The value of any funds held under a personal pension scheme….

Currently, there are 0 users and 1 guest visiting this topic.
Viewing 12 posts - 1 through 12 (of 12 total)
  • Author
    Posts
  • #37851
    Stalbansbenefits
    Participant

    Right, we all know that the value of funds held under a personal pension scheme is disregarded by schedule 6(31) of the working age HB regulations.

    However, this disregard isn’t replicated within the Pension Age regulations, and presumably this is deliberate – once you hit pension age, you should be taking your private pension and if you elect not to, it kinda makes sense that any money in a pension fund should be taken into account in the assessment of any benefit entitlement.

    The reason I am asking this is because we have a claimant with an ‘unsecured pension contract’ and I’m not sure if we should be looking at the capital held within this fund rather than the sums he receives – I’ve googled unsecured pension contract a bit and I’m not entirely sure I understand what it is, but apparently you can elect to not convert it into an annuity until you reach a certain again.

    Anyone got any ideas – the customer receives payments into his bank account from this fund, but doesn’t receive any kind of payment slips or similar in respect of these payments – he states he is drawing the maximum income possible, but I’ve no idea how I could verify this or whether we should be looking at the value of the fund instead…

    #106566
    Stalbansbenefits
    Participant

    Anyone…?

    #106568
    John Boxall
    Participant

    What used to happen was that you had to use the proceeds of a pension plan to purchase an annuity.

    This is no longer a requirement and you can now draw down the capital by regular installments which is what it seems your claimant is doing.

    http://www.clarityglobal.com/research/drawdown_pension.pdf

    Annual income twenty pounds, annual expenditure nineteen nineteen and six, result happiness. Annual income twenty pounds, annual expenditure twenty pounds ought and six, result misery. The blossom is blighted, the leaf is withered, the god of day goes down upon the dreary scene, and—and in short you are for ever floored.

    Wilkins Micawber, Ch12 David Copperfield

    #106898
    Stalbansbenefits
    Participant

    I’m still confused by this one though. The Pension Age regulations don’t allow a disregard for the value of funds held under a personal pension fund. Therefore, because he has chosen not to purchase an annuity, it is likely he is going to be excluded from benefit because of the capital held in this fund?

    #106907
    chris harvey
    Participant

    The regs are not very clear. I think between regs 41(1-7)and 67(5-7) they set out what you do with deferred pensions. You get the maximum income drawdown figure from the pension plan provider and use that as notional income.

    #117531
    david kearney
    Participant
    #142034
    CJay100
    Participant

    Hi- can anyone advise for the following – pensioner with pension fund. We have received a drawdown review – plan provider Transact

    Current investment of 40,197.57 in a balanced portfolio. No requirement to take any income from policy but could receive maximum allowable annual income (MAAI)of £2147.35 and can purchase an annuity of £1.899.96 per year. Neither option taken up. Fund is going along very well so can see why not taking any income from this. She is 62 years of age and now gets SRP only. I am not sure how to treat this capital in the fund. I am inclined from clues on here to take the MAAI and convert this to a weekly income. It looks like an ongoing long term plan so i doubt whether this is to be realised any time soon.

    1. I plan to disregard the capital amount.2. I plan to to take the MAAI as income. 3. I plan not  to take the potential annuity amount either.

    This could be a WIB case as fraud intervention so any help to make this correct is well received.

     

     

     

    #142036
    chris harvey
    Participant

    I think taking the MAAI figure is ok, the regs talk about counting as notional income any pension income which she might be entitled to if a claim for it were made and also income from a pension scheme which the claimant has elected to defer. The MAAI seems to fit this definition.

    I am intrigued by the WIB (Weekly Incorrect Benefit) reference. WIB's were abandoned in 2006.

     

    #142037
    peterdelamothe
    Keymaster

    This is a topical discussion because of the plans to allow pension holders to withdraw all the cash. It is already in place on an interim basis but the full plans start from April 2015. The expectation is that millions aged 55 and above will grab the cash on offer.

    http://www.bbc.co.uk/news/business-26653312

    gives more info. How does this affect HB? Nothing much has been said on this in the media but I am guessing if you cash in early and get capital then you may lose your benefits.

    btw local government staff cannot get their money at the moment or from next April.

    #142054
    CJay100
    Participant

    Thank you both for replying and i think i am on safe ground with MAAI. Chris, I think fraud want to record the overpayment but may not be interested now.

     

    #142063
    CJay100
    Participant

    Chris, can i clarify – under spc reg 41, it also metions annuity.My customer has not taken up the opportunity to purchase an annuity either which would give an annual yield of 1899.96. It seems that may need to be taken into account as well. Your thoughts appreciated.

    cyril

     

     

    #142064
    John Boxall
    Participant

    Hum……………

    So, assuming I work until I'm 65 I can then invest my pension in a property or two which I will let to my youngest sons who will then be 17 & 18 – and HB will pay!

    Marvellous, a huge win for me but not perhaps for the taxpayer

     

    Annual income twenty pounds, annual expenditure nineteen nineteen and six, result happiness. Annual income twenty pounds, annual expenditure twenty pounds ought and six, result misery. The blossom is blighted, the leaf is withered, the god of day goes down upon the dreary scene, and—and in short you are for ever floored.

    Wilkins Micawber, Ch12 David Copperfield

Viewing 12 posts - 1 through 12 (of 12 total)
  • You must be logged in to reply to this topic.