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Forum Home  →  Discussion  →  Other universal credit issues  →  Thread

Pension contributions?

 

Gareth Morgan
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Managing Director, Ferret, Cardiff

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This is from the spotlight on earnings, guidance to DWP staff on answering queries.

“Is my private pension disregarded in the Universal Credit calculation? 
Private pensions are not disregarded for Universal Credit purposes if they are paid by a third party deduction. However, if they are taken at source (like the DWP pension) this is disregarded. This is also known as a pension contribution”

Could someone explain this?

     
ClairemHodgson
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Gareth Morgan - 04 June 2019 09:41 AM

This is from the spotlight on earnings, guidance to DWP staff on answering queries.

“Is my private pension disregarded in the Universal Credit calculation? 
Private pensions are not disregarded for Universal Credit purposes if they are paid by a third party deduction. However, if they are taken at source (like the DWP pension) this is disregarded. This is also known as a pension contribution”

Could someone explain this?

reads as though someone has muddled the contribution one makes to ones pension, compared to a pension one is receiving.

what a dreadful bit of writing….

     
Charles
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I presume they mean to say that only pension contributions with relief at source get deducted from the RTI figure. Net pay arrangements do not, because the RTI figure already removes the pension contribution.

See Note 1 in paragraph H3170 here.

     
Gareth Morgan
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Charles - 04 June 2019 11:29 AM

I presume they mean to say that ....

Well, yes… but that isn’t what they are, presumably, telling people.  This could seriously mislead people.  One for stakeholders?

     
NAI
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Unclaimed Benefits Campaign, Middlesbrough CAB

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“Seriously mislead people” As if?

     
Daphne
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Gareth Morgan - 04 June 2019 11:41 AM
Charles - 04 June 2019 11:29 AM

I presume they mean to say that ....

Well, yes… but that isn’t what they are, presumably, telling people.  This could seriously mislead people.  One for stakeholders?

Just on the train home from stakeholders Gareth! But will email it in - where exactly did you get it from - is that their internal guidance - is there a date on it?

     
Gareth Morgan
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Daphne - 04 June 2019 03:43 PM

Just on the train home from stakeholders Gareth! But will email it in - where exactly did you get it from - is that their internal guidance - is there a date on it?

From an FOI

https://www.whatdotheyknow.com/request/536701/response/1283912/attach/html/2/FOI2018 12590 Spotlight on Earnings.pdf.html

     
Daphne
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Thanks Gareth - I’ll email them

     
Ianb
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Macmillan benefits team, Citizens Advice Bristol

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What are they trying to say about how pension contributions are treated? It is clear that when pension contributions are deducted by the employer this is reflected in the reported RTI figure which is then used as net earnings for UC calculation purposes. It is my understanding that if a person makes pension contributions from their net earnings they are also entitled to have these contributions allowed as a deduction when establishing the earnings figure used for UC. Does anyone know how this is dealt with in practice and what a claimant is required to do to evidence pension contributions made directly by themselves?