A couple of "A day" questions


G

ggroups

I've been trying to get answers from various pension providers
on the following, but no luck. I hope someone can give me some
useful info ...

1. Do post A-day pensions allow you to switch between
contribution 'modes' ??

For example, could you one year use a "stakeholder" mode and
pay up to £3500 without being paid a salary. And the year
after pay a std A-day contribution (maximum of your salary
that yr - subject to funding checks etc) ??


2. Is there any possibility of paying extra into a new A-day
pension before April 2006, if you are converting an existing
pension (EPP etc) that currently has particular funding
rules ??


Thanks in advance
 
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R

Rob graham

I've been trying to get answers from various pension providers
on the following, but no luck. I hope someone can give me some
useful info ...

1. Do post A-day pensions allow you to switch between
contribution 'modes' ??

For example, could you one year use a "stakeholder" mode and
pay up to £3500 without being paid a salary. And the year
after pay a std A-day contribution (maximum of your salary
that yr - subject to funding checks etc) ??

You're not really switching. You're simply putting in a contribution that's
somewhere between £3,600 and your maximum allowance (which is equal to your
earnings). If you put in less than £3,600 then you won't need to prove any
earnings. It's whether you can justify a contribution that's the issue,
nothing to do with switching 'modes'.

2. Is there any possibility of paying extra into a new A-day
pension before April 2006, if you are converting an existing
pension (EPP etc) that currently has particular funding
rules ??

No. The rules don't change until A-Day. There's no allowance for changing
the current rules in anticipation.

Rob Graham
 
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G

ggroups

Rob said:
I've been trying to get answers from various pension providers
on the following, but no luck. I hope someone can give me some
useful info ...
1. Do post A-day pensions allow you to switch between
contribution 'modes' ??
For example, could you one year use a "stakeholder" mode and
pay up to £3500 without being paid a salary. And the year
after pay a std A-day contribution (maximum of your salary
that yr - subject to funding checks etc) ??
You're not really switching. You're simply putting in a contribution that's
somewhere between £3,600 and your maximum allowance (which is equal to your
earnings). If you put in less than £3,600 then you won't need to prove any
earnings. It's whether you can justify a contribution that's the issue,
nothing to do with switching 'modes'.
Rob, thanks for the reply.

I will need to do a bit more research on the above.

I am planning to consolidate my SERPS bucket with my EPP come A-day.
It is not unclear how the govt will rebate me with such a pension.

For example, a current stakeholder plan will AFAIK mean the govt
contributes £800-odd to your £2800-odd to make the maximum £3600.

My SERPS bucket usually gets a govt contribution of £1000 p/a based on
the
salary I pay myself.

What the govt contribution rules will be for such a pension plan when
one is paying based on a stakeholder or SERPS out mode is not so clear.
Obviously one wants to ensure they are not getting lower govt
contributions than when the pension plans were separate and pre- A day
(more than is currently so is a bonus :) ) .


Regards
 

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