NHS pension payments in bankruptcy

22bear

I've made my court appointment to petition for bankruptcy on the 2nd of May having taken the appropriate advice that this is the best option for me. I'm employed by the NHS under the Agenda for Change payscale and currently pay into the NHS pension scheme at the 9% rate for 2013/2014...one thing I don't know is if the OR will want me to stop making contributions for the 3 years of my IPA, can anyone advise please?

debt_doctor

Hi,
This is from the technical manual. I seem to remember that only excessive contributions would be questioned, but seems any contributions will come under scrutiny................

31.7.109 Contributions to a pension or SAYE scheme

The official receiver should examine closely any deductions at source from earnings and consider whether payments or over payments into a pension scheme should be disallowed, as this is not an essential outgoing required to meet the reasonable needs of the bankrupt. In most cases an individual can elect to stop or reduce their contributions to a personal pension for a period of time. Whilst the bankrupt may argue this will have the effect of reducing future income, the official receiver should explain that the cost of maintaining his/her future income should not be made at the expense of his/her creditors. In the same way where the employer operates a SAYE saving scheme (where a proportion of the bankrupt’s income is deducted at source to purchase shares in the employing company), this expenditure should be investigated and disallowed, to ensure that the full amount of income available is included in an income payments calculation.

DD

22bear

Thanks Debt Doctor, I thought I had read that somewhere!

So can I ask does anyone have any experience then, of being told by the OR to stop making contributions to a work pension scheme, such as the NHS scheme or similar, while bankrupt?

kepar

My wife is in the NHS and is paying into the pension scheme. She was told by the OR that she could carry on paying into it during her br and for the remainder of her IPA.
It will not be a problem and you will be allowed to continue paying into it.

22bear

kepar wrote: »

My wife is in the NHS and is paying into the pension scheme. She was told by the OR that she could carry on paying into it during her br and for the remainder of her IPA.
It will not be a problem and you will be allowed to continue paying into it.

Aw, thanks Kepar, that's great to know!

sovilla

Same here I pay 6.5% into the NHS Pension and the OR has allowed me to continue.

22bear

sovilla wrote: »

Same here I pay 6.5% into the NHS Pension and the OR has allowed me to continue.

Thanks Sovilla! That's one less thing to fret about!!

luvchocolate

me too I pay in 6% was never even mentioned, sure you will be fine I think its if you are paying large amounts in they would not be happy x

22bear

luvchocolate wrote: »

me too I pay in 6% was never even mentioned, sure you will be fine I think its if you are paying large amounts in they would not be happy x

Thanks Luvchocolate, good to know!!