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Riverside Group Pension Scheme Report to Members 2019

December 2019 Details correct at time of printing

If you have any questions about your individual benefit entitlement, please contact the Scheme Administrator:

By post: First Actuarial LLP, Trafford House, Chester Road, Manchester, M32 0RS

(please state that your enquiry is about the Riverside Group Pension Scheme)

By phone: 0161 348 7498

By email: [email protected]

If you have a more general question about Riverside’s pension arrangements, you can contact the People Services team:

By post: Riverside Group Limited, 2 Estuary Boulevard, Estuary Commerce Park, Liverpool, L24 8RF

By phone: 0151 295 6160

By email: [email protected]

Contacts and enquiries

The Riverside Group Limited Registered office: 2 Estuary Boulevard, Estuary Commerce Park, Liverpool L24 8RF

A charitable Registered Society under the Co-operative and Community Benefit Societies Act 2014

www.riverside.org.uk

1881_RSG_Pension_Newsletter_2019.indd 1-2 13/12/2019 12:08

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General pensions news2019 has seen a continuation of the political and economic uncertainty created by Brexit. Although the Trustees continue to monitor the potential impact of Brexit on RGPS, we agree with The Pensions Regulator’s statement in January 2019 that the UK’s departure from the EU is not expected to have a significant impact on trustees’ ability to administer their scheme effectively. However, the Riverside Trustees continue to monitor, along with their advisers, the potential impact of market uncertainties on the Scheme’s investments.

One casualty of the ongoing Brexit paralysis is that the Pensions Bill is unlikely to survive the General Election. This Bill was intended to introduce a number of important changes, including the requirement for schemes such as RGPS to adopt a long-term funding target and to publish details of this in a statement of funding and investment strategy. The Bill also introduced new powers for The Pensions Regulator to help it mitigate the impact of high-profile corporate failures, such as BHS and Carillion. We do not expect these issues will go away, but may of course emerge after the Election in a different form.

Chair’s introduction

Welcome to the 2019 Riverside Group Pension Scheme (RGPS) newsletter. In this newsletter, we explain the important pension developments that have taken place over the last 12 months and inform you of the progress and current position of the Riverside Group Pension Scheme.

Chair’s introduction 3

The Trustee Board 6

Professional advisers 9

Summary Funding Statement 10

Investment update 12

Amounts from accounts 15

The Social Housing Pension Scheme 16

Points of interest 17

Thinking of transferring your benefits? 20

Planning for retirement 21

Reminders 23

Contacts and enquiries 24


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The issue of financial scams in general, and pension scams in particular, has also continued to feature regularly in the news. As RGPS is a defined benefit scheme, the main tactic that scammers might adopt is to offer you a transfer to a bogus scheme. You should be extremely wary of anyone who approaches you about transferring your RGPS pension to another arrangement. Although the Trustees do not wish to frustrate genuine transfers, you can expect that RGPS will carry out checks before making a payment to ensure that you understand the transfer, you know where it is being paid to and have considered your options carefully.

In the light of the risk of scams, it is very helpful that you know who is communicating with you about your pension. For this reason, we introduce in this newsletter the RGPS’s new pensions advisers, First Actuarial. Although you will no doubt receive communications from First Actuarial about RGPS, and may even speak to them if you have an enquiry about your pension, they cannot provide you with individual financial advice.

Scheme fundingIn our 2018 newsletter last year, we explained that the latest triennial valuation of the Scheme as at 31 March 2017 had been signed off. In the years when an actuarial valuation is not carried out, the Trustees obtain an annual update from the Scheme Actuary. The purpose of the annual update is to give an approximate indication as to how the Scheme’s funding position has changed since the previous update. The Trustees have prepared a Summary Funding Statement, containing the outcome of the annual update as at 31 March 2019, which is included in this newsletter.

The Trustees consider these funding updates carefully, and also monitor the financial performance of Riverside Group Limited (‘the Employer’), as the Scheme relies on ongoing financial support from the Employer. This will enable the Trustees to take prompt action in order to protect the Scheme’s interests should this be necessary in future.

Member communication and new RGPS website It’s important to us that you are kept informed about the Scheme and how it is being run. During 2019, you will therefore have been notified about our change of advisers and have been given new contact details in case you have an enquiry about your pension.

In addition to the annual newsletter, we have also launched a new RGPS member website at www.riversidepensions.co.uk. The new website will allow you to see your personal details, as well as to access various Scheme documents and to read about current pensions news.

Chair’s Introduction continued


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Due to Janet Richardson’s resignation as a Trustee earlier this year, at the time of writing there is a vacancy for a member-nominated director on the Trustee board. We have therefore written to eligible members seeking nominations for this role, and hope to have a replacement Trustee in place early in 2020. We are grateful to Janet for her period of service as a Trustee.

Although Andy Gladwin had not been a Trustee since he resigned that position in May 2018, he continued to serve the board as Scheme Secretary until September 2019. Andy was a driving force behind the Scheme, and did a sterling job during 2019 in managing the review of our advisers and the transition of services to First Actuarial. We all send our thanks and best wishes to Andy.

I’m sorry to announce that, after nearly 11 years as a Trustee director of RGPS, I am standing down from that role at the end of this year. However, my firm, Capital Cranfield Pension Trustees Limited, will continue as Chair of the Trustee board and I’m delighted to welcome my colleague, William Medlicott, to replace me. Some brief details about William are included in the Trustee Board section of the newsletter below. It has been a pleasure to serve on the Trustee board for such a long period of time, and I wish them well for the future.

We hope you find this letter informative. If you have any comments about it, please contact either the Scheme Administrator or the People Services team at Riverside Group.

Steve Carlisle Chair of Riverside Group Pension Trustees Limited

Maxine Cousens: Maxine is Director of People and Culture at Riverside, and joined the Trustee board on 10 May 2018.

Simon Edwards: Simon is a Fund Manager for West Yorkshire Pension Fund, and joined the RGPS Trustee board on 1 April 2018. Simon is a member of the Chartered Financial Analyst (CFA) Institute and an associate member of the UK Society of Investment Professionals (UKSIP).

Carol Matthews: Carol has been appointed as a Trustee by Riverside, and joined the Board in February 2012. Carol is Riverside’s Group Chief Executive.

Current Trustees Here is some information on the current Trustees and a bit about their backgrounds.

William Medlicott: William has just taken over from Steve Carlisle as the representative of Capital Cranfield Pension Trustees Limited (CCPTL). CCPTL is the Chair of the RGPS Trustee board, and was first appointed by Riverside as an independent trustee in April 2005. William is a chartered accountant with a long career in senior financial roles, including as former Finance Director of ITV Broadcasting and Online. He has acted as a pension scheme trustee since 2005, and has particular experience in investment matters.

Dave Bullock: Dave has been a member-nominated Trustee director since July 2016, when he was appointed for a six-year term. Dave is the Managing Director of Compendium Living, the joint venture established by Riverside and Lovell.

The Trustee BoardChair’s Introduction continued


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Management of the Riverside SchemeThe management of RGPS is the responsibility of the directors of the Trustee, Riverside Group Pension Trustees Limited (we refer to these directors as ‘the Trustee’ or ‘the Trustees’). The Trustees have a duty to act in the best interests of members and to ensure that the Scheme is run in accordance with legal requirements and its governing documents. The Trustees are supported in the day-to-day operation of the Scheme by a number of external professional advisors:

First Actuarial LLP – First Actuarial are the Scheme’s advisers on actuarial, investment and general pensions matters. First Actuarial have also been appointed as administrators to the Scheme, which means they hold records of each member’s benefits in the Scheme. They calculate members’ pensions when they leave or retire, pay pensions to retired members each month and issue benefit statements to members when required. From 2020, First Actuarial will also prepare the Scheme’s annual accounts.

CMS – a professional law firm that provides legal advice to the Trustee as required.

KPMG – a firm of chartered accountants that audits the Scheme’s annual accounts.

Investment managers – the Trustee engages a number of external professional fund managers to manage the day-to-day investment of the Scheme’s assets on their behalf. The Trustee takes advice from its investment adviser, First Actuarial, before deciding which investment managers to employ and agreeing their mandates.

Appointment of the TrusteesThe full Trustee board comprises six Trustee directors, four of whom are appointed by Riverside, including the independent trustee who acts as Chair. The remaining two Trustee directors are selected by Scheme members through a nomination process. There is no difference in the role or responsibilities of the Trustees appointed by Riverside and those nominated by Scheme members.

A few words of thanks to Steve CarlisleIt is time to say goodbye to Steve, who has been an outstanding Chair of the RGPS Trustee. Steve has contributed to the health of our scheme and has led significant work on the tender of services, review of investment managers and the appropriate strategy to put in place after each triennial valuation. We particularly commend Steve for navigating us through reducing the risk in the Scheme by building up the liability hedge through the Scheme’s LDI portfolio. He has been a thoughtful and collegiate Chair, ensuring that all are involved in discussions and decisions. We have been so well-served by Steve and wish him well.

Thank you for a superb job done.

The Trustee Board continued

Gary Potts is the lead administrator for RGPS, and has regular day-to-day contact with Scheme members. He is a senior pensions and payroll administrator, with over 10 years’ experience, mostly with First Actuarial. Gary has a strong focus on quality and an approachable personality, which makes him ideal for dealing effectively with member enquiries.

Andrew Overend is the joint head of First Actuarial’s investment team, and the lead investment adviser to RGPS. He originally qualified as an actuary, but now has many years’ experience specialising in investment work. Andrew has particular expertise in liability-driven investment strategies, an approach already implemented by RGPS.

We are pleased to announce that, following a thorough tender process carried out by the Trustees, First Actuarial has been appointed as the RGPS’s new pension advisers and administrators. First Actuarial is a leading pension adviser in the social housing sector, with a reputation for high-quality and personalised service to scheme members.

Some brief details of the key members of the First Actuarial team advising the Scheme are shown below. They are supported by a larger team based in Manchester and Leeds.

Sam Mullock is the Scheme Actuary to RGPS, and manages First Actuarial’s relationship with RGPS. He is a partner of the firm and a senior actuary with nearly 20 years’ pensions experience. Sam is a recognised expert on pensions in the social housing sector, and regularly features in publications on this topic. Sam joined First Actuarial early in 2017 after moving back to Manchester from London. In his spare time, Sam is a board member of a community benefit society.

Ian Banks has been appointed as Scheme Secretary to RGPS. Ian is an experienced actuary and pension consultant, having advised pension scheme trustees for over 30 years. As well as taking responsibility for the organisation of Trustee meetings, Ian prepares the Trustee’s business plan and helps to ensure that good governance standards are maintained.

Professional advisers – welcome to First Actuarial!


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Since the previous Statement (for the period ending 31 March 2018), the shortfall in the Scheme has increased slightly. The main reasons for this are:

• a fall in long-term interest rates; and

• an increase in future expectations for inflation.

These two factors have resulted in a higher value being placed on the liabilities (ie the target level of assets that is expected to be enough to pay all future benefits).

The Trustee and its advisers will continue to monitor the position. The next formal actuarial valuation of the Scheme is due as at 31 March 2020, with the results of that valuation known by 30 June 2021.

What if the Scheme has to wind-up?

Riverside and the Trustees do not intend to wind up the Scheme. However, as part of the actuarial valuation, the law also requires an assessment to be made of the extent to which the assets would cover the liabilities of the Scheme if the Scheme were to start to wind up. The last valuation, as at 31 March 2017, showed that the Scheme’s assets represented approximately 51% of the cost of securing the Scheme’s benefits with an insurer.

If the Scheme were to wind up, the law requires the Employer to make a payment to the Scheme that would enable us to secure 100% of members’ benefits with an insurance company. At 31 March 2017, the estimated amount required to achieve this was £154.1m. This is larger than the shortfall shown in the table above, but this is very common amongst similar UK pension schemes.

If the Employer became insolvent, the Pension Protection Fund (PPF) might be able to pay compensation to members. For details of the compensation payable by the PPF, please refer to the PPF website at https://www.ppf.co.uk.

Is there anything else I need to know? Regulations require us to confirm to you that the Employer has not taken any money out of the Scheme in the last 12 months. Legislation would only permit a payment to the Employer once the Scheme had enough assets to secure the accrued benefits with an insurance company. We can confirm no such payment has occurred.

Regulations also require us to confirm to you that the Pensions Regulator has not intervened to modify the Scheme’s Rules or impose a Schedule of Contributions in the last 12 months. We can confirm no such intervention has occurred.

Further informationThe following documents are available on request:

• The Statement of Funding Principles

• The Statement of Investment Principles

• The Recovery Plan and Schedule of Contributions

• The Trustees’ Annual Report and Accounts

• The full Actuarial Valuation as at 31 March 2017

• The shorter Actuarial Report as at 31 March 2018 and 31 March 2019

• The Scheme booklet

The main purpose of this statement is to update you on the financial development of the Scheme.

How the Scheme operatesThe Scheme pays retirement pensions and lump sums and, following a member’s death, may pay benefits to dependants. The money to provide these benefits comes from contributions paid to the Scheme by the Riverside Group Limited (“the Employer”) and by active members while they were building up benefits. These contributions are then invested by the Trustees and held in a common fund, completely separate from the assets of the Employer, from which the benefits are paid.

As of 31 March 2016, the Scheme closed to future accrual, so members no longer contribute to the Scheme.

How much money does the Scheme need?Estimates are carried out by the Scheme Actuary on a regular basis. Using this information, we can agree with the Employer the level of future contributions. This statement gives you a snapshot of the Scheme as at 31 March 2019.

Actuary’s report The last actuarial valuation of the Scheme was carried out as at 31 March 2017. A funding update was carried out as at 31 March 2018 and 31 March 2019. When viewed as a continuing scheme, the funding position was:

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Summary Funding Statement for the period ending 31 March 2019

To eliminate this shortfall in the Scheme’s assets, the Employer paid a single contribution of £3m in April 2018 and has agreed to pay additional contributions of £1m p.a. in equal monthly instalments to the Scheme from 1 April 2021 to 31 May 2023.

The latest actuarial report showed that on 31 March 2019 the funding level of the Scheme was estimated to be 92% with a shortfall of £14.7m.

£m 31 Mar 2019 31 Mar 2018 31 Mar 2017

Value of assets 164.9 159.4 158.4

Value of liabilities 179.6 173.4 172.6

Shortfall (14.7) (14.0) (14.2)

Funding level 92% 92% 92%


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Investment Update

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The Trustees set a long- term investment strategy for the Scheme, after consulting Riverside and taking advice from its investment advisers. The Trustees’ investment strategy is described in the Scheme’s Statement of Investment Principles. The Trustees aim to invest the Scheme’s assets so as to generate an appropriate level of investment return over the long-term, while limiting the scope for adverse performance in the short-term.

To achieve this aim, the Trustees invest in a combination of growth assets and matching assets. Growth assets are those that are expected to perform well over the longer-term, but may involve a higher risk in the short-term, for example because they are exposed to stock market movements. Matching assets are those that are expected to go up and down in value in line with the Scheme’s liabilities. This therefore protects the funding position of the Scheme, because the value of the matching

assets and the value of the liabilities move in the same way. Matching assets are generally expected to produce lower returns than growth assets over the long-term, but to reduce risk over the short-term.

At present, broadly 70% of the fund is invested in growth assets, 24% in matching assets and the balance in cash. The split of funds as at 30 September 2019 is shown in the table and charts below:

• The matching assets are held with Schroder in a Liability Driven Investment (LDI) portfolio and an Aviva annuity policy. Whilst only 15% of the overall assets by value, the LDI portfolio provides much greater protection to the Scheme against changes in interest rates and inflationary expectations. It achieves this by a mechanism known as gearing, which reduces Scheme risks. The allocation of the matching assets is shown in the pie chart below.

• The growth assets are held in widely-diversified portfolios with Schroder, LGIM, Aberdeen, M&G and Partners in multi-asset, private market, active and passive equities. The allocation of the growth assets is shown in the table below.

The above figures are as at 30 September 2019, whereas the asset value in the accounts (shown in the ‘Amounts from accounts’ section of this newsletter) is at 31 March 2019.

* The latest valuation of the Aviva buy-in policy is as at 31 March 2019

Schroder ILG 2018-20272.4%





Arriva Buy-in Policy9.0%

Breakdown of matching assets Breakdown of growth assets

LGIMEurope 7.7%

LGIM Global

Emerging Markets 3.6%

LGIMNorth America 7.4%

LGIMJapan 1.9%

LGIM UK 11.5%

M&G EpisodeIncome Fund 9.4%

Partners Fund 8.3%

Schroder Life 10.8%

Fund as at 30 September 2019 Value (£m) Allocation %

Growth Assets:

Aberdeen Diversified Income Fund 11.970 6.6%

LGIM Asia Pacific (ex Japan) Developed Equity Index Fund - GBP Hedged 5.300 2.9%

LGIM Europe (ex UK) Equity Index - GBP Hedged 14.039 7.7%

LGIM Global Emerging Markets Index Fund 6.548 3.6%

LGIM Japan Equity Index - GBP Hedged 3.437 1.9%

LGIM North America Equity Index - GBP Hedged 13.412 7.4%

LGIM UK Equity Index Fund 21.042 11.5%

M&G Episode Income Fund 17.061 9.4%

Partners Fund (Guernsey) 15.065 8.3%

Schroder Life Diversified Growth Fund (Lower Fee) 19.765 10.8%

Growth Assets Total 127.639 70.1%

Cash:

LGIM Cash Fund 1.525 0.8%

Schroder Cash 0.452 0.3%

Schroder Sterling Liquidity Plus Fund 8.805 4.8%

Cash Total 10.782 5.9%

Matching Assets:

Schroder ILG 2018-2027 4.399 2.4%

Schroder ILG 2028-2037 5.392 3.0%

Schroder ILG 2038-2047 7.236 4.0%

Schroder ILG 2048-2057 6.873 3.8%

Schroder ILG 2058-2077 3.362 1.8%

Aviva Buy-in Policy* 16.3 9.0%

Matching Assets total 43.562 24.0%

Total 181.983 100.0%


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The Trustees prepare an audited Trustee’s Report and Accounts (TR&A) each year, which provide a detailed analysis of the Scheme’s income and expenditure, the value of its assets and any other financial transactions that have taken place during the year. This table provides a summary from the TR&A for the year ending 31 March 2019, which has been audited by KPMG LLP:

It is worth noting that some of the assets are valued differently for the purposes of the accounts and for the purpose of the actuary’s advice on the Scheme’s funding position (see the ‘Actuary’s report’ included in the Summary Funding Statement earlier in this newsletter). This is for technical reasons and has no impact on the Scheme’s financial position

14

Investment performanceThe Trustees review the performance of each of the funds in which the Scheme invests on a quarterly basis, taking account of the way markets as a whole have moved and the investment manager’s mandate. The investment mandate specifies the manager’s objectives for the fund, and any restrictions on assets that may be held. For example, in passive investment funds, the manager is obliged to invest so as to match closely the performance of a stated index. The Trustees currently invest around 55% of the Scheme’s growth assets in such passive funds.

The balance of the growth assets are invested in a range of actively-managed funds, where the manager has greater freedom to invest in order to exceed the benchmark return set for the fund. Close monitoring of the manager’s performance is more important for such funds, although the Trustees recognise that active managers are unlikely to perform well all of the time. Performance therefore needs to be considered over the longer term. It is also the Trustees’ belief that long-term investment performance is attributable more to asset allocation, that is, decisions about which asset classes to invest in, than to the choice of investment manager. The Trustees therefore regularly monitor and review the Scheme’s asset allocation with their investment advisers.

StewardshipEnvironmental, social and governance (ESG) issues, and in particular climate change, are becoming increasingly important for pension scheme trustees and fund managers. In September 2019, the Trustees adopted new policies on ESG matters, which are now set out in the Scheme’s Statement of Investment Principles.

The Trustees believe that ESG factors may have a material impact on investment risks and future returns. However, because the Scheme invests in pooled funds (which are open to many different investors), it is primarily the manager’s responsibility to exercise the stewardship function, for example by engaging where necessary with companies to improve their environmental policies. This is particularly true in passive funds, where the manager is obliged to invest in shares that comprise the relevant index. However, the Trustees will consider each manager’s approach and performance on ESG matters when deciding which funds and managers it is appropriate for the Scheme to invest in.

In the longer term, the Trustees will consider whether to invest in funds that have positive ESG characteristics, provided that such investment is in the Scheme’s best financial interests.

Investment Update continued

Income and expenditure Year to 31 March 2019

Income:

Member contributions -Employer contributions £3,000,000

Investment income £982,256

Total Income £3,982,256

Expenditure:

Pension and lump sum benefits £3,397,960

Transfer values paid to other schemes £2,826,821

Administration expenses paid by the Scheme £18

Total expenditure £6,224,799

Summary position:

Value of assets at 31 March 2018 £160,128,095

Add income £3,982,256

Subtract expenditure (£6,224,799)

Add/(subtract) change in the value of investments £9,395,394

Value of assets at 31 March 2019 £167,280,946

Amounts from accounts


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You may have seen in the press that Riverside has moved its pension promises (and the assets funding these promises) from SHPS to a new pension scheme called The Riverside (ex SHPS) DB Scheme. To confirm, this transfer has no impact for members of the RGPS. The assets and liabilities of the Riverside (ex SHPS) DB Scheme are held in a separate scheme to the RGPS and are administered by TPT Retirement Solutions (rather than First Actuarial).

New RGPS Member Website – please take a look!Our new advisers, First Actuarial, have set up a website for RGPS members that allows you to access Scheme documents (booklets, newsletters etc), FAQs, key forms to download and a summary of contact details to find out how to get in touch should you need to.

The website also provides instructions as to how you can log in and see your member details. Additional functionality may be added later, but please do take a look here:

www.riversidepensions.co.uk

Guaranteed Minimum Pensions (GMPs) If you earned benefits in the Scheme before 6 April 1997, it is very likely that part of your pension entitlement will include a right to a Guaranteed Minimum Pension (GMP). The GMP is the minimum pension that the Scheme is required to provide you with because the Scheme was contracted-out of the State Additional Pension (this used to be call SERPS or State Second Pension). Your GMP forms part of your overall pension from the Scheme, but it is subject to different legal rules which affect how it must be increased before and after you retire.

Contracting-out was abolished by the Government in 2016, and since then, all previously contracted-out pension schemes have been reconciling their GMP records with those held by Her Majesty’s Revenue and Customs (HMRC). In some cases, where discrepancies have arisen,

this may mean that members’ GMPs will need to be changed, resulting in minor differences to their pensions. You will, of course, be notified if this affects you, but any such adjustments will generally be small.

Additionally, following a ruling by the High Court in October 2018 concerning Lloyds Banking Group’s pension scheme, it has now been clarified that pension scheme benefits that accrued on or after 17 May 1990 should be equal for men and women, including where differences arise due to GMPs. Under legal requirements at the time, GMPs were calculated differently for men and women and payable from different ages. The Lloyds ruling now means that benefits must be adjusted in order to remove such differences. There is still some uncertainty as to how these adjustments should be carried out, and in the meantime, it is likely that most schemes will defer implementing GMP equalisation for several months. Again, you will be notified if there is to be any change to your pension entitlement once GMP equalisation has been completed within RGPS. It is expected that any adjustments will be small, but no member’s pension will reduce as a result of GMP equalisation.

The Social Housing Pension Scheme (SHPS)

Points of interest

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Membership profileAt 31 March 2019, the Scheme had 1,340 members. This table shows the number of deferred and pensioner members, and movements over the year:

Deferred Members

Pensioner Members

Total Members

As at 1 April 2018 967 396 1,363

Retirements (24) 24 -

Deaths - (10) (10)

New spouses’ pensions - 4 4

Leavers – pension commuted (3) (1) (4)

Transfers out (13) - (13)

As at 31 March 2019 927 413 1,340


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Limits to pension savings: the Annual Allowance and the Lifetime Allowance The pension savings you can make tax-free over your lifetime are limited to the lifetime allowance (LTA). For the current tax year, 2019/20, the LTA is £1,050,000. If your pension savings are worth more than this when you take your benefits, you’ll have to pay the LTA tax charge unless you have some form of LTA protection. For the purpose of the LTA, your RGPS pension will be valued as 20 times the annual amount of your pension.

The pension savings you can make tax-free in any tax year are also limited to the Annual Allowance (AA). The standard AA is £40,000, but may be lower if you have taxable earnings in the year above £110,000. If you have accessed any pension benefits flexibly, then your AA reduces to £4,000. It is worth noting that your RGPS benefits cannot be accessed ‘flexibly’ unless you transfer them to another pension arrangement.

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Check your State pensionFrom April 2016, the government introduced a new State pension, replacing the previous basic State pension and State additional pension. If you reached State pension age before April 2016, you were not affected by this change. If you reach State pension age after April 2016, then the State pension you had already earned up to that date will count towards the new State pension. You will also earn 1/35th of the additional new State pension for each further year you pay National Insurance contributions, until you have reached the full entitlement of £168.60 per week (for 2019/20).

It’s important to know that, as a member of the RGPS, you were contracted-out of the State additional pension. When working out the State pension you had earned up to April 2016, the government makes a deduction to reflect the fact that you were contracted-out for this period, and had therefore paid lower National Insurance contributions.

State pension age is also set to rise, depending on your date of birth. If you were born after 5 April 1978, your State pension age is currently 68. If you were born after 5 March 1961 but before 6 April 1978, your State pension age is 67. To find out your State pension age and to obtain an estimate of your new State pension, go to https://www.gov.uk/check-state-pension

Keeping your data safe and up to dateAs Trustees, we hold certain personal details about you to enable us to run the fund and to make sure you are paid the

correct benefits at the right time. From 25 May 2018, the General Data Protection Regulation (GDPR), now incorporated into the UK Data Protection Act 2018, came into effect to ensure that your data is protected and only used for the purpose it was intended.

The Trustees continue to review the Scheme’s policies and practices to ensure compliance with the legislation and best practice, so you can be satisfied that your data is well protected. In June 2019, our data privacy notice was updated to reflect the change in our advisers to First Actuarial, and this was re-circulated to all members. The notice explains how the Trustees process your data and who has access to it. If you have any questions about the way your data is processed, please contact the Scheme Administrator at First Actuarial.

Maintaining high quality data about members of the Scheme is one of the Trustees’ highest priorities, and is vital to ensuring that the correct benefits are paid at the right time. Unfortunately, things change over time and therefore data quality requires continual review. Following the appointment of First Actuarial as our advisers, a data quality action plan has been prepared to rectify the few areas in which the Scheme’s data is either incomplete or out of date. This plan will be implemented during the next few months. Most of the actions will not involve direct contact with members, but tracing exercises may need to be carried out where we received returned mail and it is evident that members’ addresses have changed.

Points of interest continued

Helpful websites about pensionsThe following websites provide useful information and are recognised independent sources:

There are numerous others, but you’ll need to be cautious. Use online sites for background information, but you should seek independent financial advice before making key decisions about pensions, such as whether or not to transfer your pension to another arrangement.

Pension Wise www.pensionwise.gov.uk

Money Advice Service www.moneyadviceservice.co.uk

Citizens Advice Bureau www.citizensadvice.org.uk/debt-and-money/pensions

The Pensions Advisory Service www.pensionsadvisoryservice.org.uk

Age UK www.ageuk.org.uk


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Are you saving enough to be able to stop work one day? That is what retirement savings are for! But understanding your pension savings can be daunting. It is never too early to start, and the sooner you begin the easier it will be. Follow these simple steps to help feel more in control about your retirement planning.

Step 1: Know what you need when you retireIt’s hard to know whether you’re on track if you don’t know what you’re aiming for. The first step is therefore to estimate the target retirement income you need.

There are lots of ways to do this. Perhaps the simplest is to start with your current earnings, deduct anything you won’t need when you stop work (e.g. travel costs, money for pension savings!), and add in any extras (e.g. daytime home energy costs, hobbies and leisure activities). We recommend doing this for your household for the best overall picture.

Step 2: What pensions do you have, and what are you building up?Once you know what you’re aiming for, it’s time to check how your pension savings compare. You may well have pension savings in a few places, so start by tracking each of them down to find out what income and/or lump sums they may provide you with, and when.

State Pension: you build this up by paying national insurance contributions (NICs). You need at least 10 years’ worth of NICs to build up any entitlement, and 35 years of paying full rate NICs to get the maximum. See the section above ‘Check your state pension’ to find out how to get a forecast of your state pension entitlement.

Workplace pensions: contact the scheme’s administrator and ask them for an updated benefit statement. If you do not have a recent statement from the RGPS, you can contact the Scheme Administrator using the details at the end of this newsletter.

If you have lost track of any pension savings, use the official tracing service here: https://www.gov.uk/find-pension-contact-details

Remember to include any other non-pension savings that you’ve set aside for retirement too (for example cash savings, investments, ISAs).

If there is a gap, think about what you can do – can you save a bit more? Can you cut down what you might need in retirement and reduce your target? Taking steps now could help to bring you back on track to reach your target.

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There is still a lot of concern about the level of scam activity in relation to pensions. Generally, the scams start by persuading you to transfer your fund to another pension arrangement, sometimes with the prospect that all or part of your fund can be released to you as cash. Remember that, if you are under 55, it’s illegal for you to access your fund unless you are retiring due to ill-health.

Some of the tell-tale signs of pension scams are:

• An offer of a free pension review

• The promise of guaranteed returns on your investment

• Low tax/tax-free rates, including tax-free lump sums

• Exotic sounding and/or overseas investments

• Pressure to sign up quickly to avoid missing out.

From 1 January 2019, the Government has introduced a ban on ‘cold calling’ in relation to pensions. If you receive a call about pensions from someone you haven’t asked to call you, and with whom you have no existing relationship, then it is likely that the caller is acting illegally. You would be strongly advised to take the caller’s name and then end the call immediately.

If you are over age 55 and you have not yet taken any benefits from the Scheme, you have the right to transfer your benefits to another approved pension arrangement. There are legitimate reasons why you might want to do so, for example, if you wish to draw your benefits flexibly. However, if the value of your benefits is more than £30,000, we are required to check that you have obtained advice from an independent financial adviser who is authorised by the Financial Conduct Authority to advise on pension transfers.

In all cases, you should think very carefully about the guaranteed benefits you will be giving up if you choose to transfer. You should also ensure that you are familiar with the pension arrangement to which the transfer payment is to be made and that you understand why you wish the transfer to proceed.

Thinking of transferring your benefits? Beware of scams!

Planning for retirement


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Step 3: Know where to go for helpMake the most of free help that is available. The Money Advice Service has lots of help on its website, which covers more than just retirement planning.

Pension Wise is another free service for over 50s if you have defined contribution (DC) savings in other pension arrangements. Pension Wise provides independent guidance online, by phone and face to face. Links to the websites for both The Money Advice Service and Pension Wise are included in this newsletter, along with several other useful websites.

You might feel that guidance isn’t enough, and you’d like to seek some independent financial advice. Make sure you find an adviser who is a qualified pension specialist. Your adviser should help you to understand your pension options and recommend the ones which are best suited to you.

Avoid the scammers! Make sure you know who you’re dealing with. As a rule of thumb, ignore cold callers offering “free pensions reviews”, or time-pressured offers. Remember, if it sounds too good to be true, it probably is!

Expression of Wish FormThank you to those members who have already sent in their Expression of Wish Form. If your personal circumstances have changed, please remember to consider whether this affects who you would like to receive any lump sum death benefit from the RGPS. The Trustees have discretion as to whom any lump sum should be paid, but they will normally respect your wishes. If you have any doubts, please complete a new Expression of Wish Form.

You can download a new form from the RGPS member website www.riversidepensions.co.uk or by contacting the Scheme Administrator.

It’s possible that you may be a member of one or more of Riverside’s other pension arrangements, or have benefits in those arrangements. Please note that it’s likely you will need a separate Expression of Wish form for each of those arrangements. Unfortunately, the form you submit for RGPS cannot be shared with other pension schemes.

Changing address?Please help us by telling the Scheme Administrator of any change of address, email or change of name. Failure to do so may delay setting up your pension when you reach retirement age.

Lost pensionsIf you have lost track of any pension savings built up elsewhere, there is a tracing service available.

https://www.gov.uk/find-pension-contact-details

Points of interest continued Reminders


by post: riverside group by phone: pension scheme report ... limited (ccptl). ccptl is the chair of...

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