lgps death in service payment and pension

dazzadub

jem16 wrote: »

The answer to that is No. It's quite clearly laid out in the scheme rules that a Survivor's pension is payable.



Yes it is.

Is your father-in-law still working?

Yes he is still working. With the government payment to him bevermentbenefit he gets taxed on that.

jem16

dazzadub wrote: »

Yes he is still working. With the government payment to him bevermentbenefit he gets taxed on that.

It will all be added to his income and taxed accordingly. It will be important to make sure the tax codes are correct.

What does he earn at work?

atush

If he doesn't need this money yet because he is still working, he can contribute the pension income to a pension and then not have to pay tax on it.

dazzadub

atush wrote: »

If he doesn't need this money yet because he is still working, he can contribute the pension income to a pension and then not have to pay tax on it.

Didn't think of that

dazzadub

jem16 wrote: »

It will all be added to his income and taxed accordingly. It will be important to make sure the tax codes are correct.

What does he earn at work?

His work earnings around 30k a year. His tax code for this year is 639l as they reduced his tax free amount because he gets bereavement allowance for 52 weeks

jem16

atush wrote: »

If he doesn't need this money yet because he is still working, he can contribute the pension income to a pension and then not have to pay tax on it.

He'll still pay it later, albeit with the benefit of a 25% tax-free lump sum.

If he becomes a higher rate taxpayer through having the pension income then that's different.

jem16

dazzadub wrote: »

His work earnings around 30k a year. His tax code for this year is 639l as they reduced his tax free amount because he gets bereavement allowance for 52 weeks

Can you clarify what he's receiving as Bereavement allowance and what the LGPS pension will be?

dazzadub

Bereavement is around 66 a week for 52 weeks. Started 28 the march 2013.

The pension amount they gave has changed as they had wrong salary on there paperwork.

The last pension amount given is 1700 a year which is around 138 a week approx.

But this figure is set to change as they had the amounts and job status wrong. They had her down as part time but she was fill time.

Her pension pot is 28k approx in total. Which will be paid over his life time. He is 52

jem16

dazzadub wrote: »

The last pension amount given is 1700 a year which is around 138 a week approx.

How many years service did your mother-in-law have?

Her pension pot is 28k approx in total. Which will be paid over his life time. He is 52

Forget this reference to "pot". There is no such thing in a final salary pension. Where are you getting this from?

What is important is number of years service and final salary.

I'm basically trying to find out if your father-in-law will be a higher rate taxpayer although that looks unlikely from rough figures given.

The pension company should use BR as their tax code with your father-in-law's work using his main tax code. Make sure this happens so as not to have underpayment of tax.

With those figures, I would be more inclined to invest or save the pension money rather than use another pension.

dazzadub

So you say its in his best interest to transfer money to his own pensions to get later in life rather then getting the money now.

Or do you mean take money and invest it into so a isa or something.


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