I have friend who is currently in a IVA agreement. He has been in it for just under a year and last month received a lump sum from a pension that he didn't know was coming to him. The pension was a protected rights scheme, therefore, his state pension in retirement will be lower than the normal rate. The insurance company sent him the pension forms and at that time he did not know the size of the lump sum. My friend ticked the box asking for the whole fund to be paid to him instead of just the tax free lump sum. When he received the cheque it was much greater than expected, we then got some financial advice and they spoke to the pension provider to see if we could return the cheque and just take out the tax free element so my friend had a monthly payment in retirement to top up his state pension. The answer back was no. My friend then contacted the IVA company and advised them of this money. My question is therefore, would a lump sum payment from a pension scheme be classed as a windfall or would it fall outside of the IVA and not be included as part of the agreement (in the same way as a PPI claim). The IVA company have issued him with a breach of contract as he has not paid part of the lump sum over to them. He is still currently waiting for their calculations before he does this as some of their figuraes do not tie up. We have been chasing them daily and trying to arrange a telephone appointment with his IFA and accountant to discuss. Yesterday he received a letter saying that they now wanted to instruct the EIF to look into PPI claims and stating that his supervisor could not conclude his supervision of the IVA until this done. Do they also have a right to do this as this will just prolong things further. My third and final question would be about obtaining legal advice, who would you suggest that we contact in this matter.
PPI does not, as you state, fall outside of the IVA and is captured as an asset and payable into the IVA estate. They do, as things stand, have the right to do this. Some firms accept a deed of assigment regarding PPI which speeds things up (so we are told).
Unless pension funds and proceeds were specifically excluded in the arrangement, this, too, will be captured.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
