Annual Statements

We tend to find that in many cases people have lost touch with their pension provider. You should always write to your provider and ensure that you send them your address when you move. If you have kept your provider appraised of your current address, then write to them and complain. If that does not work, then write to us at Pensions Advisory Service and we will try to help you.

For a Personal Pension Plan, the annual statement should be issued within 12 months of joining and once every subsequent 12 months. Those in Stakeholder Schemes are entitled to a statement within 3 months of the end of each scheme year.

This is a problem that many people find and you should refer back to the issuer or get a friend or relative to help you. You may also consider asking a financial adviser but be aware that they may charge a fee. Alternatively you can contact the Pensions Advisory Service and we can talk you through anything you do not understand.

The amounts shown as a projection are never guaranteed and it is important to remember that the statement will change from year to year. The statement will always advise you that it is issued for illustration purposes only and that the figures are not guaranteed.

This term applies to those plans which contract out of the State Second Pension.

Protected Rights is that part of your fund built up from contributions paid to the personal pension from the State and are governed by different rules then those which apply to the rest of your fund, e.g. an annuity has to be based on unisex annuity rates rather than on the sex of the scheme member. It is important to remember that during the period you are contracted out you will not accrue pension under the State Second Pension Scheme.

The following information should be contained in this statement:

• The value of your fund on the day before the first day of the statement year.
• The value of your fund on the last day of the statement year and the amount of any investment gain/loss arising from that year.
• Details of member contributions.
• Details of employer contributions, if any.
• Details of tax relief paid by HM Revenue & Customs.
• Details of any contracted out rebate made on your behalf, (this is a rebate due to being contracted out of the State Second Pension).
• Date of birth and any age-related rebate details.
• The value of any benefits transferred from a previous scheme, including the date it was received and the name of the scheme.
• The amount deducted from contributions towards payment of the scheme charge.
• Any other deductions.
• Government regulations now require your pension provider to include in your annual benefit statement an illustration of the pension income you might expect in retirement. This will take into account how inflation between the date of the statement and your expected retirement date could reduce the buying power of your pension income.