IVA and new pension

harvest99

My partner is in the middle of an IVA and has been notified by her former partners pension provider that her entitlement to a share in her former partners pension can be applied for shortly. She has options for partial lump sum or deferral. Her IVA administrator is not aware of this entitlement. She could defer until after she completes and is discharged from her IVA in just over 3 years time but she is wondering if she took some of her lump sum entitlement to ease some of her problems whether the pension plan provider will check her credit records and advise the IVA administrator of the payment. There is a reference in the pension paperwork to checking ID using a credit reference agency so they are likely to see the IVA on her records but will they advise the IVA administrator about the lump sum payment if she decides to take it.
I know she should tell the IVA people but she is reluctant to do this in case they require her to take the pension now and hand over the windfall rather than defer.

National_Debtline

Hello harvest99


I don't see why or how the pension provider would liaise directly with the IVA administrator in the manner that you describe - the IVA confers no obligations on third parties like the pension provider, only on your partner, who would normally be expected to declare any such lump sums cashed in.


The specific terms of your partner's IVA may say differently, but normally it is unlikely that an insolvency practitioner would be able to force someone to exercise their right to draw on their pension early. She needs to check her IVA agreement very carefully for any provisions specifically concerning her pension and ideally should contact one of the free debt charities for more detailed advice.


Dennis
@natdebtline