I thought this was going to be compulsory? IPs should not deny their clients a right to a pension, so long as this would not jeopardise the IVA itself.
Every employer has to offer one to eligible employees, but as already said you can opt out.
Not a good idea, unless you have your own personal pension plan, in my opinion everyone needs a pension, albeit if you're just subscribing the bare minimum during the IVA.
We're willing to wipe the slate clean, give you a fresh start. All that we're asking in return is your cooperation.
I'm all for people paying into their pensions, but I worry about the burden on employers and how this will affect the cashflow of smaller businesses - who may only be able to afford this by effecting pay freezes or cutting jobs.
At present, I wouldn't see that I could pay into the pension without a reduction in my IVA payment, and I would believe that a majority of people in IVAs are in the same situation.
The compulsory opt in means that anyone in this IVA situation should make sure they do opt out and don't find themselves with a reduce monthly income suddenly and then trying to stop the scheme and having to claim back the funds.
If, by some sort of budgeting miricale, I was to find a way to reduce my outgoings to a level of 4% gross salary and use this to pay into the scheme, would this be satisfactory to my IP/creditors?
I think what you have to remember though for those of you who currently don't have an occupational pension is that you only pay income tax net of your pension contributions (so if you pay 3% of your gross salary into a pension that doesn't mean 3% less of what your current take home pay is as you would pay less tax also) so it wouldn't have as much of an impact on your take home pay as you would imagine (and therefore IVA payments)
These pensions sound like another tax/scam form the government. They will charge an annual fee on top of what the normal pension fees are so these NESTs would need to grow well to even hold their value.
I will not be rushing into one as I do not want to entrust my money to a government body, spivs in the City or a combination of both.
As far as I know, the scheme will only apply to individuals who don't already contribute to a recognised company scheme. Opt out of course is available.
I would say the more pertinent question is how creditors will consider these contributions.
It has been a long-held view by (most) creditors I have dealt with that pensions planning is a form of savings - that the benefit gained by writing off debts in an IVA outweighs the benefit of around 5 years pension contributions.
If individuals are automatically enrolled, it will be interesting to see if creditors take a negative view.
It is not that long ago that the protocol was amended to permit a minimum level of pension contributions, so perhaps the tide is turning.
An existing individual in an IVA may wish to use any discretion to reduce their payments to allow the pension contributions to be made without affecting the IVA, or to opt-out for the remaining duration of the IVA.
Very few problems cannot be resolved with an open and frank discussion.
Always discuss your problem honestly with your Nominee/Supervisor.
I understand your sentiments entirely, but not currently having a pension arrangement since changing employer, it would seem advisable to opt in purely due to the fact that employers and tax relief will generate a further 4% into the pot?
I'm currently thinking about cancelling a mobile phone contract and reducing my cable package to fund this. Would that be acceptable to my IP/creditors?
Provided you can maintain your IVA payments I see no problem and even if you had to get a small reduction it should be fine. Clients already in pension schemes are allowed to remain there so why should you be barred from joining one?
I personally have my doubts about them but not from an insolvency angle.
