Pension contribution in IVA

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Arthur1969
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by Arthur1969 » Fri Sep 01, 2017 8:58 am
Hi, can anyone advise me as to whether compulsory pension contributions should be included in my living expenses? I have been paying my pension 80.00 per mth from overtime until this year where we haven't had overtime at all so it has been a struggle. thank you!!
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Foggy
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by Foggy » Fri Sep 01, 2017 9:00 am
A compulsory pension deduction is normally deducted at source by your employer and so will not be included in your net take home pay and, therefore, will not need to be offset in an allowance as this is money you never got as income in the first place.
Arthur1969
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by Arthur1969 » Fri Sep 01, 2017 9:11 am
My IVA people calculated my nett earning but have not taken my pension into account. The have calculated my nett from gross minus tax and NI but have not also deducted my pension. So the nett income they have calculated my payments from does not match my payslip. My actual nett is minus an additional 80.00
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Foggy
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by Foggy » Fri Sep 01, 2017 9:17 am
I would challenge this with them, if it is a complulsory deduction it should be treated the same way as other compulsory deductions such as tax and N.I. Alternatively they should allow it as an expense (same result, different route). Sometimes creditors will object to pension contributions, but not generally if they are compulsory --- but this is for the creditors to decide not your IP ..... I am assuming that you have not had your creditors meeting yet. It might be an idea to have a quick chat with another provider to see how the land lies, if this one isn't being helpful at this early stage.
Arthur1969
Posts: 4
by Arthur1969 » Fri Sep 01, 2017 9:23 am
I am 4 mths from completion of my IVA and I am moving abroad so I am planning to complete early. However going over the figures it dawned on me that they have miscalculated my payments since the compulsory pension was introduced a few years ago.
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Foggy
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by Foggy » Fri Sep 01, 2017 9:41 am
Arthur1969 wrote:
I am 4 mths from completion of my IVA and I am moving abroad so I am planning to complete early. However going over the figures it dawned on me that they have miscalculated my payments since the compulsory pension was introduced a few years ago.



Ah right -- so that horse has bolted ! These monies would by now have been distributed to creditors and clawing them back would be impossible and could derail the IVA ( which you do not want at this late stage). With 4 months to go, completing early isn't really an option, as it usually takes a few months to get an early completion agreed with creditors --- the best you could do is lodge advance payments with the provider, which has no advantages at all. It is acceptable for you to service the IVA from abroad, we have many posters who do this.
Arthur1969
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by Arthur1969 » Fri Sep 01, 2017 9:45 am
Ok! Thank you!
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Michael Peoples
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by Michael Peoples » Fri Sep 01, 2017 9:46 am
This should have been spotted when the scheme was introduced and you could have then sorted it out. However, If you managed to make the payment from overtime and your IP allowed this then you may not be out of pocket but if your IP was also demanding overtime monies then you may have been hit twice. They could have reduced your payments when the scheme was introduced but this cannot be done unless you ask.

It may be best to just get the IVA closed down and move on as in fairness to the IP it does not look like they were informed by you of the new deduction and so they may have operated their calculations on the net figure.
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