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Pension scheme payments

Posted: Mon Jun 29, 2020 2:40 pm
by tim595
I started an IVA this year. I am due to have a salary increase of around £375 this year and £500 next year before tax. Before my IVA I wasn’t paying into a pension scheme. If I began paying into my when I had one of these increases would I only have to pay half the remaining amount into my IVA as the agreement just says the minimum amount. For example if I began paying £200 into my pension when I get my Salary increase (£375-£200=£175) would I pay 50% of £175 extra into my IVA providing other expenses haven’t gone up?

Re: <t>Pension scheme payments</t>

Posted: Mon Jun 29, 2020 2:47 pm
by Foggy
Probably not, as the pension payment is not an agreed expense -- they will work on you getting the full increase of £375, therefore increasing your IVA payment by £187.50. Should you choose to divert your share to your pension that is up to you, of course.

Re: <t>Pension scheme payments</t>

Posted: Mon Jun 29, 2020 3:13 pm
by tim595
Based on these increase it is likely that I will pay the full amount on my IVA incl fee before the end of the 60 month. Does that mean it will end early?

Re: <t>Pension scheme payments</t>

Posted: Mon Jun 29, 2020 3:19 pm
by Foggy
Mon Jun 29, 2020 3:13 pmtim595 wrote:
Based on these increase it is likely that I will pay the full amount on my IVA incl fee before the end of the 60 month. Does that mean it will end early?
If you hit the full original debt, plus fees and possible statutory interest before the end date it will end early. Stat. interest is sometimes excluded, but not often. It is calculated at 8% p.a on the daily reducing balance.