I HAVE BEEN IN AN IVA FOR 15 MONTHS AND HAVE JUST TURNED 60YEARS OLD. I HAVE BEEN INFORMED BY A PAST EMPLOYER FROM 1989 THAT I CAN NOW DRAW A SMALL PENSION (£636 PER ANUMM) WITH A LUMP SUM OF £4000 NOW. WILL I HAVE TO PAY ANY OF THIS TO MY IVA?
If the pension, and any resultant proceeds from drawdown, were specifically excluded from your IVA, then you ought to be able to retain the lump sum, but clearly your annuity will increase your disposable income and you may have to make higher monthly contributions as a result.
If the pension was not excluded, there is an argument that the lump sum may be deemed as a windfall, and you may therefore have to hand it over to your Supervisor. Check with them directly to be sure.
Do you need the extra money? If not, I would leave the pension where it is, as it will continue to benefit from market growth and may be worth a lot more to you once the IVA has concluded.
