Why do I need to tell one Pension provider about other pensions?

Liamaiden

Hi,
Approaching my 60th birthday, my Post Office pension is due for payment. Had some paperwork from PO asking for details of my other pensions, needed by law apparently. Cannot find anything pertaining to this law on the net and want to know why they need to know - can anyone help please?
Many thanks
Linda

atush

I guess it wooud depend on the individual pension, and how you want to take it.

You would need to give that info if you are over the LTA, or you were asking about taking a pension via small pots rule for instance.

They might also need it for tax purposes if you are drawing a pension, as it is income so needs to be taxed.

Teapot55

One of your pension providers has to be the one that uses your personal allowance before they take the tax off. The others have to tax you at basic rate. They need to know which one they are. Usually the one paying you the largest amount is the the first as above.

Liamaiden

My PO pension has to be paid at the age of 60, I'm not currently drawing any other pension and still working. My current works pension is payable when I'm 65, state pension at 66. I have another small pension which I'm currently applying to cash in as it's less than £1,800. It's all so confusing to be honest...

dunstonh

In 2006, the rules required the pension providers to record the information. That changed in later years but some pension providers (mostly occupational) still ask you to tell them. There is no need but that happens.

Liamaiden

Thanks Dunstonh, does that mean I can refuse to provide the information? It would be nice to be able to quote the change of law and the year it happened, to help cover myself - is that something you could help with please?

dunstonh

does that mean I can refuse to provide the information?

Problem with that is you do not know what their response will be. Just because they do not need to know does not mean they will let you get away with it. Some occupational scheme administrators dont react to change very quickly and get stuck in their ways.

Number75

I know it doesn't answer your question, but I'm curious as to why you don't want to give it?

Liamaiden

As I said I'm applying to cash my small pension which is due when I'm 60 (in 3 months) but I won't get the paperwork until the middle of April. I've already listed my current works pension which isn't due until I'm 65 but what is the point of listing my small pension when I'll be cashing it. I just don't know how long it will take the small pension to pay out, if it'll cross over. I know I'll get the first 25% tax free and I'll have to pay tax on the remainder but I don't want it being 'accidentally' taken into account by the PO and me suffering because of it....I'm on my own so every penny has to count.

dunstonh

You know that the information they are asking for does not need to be accurate. Or indeed, even close to reality. Also, they wouldnt know if you had pensions elsewhere or not.

There is no consequence to you or them if you put nothing in the boxes and say there is no other scheme as long as you are nowhere near the lifetime allowance or going to fall foul of the reduced annual allowance through accessing a pension flexibly.

Liamaiden

Thanks Dunstonh, I am nowhere near the LTA - when I was going thru' my divorce my 3 pensions combined gave me about £330 a month, hence having to keep working until my state pension kicks in. Thanks for your help, I feel more comfortable now :j