www.iva.co.uk

I pay into a work pension direct from my salary each month. Would I have to cancel this if I applied for an IVA?

Hi.. I haven't had to cancel mine.. but I work for government and the pension is mandatory, unless you have a private one

Not usually. I would always fight for my clients to retain their occupational pension schemes, but sometimes creditors will not allow personal pension schemes on top.

Mine is direct from my salary, and I was allowed to keep mine.

That sounds ok but what if you are paying more then the basic occupational pension, would I have to reduce my payments or would I be allowed to leave it at its current level? sorry to hijack someone elses subject but an answer to this might be useful to some.

I think that you are only allowed to pay the basic.

I was told that any AVC's (Additional Voluntary Contributions) had to stop.

My understanding is that because a non AVC pension uses your National Insurance Contributions to build your pension it cant be taken away from you.

You cant, however, make additional payments, as these are above and beyond the National Insurance threshold.

Therefore, they'd be classed as savings, which you're not supposed to be able to make during an IVA.

(Not a broker, just sharing my understanding)

I don't think I am making any AVC's, my occupational pension has 4 payment levels 1/80th, 1/70th, 1/60th & 1/50th I am currently making contributions at the highest level which is 1/50th, would this be ok in an IVA? in any case I am unable to change it until next April under the rules of the pension! it all gets a bit complicated doesn't it??

Hi Fox, it is complicated isn't it ...

Maybe when you're due for your review you should just ask your IP, I've always kept in contact with mine, and I've been faced with a fair few challenges in my first 30 months of IVA.

If he says they have to stop, well, they have to stop (suspended actually) until your IVa is over, and then you can resume.

Whatever you do, don't try to hide anything from the IP, always be open and honest, they can't help you without knowing everything there is to know.

Keep smiling,

DT

Your pension contributions have to be reasonable in line with your age and the percentage you are permitted to invest in the scheme. I would say that anything over 6% could be viewed as excessive by creditors - but at the end of the day this is for your creditors to rule on and not the IP.

Unfortunately I had to stop paying mine when I got a second job but then it was non compulsory scheme. I was also already receiving an occupational pension from my first job (not very much though) which is of course classed as income. I only wnated to top it up to a reasonable amount for when I retire so I seem to have lost out both ways. No leisurely cruises for me after next year. Still such is life.

I think I pay 6% of my salary which is the lowest amount you can pay. From what you have all said it looks like I can keep it – which I really want to. Thanks guys x

I am sure that will be fine - and at the end of the day this is your creditors' decision if they wish you to forego the pension, and your IP should be fighting for you to retain this.

I take that once you have been told that your pension contributions are safe, that is it until the end of the IVA? It's not revisited at your annual review?

The reason I ask is that mine have recently gone up to 6.8%. I would hate to have to come out of the scheme now when I am only a few years away from being able to retire.

Good question Kallis3 - i would also like an opinion on this