Result! - FAO Ian Millington

[Hull_Tiger]

Some of you may be aware that I have been conversing with my IVA company regarding my new job and subsequent pay-rise.
Basically, their advisor had told me that they require me to pay 100% of my pay-rise into the IVA and 100% of any additional income (OT / Bonuses) despite the fact I have not OT / Bonus clause in my IVA.
Today, after much pushing from myself to get a resolution from my IP rather than an 'advisor', I recieved the following from my IP:

Dear Mr. Tiger,
Thank you for your recent letter and income and expenditure form.

I have now had the opportunity of conducting the necessary review and can confirm that you are not required to increase your payments further. In arriving at this calculation I have taken into account the extra income you have earned and the increased expenditure. The overall effect is that there is insufficient disposable income to enable you to increase your monthly contributions.

You also requested clarification on additional income that may be required. As you do not have the 50% modification in your Arrangement, there will be no requirement for any additional income to be paid into your Arrangement. Please note, however, that I am obliged to review your basic net salary with a view to increasing your contributions on an annual basis if appropriate.

Just goes to show that it always pays to contact the organ grinder rather than rely on their minions.
I could do with a bit of clarification however. Does that last part mean that if I earn substantial, regular overtime they would increase my payments based on that? If I do the occasional bit of overtime but it is not on a regular basis, will I be safe?

Best regards

[MelanieGiles]

Hurrah - and well done to you for being persistent in demanding your IP's direct attention.

[Hull_Tiger]

Thanks Melanie.
To be honest, I was more than happy to increase my contributions based on my new salary but if my Ip has decided I don't need to pay any more, who am I to argue!
My real beef was with the OT. I found it incredible that I should be required to pay all of it when I had no modification. Where was the motivation to do it if I didn't get to keep any of it.

[Adam Davies]

Hi
A great result and to answer your specific quesion it relates to your basic pay only,not overtime
Regards

[ianmillington]

Many congrats Shaun- What a result!

That tells me that your review will include all extra earnings but credit will be given for necessary increases in expenditure. Further the term "if appropriate" is used which suggests an element of discretion. My guess is they will look at 50% of the net increase in disposable income (the IP is already using the term).

Cover yourself, however. If you get a pay rise /bonus/OT etc stick 50% of the net increase in take-home pay to one side, just to cover yourself in the event that at the next review he says you should have accounted for 50% of any net increase in DI. Make sense?

I do hope you are having a celebratory pint tonight.

Ian
PS - Can I also award some kudos to your IP who is clearly an eminently sensible and fair person. INM

[Hull_Tiger]

Hi Ian,
I'm saving the pint for weekend!
What I'm thinking on the overtime is like this - I earn a gross salary of £17200. If, over the course of the year, I earn £18500 gross from doing overtime (which is not guaranteed), would that be a justification for raising the payments bearing mind I may not earn as much as that the following year? I would have thought not but just need some clarification.
As you say, my IP seems very sensible and reasonable so I think I'm in safe hands.

[Adam Davies]

Hi
Your Ip talks about 'basic net salary' I do not read this as including overtime,although it's best to err on the side of caution
Regards

[ianmillington]

Well spotted Andy! So it may well be only pay rises that are taken into account. However, as you say it's best to err on the side of caution. If irregular OT were to be taken into account that could only take the form of a one-off payment after the event, so if you've got money put to one side there will be no nasty shocks. My view, however, is that you will have some money for a treat!

Great news.

[chris.g]

Well done Shaun, it pays to be assertive.... As my lovely mam used to say, 'shy bairns get nowt!!!'

[Hull_Tiger]

Point taken. Hopefully I should be OK. My annual review should be due in May, so there shouldn't be much to put away. Given that the IP has seen my I&E recently, I think it would be a reasonable assumption that my payments will remain fairly static come this time.

[Hull_Tiger]

Just another question about my I&E.
When I received the letter back from my IP, I received a I&E statement with the following:
Original - The original amounts stated on my proposal.
Revised - The amounts I put on my I&E eg. what I'm actually paying.
Agreed - This was mostly the amounts I put on the 'revised' I&E but anything I put as lower than the original had been put back up to their original level.

Is it normal that any savings I've made are still mine to keep?

Thanks

[ianmillington]

I think they are saying that certain expenditure items ought not to go under specified limits and they are leaving them be, notwithstanding your openness at them being less in reality.

Other than we have previously suggested you put by as a precaution,the savings do indeed appear for you to spend as you wish.

What a fair-minded IP you've got. You must be feeling pretty good about things, Shaun.

Ian

[Hull_Tiger]

Hi Ian,
I must admit, after all the hassle I had with their advisors, I'm almost in a state of shock as how well I've come through all of this.
I was fully prepared for a reasonable rise in payments and I'm feeling much better about my IVA than I was a few weeks ago.
When I read about what conditions other people are experiencing in their IVAs via this forum, I am in a very good position. When you also consider my house is also an excluded asset, I am a very lucky person.

Regards

[ianmillington]

Yes, you do seem in a better frame of mind than you were a month or so ago.

Onwards and upwards!