Hi Folks!! Been a while again since I have posted. My organisation's Final Salary Scheme, of which I am a member, is ceasing on 31/3/10. I get automatic discharge on 7th April but pay into an IPA until June 2012. I have been given the option of joining an alternative pension scheme within the organisation or opting out completely?
As I would have to notify the OR of change in income if I opted out it appears more beneficial that I transfer to the new scheme? I currently pay around £133 to my Final Salary Scheme. If I opted out I presume that the OR would take 66% of this amount? Is there anyone in similar situation?
I certainly would not advise you to opt out of a pension scheme to make further contributions to the OR and ultimately your creditors.
If you transfer to another pension scheme within your organisation, there are absolutely no problems. The Official Receiver would not be able to touch it. If the amounts that you would be paying into the new scheme are roughly the same as what you were paying,I would not even muddy the waters by telling the OR.
Thanks John. I think that is what I will do, much easier. I don't think there will be much difference in amount as my NI will increase with the new pension which will off-set the slightly reduced pension contribution. I was originally thinking of putting the money I was paying into a bond or something but know that would not be allowed. Cheers.
Works Pension
Posted - 18 February 2010 : 22:19:26
