue and Customs (HMRC formerly the Inland Revenue) tell the Scheme to use for you.
If you have any questions about how your tax code has been calculated, or about the amount of tax you pay, you should contact HMRC their details can be found on the links page of this website. |
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How often will my pension be paid? |
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BCSSS pensions are paid on a monthly basis, on the last working day of each month. A list of future paydays is provided on the pack page of the Winter edition of pensions news, alternatively they can be found on the news page of this website. |
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I am not receiving my pension, can I find out how much my benefits are worth?
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Yes, you should already receive an annual deferred benefit statement and whilst the administration office will not be able to give you detailed information over the telephone, they will be able to provide you with a further estimate of your benefits in writing. |
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Can I make sure my close family members receive any lump sum death benefit payable if I die?
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Yes, you can make a nomination under Rule 28A of the Scheme. A nomination form can be found on the requests and forms section of this website. The Scheme’s trustees will take this information into account when determining to whom any benefits will be payable on your death. |
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Can I transfer my other pension scheme benefits into the BCSSS?
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Unfortunately no, the BCSSS is a closed scheme, which means that it cannot accept any new entrants, or ‘new money’ into the Scheme. The Scheme can accept reinstatements, but these are not ‘transfers’, but payments that are made to put people back into the Scheme as if they had never left. |
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Can I pay contributions into the BCSSS to increase my pension?
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Unfortunately no, the BCSSS is a closed scheme, which means that it cannot accept any new entrants, or new money' into the Scheme. |
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Can I transfer my pension out of the Scheme? |
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Yes, if you are not yet in receipt of your pension you can transfer your pension to any new employer’s scheme you may join (provided they can accept it) or any other HM Revenue and Customs (formerly the Inland Revenue) approved arrangement. You should think very carefully and take financial advice before you transfer your benefits out of the Scheme. |
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Can I take my benefits before I am 60 years old? |
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Yes, if your full Scheme benefits are payable from age 60, you can take your benefits at any time from age 50 (with the exception of any benefits re-instated into the Scheme after 6 April 2006). If you do choose to take your benefits before age 60, they will be reduced – this is to take account of the fact that they are being paid early and also because your pension will be paid for longer than it would have been had you taken your benefits at age 60.
If you were made redundant by British Coal you may have an entitlement to unreduced pension payable from your 50th birthday. Your annual benefit statement will tell you when your benefits are payable.
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I don't want to take my pension at age 50, can I leave it in the Scheme until a later date?
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Yes, if you have an entitlement to unreduced pension at 50 you have the option of ‘further deferring’ – this means leaving your benefits in the Scheme. Further deferred benefits will be increased during the period of deferment. Currently the rate of increase is 0.5% for each month that benefits are further deferred. |
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What happens to my pension if I get divorced? |
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If you get divorced your pension will be taken into account along with your other assets when working out a financial settlement. There are three outcomes:
1 you keep your pension in full and your ex spouse receives other assets; or
2 your ex spouse can be awarded a proportion of your pension through an earmarking order. Your ex spouse’s proportion will only be paid when you choose to take your benefits; or
3 your ex spouse can be awarded a proportion of your pension through a pension sharing order. Your ex spouse would be able to retain their share, known as a pension credit, within the Scheme or alternatively transfer their proportion to an approved pension scheme of their choice.
Further information about divorce and the Scheme can be obtained from the Scheme’s divorce fact sheet on the Scheme Publications section of the website.
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