www.iva.co.uk

Last year I was auto enrolled into a pension by my employer. Only 1% of my net pay and this was shown on my pay slips, during the annual review without any comment from the IP.

I was wondering what is deemed an acceptable amount of someone's net wages to be paid into a pension whilst in a IVA. 5% 10%?

The Reason I ask....

Our family income is quite modest and we receive Tax Credits.

My employer offers Salary sacrifice pension contributions.

If my pension contributions deducted from my Gross (before tax), I obviously pay less tax NI and student loan, but I also receive an increase in TAX credits.

The resultant effect is a very small reduction in Net household income will massively increase the amount paid into the pension.

Whilst we don't have a much to contribute, and obviously don't want to cause any detriment to the IVA, we do want to maximise pension contributions where possible.
We want to keep the (effective) % reduction in total Net income to an accepted amount eyes of IVA (if there is such a thing)?

I do not believe there is any hard and fast rule (or, indeed, ANY rule). A lot depends upon the nature of the scheme and how long you have been in it, as well as your potential to catch up after the IVA, when your situation has dramatically improved.

Usually you would be expected to stick near the scheme minimum for payments and some IPs require you to opt out entirely. If you have a sympathetic IP it might be worth a chat, but, on the other hand, if he / she is a sleeping bear you don't want to be waving sharp sticks around!

We had to reduce our pension contributions to scheme minimum during the term of our IVA and then increased them again as soon as it was over.

I was allowed to maintain my contributions in full (deducted at source from my salary) and the contributions were quite high (can't remember the exact percentage now) and this was never questioned.

Just shows each iva is 'individual' .... speak across to your IP and establish their thoughts.

Thanks for your help.

Yea suppose your right, the change in circumstance is problem really, and yes I should await the IP approval before I do anything.

Think I will just not bother, and let this opportunity pass to be honest.

Going from past experiance, my IP is always too busy, and I will probably be retired by the time I get a response anyway.

and yea foggy don't want to wake the sleeping beast I might be lucky to have got away with the auto enrol thing to start with...