Pension and tax Q

[goodolpete]

I left a big company, lets call it ICI, some years ago and now
work for another, lets call it IBM. I earn 30K at IBM, and
am paying equal amounts with the company into a pension
scheme. My ICI pension of 15K has now kicked in, on
which I pay a lot of tax. Can I up my IBM pension
contributions and get more tax relief?
|P

 

[tim....]

I left a big company, lets call it ICI, some years ago and now
work for another, lets call it IBM. I earn 30K at IBM, and
am paying equal amounts with the company into a pension
scheme. My ICI pension of 15K has now kicked in, on
which I pay a lot of tax.

If you don't need the money can you not defer this pension until later
(which should increase the amount that it does pay when you do take it)

Can I up my IBM pension
contributions and get more tax relief?

If the IBM pension allows you to do this, yes

tim

 

[Roger Mills]

I left a big company, lets call it ICI, some years ago and now
work for another, lets call it IBM. I earn 30K at IBM, and
am paying equal amounts with the company into a pension
scheme. My ICI pension of 15K has now kicked in, on
which I pay a lot of tax. Can I up my IBM pension
contributions and get more tax relief?
|P

Speak to your 'IBM' pension administrator. You may be able to pay AVCs
(additional voluntary contributions) into your pension fund - which will
get you tax relief. However, unlike your main contributions, it's
unlikely that they'll be matched by extra contributions from the
company. Also, they'll probably go into a separate pot from which you'll
ultimately have to buy an annuity - rather than earning you an extra
pension based on your final salary.
--
Cheers,
Roger
____________
Please reply to Newsgroup. Whilst email address is valid, it is seldom
checked.

 

[Reentrant]

I left a big company, lets call it ICI, some years ago and now
work for another, lets call it IBM. I earn 30K at IBM, and
am paying equal amounts with the company into a pension
scheme. My ICI pension of 15K has now kicked in, on
which I pay a lot of tax. Can I up my IBM pension
contributions and get more tax relief?
|P

Are you sure you want to? Quoting from www.amipp.org.uk:

"For decades [IBM] obtained a talented, loyal, un-unionised workforce by
a practice of being competitive with leading companies in all of its
benefits. In answering a question about pensions in payment (PIP), ie
how the value of pensions is affected by inflation, IBM confirmed and
documented that for PIP, like all the other benefits, it aimed to be
competitive with leading companies. This was only an "aim" because
IBM's economic circumstances might have prevented it. Another document
explains the constraint of affordability.

IBM's PIP practice has been the worst of all comparable companies. It
turns out that this is not due to affordability, but to a mechanical
rule for degrading the value of pensions, irrespective of economic
conditions or what other companies did. This transition from "One of
the Best", in practice and predicted, to actually "One of the Worst"
took place after many people had retired".

 

[Roger Mills]

I left a big company, lets call it ICI, some years ago and now
work for another, lets call it IBM. I earn 30K at IBM, and
am paying equal amounts with the company into a pension
scheme. My ICI pension of 15K has now kicked in, on
which I pay a lot of tax. Can I up my IBM pension
contributions and get more tax relief?
|P

Are you sure you want to? Quoting from www.amipp.org.uk:

"For decades [IBM] obtained a talented, loyal, un-unionised workforce by
a practice of being competitive with leading companies in all of its
benefits. In answering a question about pensions in payment (PIP), ie
how the value of pensions is affected by inflation, IBM confirmed and
documented that for PIP, like all the other benefits, it aimed to be
competitive with leading companies. This was only an "aim" because IBM's
economic circumstances might have prevented it. Another document
explains the constraint of affordability.

IBM's PIP practice has been the worst of all comparable companies. It
turns out that this is not due to affordability, but to a mechanical
rule for degrading the value of pensions, irrespective of economic
conditions or what other companies did. This transition from "One of the
Best", in practice and predicted, to actually "One of the Worst" took
place after many people had retired".

"Let's call it IBM" doesn't necessarily mean that it *is* IBM!
--
Cheers,
Roger
____________
Please reply to Newsgroup. Whilst email address is valid, it is seldom
checked.