occupational pension

LYN T

Registered User
Aug 30, 2012
6,958
0
Brixham Devon
Hi

The LA tried this one on me:( Pete was self funding to start then when the LA had to part fund they sent me a breakdown of costs. They had taken ALL of my Husband's occupational pension. I phoned them and they told me I had to ask for it:(:(:(:(

So I did. LOUDLY!:D

I was sent an amended breakdown but I received that within days. By the way check the maths; not only was mine incorrect re above, but it was added up incorrectly:confused:

Take care

Lyn T
 

2jays

Registered User
Jun 4, 2010
11,598
0
West Midlands
2jays - sorry to go off topic, but perhaps your pensions expert could help me. I'm expecting a very small occupational pension, due in Aug, of only about £40 a month. I'm planning to ask for it in a lump sum. If they agree, and, I'm expecting to live at least another 20 years, how much would be an acceptable offer? This may be impossible to answer, but I'd be interested in his input.

Thanks, and sorry to the OP to go off topic.


Will PM you
 

Saffie

Registered User
Mar 26, 2011
22,513
0
Near Southampton
I agree with Lyn, Claire. I have queried the annual statement of future fees to be paid each year. I am sure it is just a simple error on the part of the LA's financial dept.
Simple to them but no so to you or your mother of course!
I would ring them and speak to the person whose name is on the letter you received.

As I have never been asked to fill in a new form each March 31st, they just send out a statement of future fees based on what they know -but what they know is not necessarily correct! I did ask the financial officer if he was psychic as I hadn't received details of my husband's future pension figure and yet they assumed it to be something it turned out not to be! This has happened both years.

Once I have rung, the FO asks me to send a letter stating what I say it should be and they adjust it accordingly, immediately. There is no need for a delay.
Please don't worry yourself about this. It will be sorted out. Just contact the LA financial team.
 

Saffie

Registered User
Mar 26, 2011
22,513
0
Near Southampton
Piph, complete self- funders can keep whatever they like. They just have to be able to pay the fees!
Can I amend that slightly?
I am aware that LPA and Deputyship affects this so it is not wholly correct.
I was posting from an LA point of view whose rules are pretty rigid.
However, the OPG were far kinder and more lenient about my using my husband's money for paying the household bills that the LA were.They confirmed this over the phone and also accepted what I rwote on the annual Deputyship report.
Just to clarify.
 

2jays

Registered User
Jun 4, 2010
11,598
0
West Midlands
I've read lots of posts about the wife being able to keep 50% of any occupational pension, but how is this actually worked out?
Is it 50% of the gross amount or the net amount?
Is tax paid twice, once by the husband and then again by the wife?
I know one of you wise people will know the answer, so thank you in advance.

As I said... It depends.

If it's the LA that splits the pension then tax is paid.

What OH is questioning is why isn't the pension split by the pensions provider before tax, then each half would be taxed separately at the possible different tax bands. That way, the one who doesn't pay a tax is only taxed on their tax band and the other who pays high tax is taxed in their rate of tax.

If it's the way LA calculates, the "non tax payer" is being penalised by getting a lower pension than they could possibly be entitled to.

Might be worth a chat with the pensions provider to see if the pension can be split 50/50 before LA get involved.

Feel I've just opened a can of worms... :eek:
 

LYN T

Registered User
Aug 30, 2012
6,958
0
Brixham Devon
I'm a bit confused now!

Crag rules states that if spouses occupational pension is halved then for tax purposes the pension is taxed by the person whose name it is in. I just transfer my half into my bank account ( half the amount my Husband receives into his account)

OOps have I done something wrong?

Take care

Lyn T
 

LYN T

Registered User
Aug 30, 2012
6,958
0
Brixham Devon
Can I amend that slightly?
I am aware that LPA and Deputyship affects this so it is not wholly correct.
I was posting from an LA point of view whose rules are pretty rigid.
However, the OPG were far kinder and more lenient about my using my husband's money for paying the household bills that the LA were.They confirmed this over the phone and also accepted what I rwote on the annual Deputyship report.
Just to clarify.

Is this acceptable b y the LA Saffie? I have been paying household bills from my quickly depleting savings?

None of this is clear is it? It's no wonder there are so many differing opinions.

I wish each LA would have some kind of leaflet which states what is acceptable.

Take care

Lyn T
 

Saffie

Registered User
Mar 26, 2011
22,513
0
Near Southampton
I think you are making this more complicated than it is 2jays.

This is an LA arranged split and, as I said earlier, nothing to do with paying income tax, nor with the pension provider. It is the net amount that is split.

Nor would people who work with income tax necessarily know much about it if they haven't come across it in their personal lives.
It is just an allowance the LA makes if it is wanted.
It doesn't have to be wanted either.
It can sometimes be more advantageous for the wife to forego the half-pension and apply for pension credit.
This was suggested to me and I know of at least one TPer who has done this.
In my case I am marginally better off with accepting half my husband's teacher's pension but that is debatable as if you have pension credit, you don't pay council tax.

It may even have been what Claire's financial assessor was thinking and why this has happened but I obvioulsly can't know that.
 

2jays

Registered User
Jun 4, 2010
11,598
0
West Midlands
I'm a bit confused now!

Crag rules states that if spouses occupational pension is halved then for tax purposes the pension is taxed by the person whose name it is in. I just transfer my half into my bank account ( half the amount my Husband receives into his account)

OOps have I done something wrong?

Take care

Lyn T

Then you must be right.

Just asked OH again...

It may not be possible to halve the pension if you are not divorced. Therefore pension taxed in pensioners name but In some schemes it may be possible to halve the pension before tax even if not divorced.
 

Saffie

Registered User
Mar 26, 2011
22,513
0
Near Southampton
I'm a bit confused now!

Crag rules states that if spouses occupational pension is halved then for tax purposes the pension is taxed by the person whose name it is in. I just transfer my half into my bank account ( half the amount my Husband receives into his account)

OOps have I done something wrong?

Take care

Lyn T

No Lyn.
You are doing exactly what I am doing - and what we are supposed to be doing!!!
 

Saffie

Registered User
Mar 26, 2011
22,513
0
Near Southampton
Is this acceptable b y the LA Saffie? I have been paying household bills from my quickly depleting savings?

None of this is clear is it? It's no wonder there are so many differing opinions.

I wish each LA would have some kind of leaflet which states what is acceptable.

Take care

Lyn T

I'm afraid that they wouldn't accept it Lyn, which is why the LA refused to contribute to Dave's fees until his capital went down to £18,000 rather than the £23,250.

This was when Dave was still self-funding too of course but they said his capital wouldn't have gone down as quickly if it hadn't been used for paying utilites. As if they came to £5,000 anyway!!!

It was also why I rang the OPG about it as I thought I had committed some unforgivable sin!
The OPG said, not at all, quite acceptable to do so!

However, as I am living by the LA rules, I immediately transferred all our Direct Debits to my BS account and have paid all from my account ever since!

Lyn - I thought Pete had CHC funding so why are you concerned about what the LA wants?
 
Last edited:

Early riser

Registered User
Mar 16, 2014
23
0
Yorkshire
Thanks to everyone who answered my post.

Special thanks goes to Saffie and LYN T, who both have husbands with this heartbreaking illness.

Best wishes.
 

LYN T

Registered User
Aug 30, 2012
6,958
0
Brixham Devon
Lyn - I thought Pete had CHC funding so why are you concerned about what the LA wants?
The pessimist in me thinks that one day it will be taken away:eek: He went through on the three month review so no need to worry for a year

Thank for clarifying Saffie

Take care

Lyn T