occupational pension

Discussion in 'Legal and financial issues' started by Early riser, Apr 22, 2014.

  1. Lindy50

    Lindy50 Registered User

    Dec 11, 2013
    5,287
    Cotswolds
    I do :) Wish you luck, that is :D

    Hope you've managed to re-charge your batteries a bit

    Lindy xx
     
  2. jenniferpa

    jenniferpa Volunteer Moderator

    Jun 27, 2006
    39,429
    Claire - the truth is you don't need luck (although I'll wish you that anyway :)) - what you need is determination. That's because luck implies that you need the LA to make a judgement call. This isn't the case at all, they are legally required to do this. All you need is to calmly state that they are failing in their legal requirements and you expect them to fix the problem.

    You and your family are completely in the right about this and the LA is wrong. It might take a while to fix this I'm afraid but rest assured, it will be fixed.
     
  3. lin1

    lin1 Registered User

    Jan 14, 2010
    9,322
    Female
    East Kent
    Claire
    What a horrid shock for you, and shame on them for putting you through this.

    I agree you don't need luck as you have right on your side.
    Though I cannot quote chapter and verse, I know Jennifer is right.

    If you have Age UK or similar in wales , they may well be able to help you.

    Wishing you strength to see you through this.
     
  4. LYN T

    LYN T Registered User

    Aug 30, 2012
    6,967
    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
     
  5. 2jays

    2jays Registered User

    Jun 4, 2010
    11,585
    West Midlands

    Will PM you
     
  6. Saffie

    Saffie Registered User

    Mar 26, 2011
    22,501
    Female
    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.
     
  7. Saffie

    Saffie Registered User

    Mar 26, 2011
    22,501
    Female
    Near Southampton
    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.
     
  8. 2jays

    2jays Registered User

    Jun 4, 2010
    11,585
    West Midlands
    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:
     
  9. LYN T

    LYN T Registered User

    Aug 30, 2012
    6,967
    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
     
  10. LYN T

    LYN T Registered User

    Aug 30, 2012
    6,967
    Brixham Devon
    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
     
  11. Saffie

    Saffie Registered User

    Mar 26, 2011
    22,501
    Female
    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.
     
  12. 2jays

    2jays Registered User

    Jun 4, 2010
    11,585
    West Midlands
    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.
     
  13. Saffie

    Saffie Registered User

    Mar 26, 2011
    22,501
    Female
    Near Southampton
    No Lyn.
    You are doing exactly what I am doing - and what we are supposed to be doing!!!
     
  14. 2jays

    2jays Registered User

    Jun 4, 2010
    11,585
    West Midlands
     
  15. Saffie

    Saffie Registered User

    Mar 26, 2011
    22,501
    Female
    Near Southampton
    #35 Saffie, Apr 23, 2014
    Last edited: Apr 23, 2014
    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?
     
  16. Early riser

    Early riser Registered User

    Mar 16, 2014
    23
    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.
     
  17. LYN T

    LYN T Registered User

    Aug 30, 2012
    6,967
    Brixham Devon
    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
     

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