ppp forcast

Ordep

My daughter payes into a PPP to the tune of £54/month.

Her latest statment/forcast reads;

1) Estimated value of the non-protected rights payments paid into your plan £34,800.
2) Giving an estimatedtaxable monthley pension of £95.
3) Estimated value of the protected rights paymente paid into your plan £1,900.
4) Giving an estimated taxable monthley pension of £5.

This is gobbledy gook to us.
Could some one kindley explane it better for her.

Thanks

dunstonh

1) Estimated value of the non-protected rights payments paid into your plan £34,800.

Based on current contribution levels that is the estimated final fund value.

2) Giving an estimatedtaxable monthley pension of £95.

Thats the estimated monthly income at the selected retirement age using the criteria requested (or default criteria). The criteria is mentioned in the notes.

3) Estimated value of the protected rights paymente paid into your plan £1,900.
4) Giving an estimated taxable monthley pension of £5.

At some point she was contracted out of SERPS/S2P. may only have been a year judging by the size of the protected rights pot. So, it adds another £5pm (estimated) to the income.

yelf

If you contract out from the state second pension (previously SERPS), your NIC contributions get rebated to your pension provider. These payments are classed as protected rights. All otherpaymets (from wage) are classed as non-protected rights