News & Events

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Welcome to the Winter 2003 edition of atease. 

Avon Pensions Fund’s newsletter for pensioner members of the fund.

Firstly, can I remind you all once again that your pensions are not at risk because of the falls in the stock market. A number of pensioners have contacted the Avon Pension Fund to query this following press articles which have highlighted the deteriorating financial position of local authority pension funds. While employer contribution rates may need to increase – and this is something which will, of course, affect you as Council Taxpayers if the government does not make full allowance for it in the grant settlement – your pensions are safe. The anticipated increase in employer contribution rates will be effective from 1 April 2005. 

On the back page of this issue, you will find highlights from the Fund’s 2002/2003 accounts. Copies of the full Annual Report and Accounts will be available shortly in libraries throughout the former Avon area. 

We’re looking to get our readers more involved with atease, so please read how you could contribute to your newsletter. 

As winter closes in, we ask is your home winter proof? Give your home an autumn checkover and avoid those traumatic and costly emergency callouts. 

We have some tips from chiropodists on keeping your feet in good shape for longer and avoiding problem in the future. 

Are you paying too much tax? Millions of people are, read on to discover if you can make any savings. 

Finally, I’d like to welcome the new editor of atease, Martin Downes. Martin has taken over from Melanie Clark as Marketing and Communications Officer for the Avon Pension Fund. Please feel free to contact us on the usual freefone number 0800 0644155 or email Martin on Martin_Downes@bathnes.gov.uk. 

Jean Hinks
Resources Director
Bath & North East Somerset Council

Contents

We Need You!

Atease wants to hear from its readers! 
We are looking to involve our pensioner members far more in the content of their newsletter. 

We are looking for stories about retirement, what have you been up to since you stopped working? You may have an unusual hobby that could interest other readers. 

You may have travelled somewhere exciting lately, tell us about it! We’re interested in hearing about any holiday tales that you’d like to share. 

Have you lost contact with a former Avon colleague? We can help put you in contact with old friends, or let people know about any forthcoming reunions taking place. Just supply us with your name, address, former workplace and a few details about who you’d like to contact and we’ll do the rest. 

Feel free to write in about ANYTHING that you think may appeal to other readers, and I’ll do my best to include it. Every piece we feature will receive an exclusive Avon Pension Fund pen, so don’t be shy, let's hear from you! 

Please send all your articles to: Martin Downes, Marketing and Communications Officer, Avon Pension Fund, PO Box 9, Floor 3 South, Riverside, Temple Street, Keynsham BS31 1FX or email me at Martin_Downes@bathnes.gov.uk

Keep In Touch!

Please remember to keep in touch and let us know about any changes you think could affect your pension including… 

If you move house 
~ Simply ring us free on 0800 0644155 and we’ll change your records there and then. 

If your bank details change 
~ The bank or building society WON’T tell us, so make sure you do, either by dropping us a line or calling in person in our offices.

If you start work again 
~ You MUST tell us if you get any job in Local Government, even though in many cases it won’t affect your pension. 

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Pension Credit

If you apply by telephone, an adviser will ask you questions, so they can fill in the application form, which will then be sent to you to check and sign. You may also be asked to send some supporting evidence (for example, proof of earnings or savings) back with the form. The following details would be useful when you phone, but don’t put off phoning if you don’t have them to hand. 

• Your National Insurance (NI) number 
• Your partner’s, NI number. (if applicable) 
• Details about money coming in; and 
• Details about savings and investments. 

APPLICATIONS 

Is Your Home Winter Proof?

Give your home an autumn check-up and prepare for a cosy winter – as well as avoiding those traumatic and costly emergency callouts. 

First, the exterior 
Get someone with a ladder and a head for heights – a reliable handyman or builder – to do these jobs for you. 

Make good your gutters 
Scoop out the debris that has collected in the horizontal channels. If they sag in the middle they may need a supporting bracket fitted. Pour water down the vertical pipes to check there are no leaks. Shake the brackets that hold the pipes to the wall to check they are not loose. 

Roof test 
Inspect the roof from inside the loft, during the daytime. If you can see daylight between the slates then there has been slippage and you need a professional roofer to fix it. You can also ask a roofer to check the lead flashing that seals different parts of the roof together. 

Bricks and mortar 
If the mortar between the bricks is crumbling or shows signs of damp, then you need some repointing done. 

Make sure the perforated bricks (set in the base of your outside walls) are clear so that air can circulate freely beneath your floorboards, preventing damp. 

Indoors 
Simple measures can make a big difference to your comfort and your purse… 

Get your boiler checked now 
Call in a reliable plumber – make sure he is qualified to check boilers. That way your boiler won’t go bang on the coldest day of the year. 

A well dressed hot water tank… 
…is an economical one. An insulating jacket for hot water tanks only costs a few pounds and pays for itself within months. Fit one that’s at least three inches thick and you could save around £20 a year. 

Mind the gaps 
Stop draughts and heat escaping by filling gaps under skirting boards with newspaper, beading or mastic sealant. That’s another £10 off your bills each year! 

It’s curtains for draughts 
As the days get chillier, closing your curtains at dusk will stop heat escaping through windows and save you around £15 a year. 

Finally… 
It may be worth considering cavity wall insulation. Up to a third of the heat lost in your home is through the walls, so insulating them can be the most cost-effective way to save energy in the home – you could save £100 on your annual heating bills! What’s more, it's a simple and relatively inexpensive job.

Over 60? 
Have you applied for your winter fuel payment? It’s worth at least £200 per household. If you’ve claimed it before, receive another social security benefit, or are over 80 then you’ll receive it automatically. To find out more you can ring the winter fuel payment helpline – 08459 151515 – open from 8.30am to 4.30pm Monday to Friday, and calls are charged at local rates. 

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Love your Feet!

As you cram your feet back into your winter shoes for another eight months, spare a thought for these most neglected parts of our bodies. Here are some tips from chiropodists on keeping your feet in good shape for longer. 

Our feet are a triumph of delicate engineering to which we pay scant respect. The 26 bones in each foot do not fully set until we are around 18 years old, so the shoes we wear as children are vital to our future foot health. But as an adult you can still do enormous damage to your feet by wearing the wrong shoes. 

An American study found that nine out of ten women are wearing shoes that are too small. As you get older, your feet tend to spread, so it’s important to have them measured every few years. Foot problems often arise in the 40s, 50s and 60s after decades of ill-fitting shoes. 

Footspoilers 
 The higher the heel, the worse for your feet. 
 Slip-on shoes cause the foot to slide forward and cramp the toes. 
 Court shoes give no support to the foot, and are often too narrow for the toes. 

For everyday wear choose a lowheeled shoe - no higher than 4cm - with a rounded toe and fastenings such as laces, buckles or velcro. 

Your footcare routine 
It's never too early or too late to start caring for your feet. 
 Wash your feet every day in warm soapy water (don’t soak, though). 
 Dry them thoroughly, especially between the toes. 
 If you are prone to athletes foot dab between the toes with surgical spirit. 
 Don't wear the same shoes every day. 
 Avoid synthetic footwear, choose cotton socks and leather shoes to let feet breathe. 
 Make sure socks are clean and dry. 
 Avoid sharing towels or footwear. 
 Avoid walking barefoot in changing rooms. 
 If your skin is dry, apply moisturising cream all over the foot, except between the toes. 
 Trim your toe nails regularly, using proper nail clippers. Cut straight across, not too short, and not down at the corners as this can lead to ingrowing nails. 

Keeping hard skin at bay 
Use an emery board or pumice to gently rub away the hard skin, then use a rich moisturising cream, such as an aqueous cream or E45 to soften the skin. If hard skin is painful or is over a bony area or joint, don’t try to remove but consult a state registered chiropodist/podiatrist. 

These feet were made for walking 
Make sure you do at least 30 minutes brisk walking every day in order to keep the muscles and ligaments in your feet supple and flexible. 

Note: If you have diabetes, consult your State Registered Chiropodist for a full check - up and advice. Arthritis sufferers can benefit from chiropody care. State registered chiropodists work in the NHS and in private practice. 

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Millions of people are! Read on to find out if you are one of them, and what you can do to save hundreds or, in some cases, thousands of pounds a year. 

Non taxpayer? 
Are you sure? 
If you are a non-taxpayer you may unwittingly be paying tax on the interest you receive on your savings accounts – thus losing 20 per cent of the return on your investments. Make sure you receive your interest gross by filling in form R85. It can be obtained from any bank or building society and takes about two minutes to complete. If your children have savings accounts, check that they are also receiving interest gross. 

Are you getting your credits? 
According to the government, nine out of 10 families with children are eligible for tax credits. Some people without children also qualify if they are working but on low incomes or disabled. There are two types, Child Tax Credit and Working Tax Credit. To find out more visit www.taxcredits.inlandrevenue.gov.uk or call the helpline 0845 300 3900. 

Make the most of savings tax breaks 
You can invest up to £7,000 a year in Individual Savings Accounts with no capital gains tax and little income tax on the returns. You can withdraw money from the ISA at any time. Note, however, that as of April 2004 the tax credit on dividends will be abolished. 

If you have a Tessa due to mature, make sure you roll it over into a Tessa Only ISA or (Toisa) within six months of the maturity date. It doesn’t matter if you change providers – as long as you keep within the six months to maintain its tax exempt status. 

For more adventurous investors, there are tax breaks if you put your money into start-up businesses. Enterprise Investment Schemes allow income tax relief of 20 per cent on initial investments up to £150,000. Any profits are exempt from capital gains tax as long as you hold the scheme for at least three years, and exempt from Inheritance Tax after two years. 

Venture Capital Trusts work in a similar way, but income tax relief is limited to £100,000 of your initial investment and there is no exemption from inheritance tax. Make the most of buy to let If you have lived in a property before letting it out, there are considerable tax breaks to be had when you come to sell the property. The rise in the property’s value when it was your main residence is not taxable, nor are any gains in the three years before you sell. There is also a £40,000 lettings allowance.

Get a lodger 
Homeowners who rent out a room in their property can earn up to £4,250 a year free of income tax. 

Reduce inheritance tax liability 
Anything left to a spouse is tax free, as are gifts to charity. Otherwise, if your estate is worth more than 
£242,000, anything over that value is liable for inheritance tax at 40 per cent. This taxable amount includes assets held in trust and gifts you have made in the seven years before your death. 

However there are gifts you can make which are exempt. You can give £3,000 a year to anyone you wish, plus a range of other gifts which are detailed by the Inland Revenue. You can make as many smaller gifts as you like providing these are ‘out of normal expenditure’ and don't affect your standard of living. By making full use of these exemptions you can gradually reduce the size of your estate. To find out more visit www.inlandrevenue.gov.uk 

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LEGAL ease

Angela Maxwell,State Benefits and Retirement Consultant gives us an update on the new legislation and this year’s budget

The new Pension Credit 
The savings capital limit, above which you would not be eligible for financial help from the local authority with care home fees, has increased to £19,000. For Scotland it is still £18,500. 

The new Pension Credit, (PC), which is provided by the Pension Service, was introduced from 6th October 2003. This is designed to provide pensioners with a minimum level of income and also to reward those who have saved during their working life, up to a certain limit. In the past, those who had managed to save a little were no better off than those who had not saved at all. Under the new system, even small lifetime savings will be rewarded and the existing capital limits, currently excluding some people from help, will disappear. 

There are two main parts to the PC: the guarantee credit and the savings credit. 

The guarantee credit replaces Income Support for people of 60 or over also known as the Minimum Income Guarantee, (MIG). If your income from all sources is less than £102.10 for a single person or 
£155.80 for a couple, the state will top it up to these levels. These levels can be even higher for some disabled people, carers and homeowners with certain housing costs. See next paragraph for treatment of your savings/capital. 

For those of 65 or over, the savings credit will provide 60p a week extra for every £1 of income received from pensions, savings, or certain other sources of income over and above the full basic state pension level which is currently £77.45 per week. However, there will be a maximum weekly savings credit of £14.79 for a single person and £19.20 for a couple. Capital exceeding £6,000, (including money in the bank or building society, shares, premium bonds etc), will be assumed to produce an income of £1 per week for every £500 or part of £500 over the £6,000. 

Unfortunately, when your weekly income exceeds either £102.10 or £155.80 for a couple, then the amount of savings credit starts to be scaled back. The claw back is 40p for every £1 of income you have over these thresholds. So you will effectively receive nothing extra if your income exceeds approximately £139 for singles and £204 per week for couples as the savings credit will have been whittled away to nil. Remember, these levels could be higher if you have the housing, disability or caring responsibilities 
mentioned above. 

If you are already in receipt of Income Support, you will not need to make a claim as you will automatically be transferred to the new system. The letter which is being sent to all other pensioner households will explain how to apply by phoning the pension credit application line on 0800 99 1234. Those who do not receive a letter can still apply by ringing that number. You will in fact have until October 2004 to apply and, if you qualify, will still have your payment backdated for 12 months. 

There is a leaflet explaining the new Pension Credit which includes charts and written examples outlining your possible entitlement. You can ring the Pension Service on 08456 065065 for a free copy of “Pension Credit: Pick it up. It’s yours”. 

Payment of state benefits in hospital 
For long-stay hospital patients, the government has announced that the downrating of certain social security benefits will now not take place until a claimant has been in hospital for 52 weeks. 

Winter fuel bonus increased for those over 80 
The winter fuel bonus of £200 will be increased by an extra £100 for households where the single householder or at least one of a couple reached the age of 80 by the 21st September this year. You can ring the winter fuel helpline on 08459 151515 if you need further information. 

FUND ACCOUNT INFORMATION

FUND ACCOUNT AS AT 31 MARCH 2003

FUND ACCOUNT AS AT 31 MARCH 2003

The following table shows the rate of increases that have applied during the last ten years.

LONG TERM INVESTMENT PERFORMANCE

Making Contact

If you have any queries, need advice on your pension, or wish to contact us for any other reason please write to:

Avon Pension Fund
Floor 3 South
Riverside , Temple Street
Keynsham
BS31 1LA

or call freephone: 0800 0644155

email: avon_pension@bathnes.gov.uk

Direct Payments helpline
0800 107 2000

www.buy.co.uk

www.saveonyourbills.co.uk

www.ukpower.co.uk

www.unravelit.com

www.uswitch.com

National Consortium for Sheltered Housing

01905 21112

Health Ombudsman’s helpline

0845 015 4033

www.ombudsman.org.uk

The Pension Credit Application Line 
0800 991234 

The Pension Service 
08456 065065 

The Winter Fuel Helpline 
08459 151515 

at ease is published for Avon Pension Fund by Evolve.

Evolve 
91 - 97 High Road Ickenham 
Uxbridge 
Middlesex 
UB10 8LB 
email: richard.g@evolve-print.com 
website: www.evolve-print.com

Neither the publishers nor the Avon Pension Fund can accept responsibility for the views of this newsletter’s contributors and, although every effort is made to ensure the accuracy of the contents, readers are advised to take appropriate professional advice before acting on the information or advice in these pages.

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