A couple of "A day" questions

1. Do post A-day pensions allow you to switch between contribution 'modes' ??

For example, could you one year use a "stakeholder" mode and pay up to 3500 without being paid a salary. And the year after pay a std A-day contribution (maximum of your salary that yr - subject to funding checks etc) ??

You're not really switching. You're simply putting in a contribution that's somewhere between 3,600 and your maximum allowance (which is equal to your earnings). If you put in less than 3,600 then you won't need to prove any earnings. It's whether you can justify a contribution that's the issue, nothing to do with switching 'modes'.

1. Is there any possibility of paying extra into a new A-day pension before April 2006, if you are converting an existing pension (EPP etc) that currently has particular funding rules ??

No. The rules don't change until A-Day. There's no allowance for changing the current rules in anticipation.

Rob Graham

Rob, thanks for the reply.

I will need to do a bit more research on the above.

I am planning to consolidate my SERPS bucket with my EPP come A-day. It is not unclear how the govt will rebate me with such a pension.

For example, a current stakeholder plan will AFAIK mean the govt contributes £800-odd to your £2800-odd to make the maximum £3600.

My SERPS bucket usually gets a govt contribution of £1000 p/a based on the salary I pay myself.

What the govt contribution rules will be for such a pension plan when one is paying based on a stakeholder or SERPS out mode is not so clear. Obviously one wants to ensure they are not getting lower govt contributions than when the pension plans were separate and pre- A day (more than is currently so is a bonus :-) ) .

Regards