Am I missing something?

greenglide

Will I then be required to complete a tax return?

And if you are, is that a problem?

I always expect higher rate tax payers to do self assessment as a matter or routine. Is is hardly rocket science. The on line system for self assessment has been available for over 15 years now and it works well.

You do know that higher rate tax payers are entitled to additional tax relief on their gift aid contributions? Also, of course, there is the small matter of declaring interest received, even if already taxed, to pay the extra due.

MrRee_2

Thats no bother then

MrRee_2

Thank you newbie ..... most kind

uk1

zagfles wrote: »

Why do you think you'd get better protection from the PPF drawing it early? AIUI the protection gets better at NPD of the scheme, not the date you draw it.

My understanding is that so long as the fund isn't taken into PPF before the OP's normal retirement age and as long as the early pension taken is below the absolute limit (it is) then the protection is better in that it will not be scaled back. As far as I know if he waited and it went into the fund before he took it it is scaled back.

Also if he is taking pension whilst in the fund there are increases, but many DB schemes are discretionary which now often means zero.

Have I misunderstood the PPF? It wouldn't surprise me.

Jeff

atush

MrRee wrote: »

Will I then be required to complete a tax return?

For the pension alone? No, a phone call as i said before would be enough.

But if you have other issues as a HRTaxpayer and you have not given enough detail we cannot say. but a phone call , again to hmrc would tell you the answer.

MrRee_2

Cheers ...

zagfles

uk1 wrote: »

My understanding is that so long as the fund isn't taken into PPF before the OP's normal retirement age and as long as the early pension taken is below the absolute limit (it is) then the protection is better in that it will not be scaled back. As far as I know if he waited and it went into the fund before he took it it is scaled back.

Eh? Your first scenario says "as long as the fund isn't taken into PPF before the OP's normal retirement age". Well if that applies then if he takes it at normal retirement age it's not going to have gone into the PPF before he takes it then, is it??

If the fund goes into the PPF before NPD then it's scaled back, if the fund goes into PPF after NPD it isn't. Whether he's taken it or not is irrelevant.

Also if he is taking pension whilst in the fund there are increases, but many DB schemes are discretionary which now often means zero.

Increases on deferred pensions usually have to be increased with statutory requirements, which I think is inflation capped at 5% pre 2009 service and 2.5% post 2009 service. This is better than indexation in payment which is 0% for pre-97 service at 2.5% capped for the rest. Might be different if he still works for the company and they use an ongoing final salary link, then it'll depend on his payrises.

uk1

zagfles wrote: »

Eh? Your first scenario says "as long as the fund isn't taken into PPF before the OP's normal retirement age". Well if that applies then if he takes it at normal retirement age it's not going to have gone into the PPF before he takes it then, is it??

If the fund goes into the PPF before NPD then it's scaled back, if the fund goes into PPF after NPD it isn't. Whether he's taken it or not is irrelevant. Increases on deferred pensions usually have to be increased with statutory requirements, which I think is inflation capped at 5% pre 2009 service and 2.5% post 2009 service. This is better than indexation in payment which is 0% for pre-97 service at 2.5% capped for the rest. Might be different if he still works for the company and they use an ongoing final salary link, then it'll depend on his payrises.

http://www.pensionprotectionfund.org.uk/Pages/Compensation.aspx

No, it isn't scaled back.

If You Have Retired

You will have been receiving a pension from your scheme before your former employer went bust.

If you were beyond the scheme’s normal retirement age when your employer went bust, the Pension Protection Fund will generally pay 100 per cent level of compensation, which means we will generally pay you the same amount in compensation when your scheme enters the PPF.

Jeff

zagfles

uk1 wrote: »

http://www.pensionprotectionfund.org.uk/Pages/Compensation.aspx

No, it isn't scaled back.



Jeff

If you beyond the normal retirement date!! If you weren't then it is scaled back. So whether you take it early or not makes no difference!!

PensionTech

Yes, zagfles is entirely right. Look at the various scenarios:

1. Member takes pension before NRD, scheme goes into PPF before member's NRD. Result: member's pension is scaled back.
2. Member takes pension before NRD, scheme goes into PPF after member's NRD. Result: member's pension is not scaled back.
3. Member does not take pension until NRD, scheme goes into PPF before member's NRD. Result: member's pension is scaled back.
4. Member does not take pension until NRD, scheme goes into PPF after member's NRD. Result: member's pension is not scaled back.

So it is indeed irrelevant whether or not the member takes early retirement; if the scheme goes into the PPF before NRD, he will only get 90% of benefits, and if it goes into the PPF after NRD, he will get 100%, regardless of how long before NRD his benefits were in payment.