Being stupid or doing the right thing?

liketoknow

xylophone - can I just ask you where does - http://ferrierpearce.com/portfolio/taylor-wimpey fit into all this?

xylophone

xylophone - can I just ask you where does - http://ferrierpearce.com/portfolio/taylor-wimpey fit into all this?

It just showed the connection between Wimpey/Taylor Woodrow Pension scheme and AON.

The other links are what lead me to think that your Wimpey pension is deferred DB.

liketoknow

xylophone wrote: »

It just showed the connection between Wimpey/Taylor Woodrow Pension scheme and AON.

The other links are what lead me to think that your Wimpey pension is deferred DB.

I thought it had changed to DC?

'The firm will transfer its DB scheme members into its defined contribution (DC) scheme.'

kidmugsy

liketoknow wrote: »

I thought it had changed to DC?

'The firm will transfer its DB scheme members into its defined contribution (DC) scheme.'

They may well have transferred future contributions by members and employer into a DC scheme, while the accrued benefits of the DB scheme sit snug, growing until the members reach scheme retirement age.

xylophone

The firm will transfer its DB scheme members into its defined contribution (DC) scheme.'

I would think that this refers to active members.

It would appear that you worked for the company back in the 70s/80s when there was only a DB Scheme and you left with a deferred pension.

Once Hymans have taken over administration, you should ask for a statement showing your position with respect to your pension.

liketoknow

Are there any other questions I should ask apart from the ones jamesd suggested yesterday?

xylophone

Establish the type of pension -DB/DC.

Ask for an up to date statement of benefits.

liketoknow

I will do. I am going to write to them today and ask the questions people have said on here I need to ask but can I ask of you -
The new management company don't take over until April 1st, would that be too late to get the 25% tax free sum out and open a Sipp with HL to get the £720 tax relief for this tax year? My earnings will be lower this year as I will have only had 2 weeks of the SP.
Could I put all the 25%, possibly £6000 - £7000 into the SIPP instead of £2880 and would there be any advantage to this?
If the new managers don't do flexible drawdown on the pension I have for the rest of it, would I need to transfer, if allowed, all of it to the SIPP, although I don't think that would be allowed as it would be more than my earnings? If not, what should I do with it?

liketoknow

If the balance of 75% is transferred rather than withdrawn, do you pay tax on it?
I have a credit with HMRC of around £2000 which I left in for quite a number of years in case I got to a point I would have to pay tax. It was more than that, but I have just asked for some of it back.
I left it there as it is supposed to be earning interest anyway. Would HMRC use that to go towards any tax I owed?

xylophone

With regard to accessing your Wimpey pension in this tax year, I would imagine that you are too late.

If this is a DB pension, you will not be going into drawdown.

It is likely that you would be offered up to 25% Pension Commencement Lump Sum and a monthly Scheme pension thereafter.

There may be other options.

Really no further comments can usefully be made before full details of this pension are available.

With regard to pension contributions and tax relief, it is possible to pay into a Relief at Source scheme (Hargreaves Lansdown SIPP is one such) the greater of net relevant earnings ( pension receipts do not count as relevant earnings) up to the Annual Allowance or £2880 and receive tax relief.

http://www.hl.co.uk/pensions/interactive-calculators/tax-relief-calculator

There would just be time to do this in the current tax year although the tax relief would not be added for about eight weeks.

With regard to the operation of how the credit with HMRC works, I cannot comment - other posters who are or have been self employed may know.