Telling UC about starting pension.

MoodyMand45

I want to start a stakeholder pension whilst on UC but contributing a very small amount like £15 per month.

I have told my job coach this and she said that is up to you but you don't need to tell us about it because it is allowed, Is this true?

I am concerned that down the line someone could turn around and say "you never declared to us you were doing this" etc and i might have a different coach or hopefully be working by then.

Mojisola

One of my relatives has been doing this for some time now while on UC.

calcotti

You should be tell them because the pension contributions should be deducted by UC from your earnings figure used by UC to calculate the earnings deduction.

ElwoodBlues

Surely each monthly contribution is declared as part of the submission for each assessment period? So while you don't need to do a separate declaration, they'll get it all from the figures you submit?

Pension capital is disregarded capital, so all good there. And contributions are deducted from your net income (that they calculate you UC entitlement from), and you get 20% income tax rebate on personal contributions. So contributing to a pension seems like an all round win-win?

MoodyMand45

Does it make any difference as i currently don't have any work so just on UC, i am just wondering why this job coach is telling me to not say anything.

NedS

MoodyMand45 said:

Does it make any difference as i currently don't have any work so just on UC, i am just wondering why this job coach is telling me to not say anything.

That's correct. You would only need to declare it to UC if you wanted the pension contributions deducted from any earned income in that month. If you are not working, then there is no need to inform UC.

If you are working, then it's probably far easier to just make extra pension contributions into your employers pension scheme so they are deducted directly from your pay packet and again no need to notify UC.

calcotti

ElwoodBlues said:

Surely each monthly contribution is declared as part of the submission for each assessment period? So while you don't need to do a separate declaration, they'll get it all from the figures you submit?

I read it that the OP will be paying money into a pension out of your income (whereas it comes from) not by deduction through PAYE so there is nothing to report through RTI. UC would only know about the pension contribution if OP reports it. You're right that if OP is self-employed then the pension contributions can be included as part of their self-employment monthly return.

However OP has since clarified that, as I understand it, they are not employed or self employed.

MoodyMand45 said:

Does it make any difference as i currently don't have any work so just on UC, i am just wondering why this job coach is telling me to not say anything.

As NedS in these circumstances the pension contributions do indeed make no difference to UC. They aren't going to pay extra for the contributions  but would reduce the earnings deduction if there were any earnings to consider.

calcotti

NedS said:
If you are working, then it's probably far easier to just make extra pension contributions into your employers pension scheme so they are deducted directly from your pay packet and again no need to notify UC.

Knowing what you and many others have gone through to get contributions accounted for that advice is clearly very sound!