Pension Payment Dates

bobuk

I am a retired John Lewis Partner.I received a letter in March,along with all other Retired Partners,telling me that because HMRC want to change the way they collect tax.ie monthly instead of annually.The letter states that "Under the new requirements,the payment date determines the tax month,which runs from the 6th day of calendar month and ends on the 5th day of the following month.This change means that the Pension Scheme will no longer be able to continue with our existing practice of making the pension payments on the first day of the month and accounting for the tax during that month.
The John Lewis Pension Trustees have decided to comply with the HMRC requirements they will change the date of pension payments from July onwards from the 1st day of the month to the last day.
This means we will receive our pensions on the 1st of June then no more until 31st July,thus losing a month`s pay.
Do you think this is fair?

JoeCrystal

bobuk wrote: »

I am a retired John Lewis Partner.I received a letter in March,along with all other Retired Partners,telling me that because HMRC want to change the way they collect tax.ie monthly instead of annually.The letter states that "Under the new requirements,the payment date determines the tax month,which runs from the 6th day of calendar month and ends on the 5th day of the following month.This change means that the Pension Scheme will no longer be able to continue with our existing practice of making the pension payments on the first day of the month and accounting for the tax during that month.
The John Lewis Pension Trustees have decided to comply with the HMRC requirements they will change the date of pension payments from July onwards from the 1st day of the month to the last day.
This means we will receive our pensions on the 1st of June then no more until 31st July,thus losing a month`s pay.
Do you think this is fair?

Umm.... you do not lose a month pay. Just July payment is paid at the end of the month rather than start of the month. So no change there.

It might pose some difficulties for people who have no savings to tide them over.

Cheers,
Joe

McKneff

Presumably the June payment will be 'up front' paying for June

The july payment will be in arrears paying for July.

No loss as far as I can see

bobuk

What it means is that the 1st June payment has to last till 31st July.Whatever way it is looked at we still lose 4 weeks pension.

jem16

bobuk wrote: »

What it means is that the 1st June payment has to last till 31st July.Whatever way it is looked at we still lose 4 weeks pension.

You don't as you will get it after you die instead of having to pay back some.

Most people are paid in arrears too.