Pension Contribution

[Bullitt]

Hiyah

Can my employer’s pension contribution into my personal pension plan be counted as ‘earnings’ for the HSMP application? The pension contribution is in effect a ‘benefit in kind’, although due to its nature is non-taxable. There is a clause within my contract of employment regarding the employer’s pension contribution.

Many thanks.

[Chess]

Can my employer’s pension contribution into my personal pension plan be counted as ‘earnings’ for the HSMP application? The pension contribution is in effect a ‘benefit in kind’, although due to its nature is non-taxable.

Is this a 'Company' pension plan or an 'individual' pension plan??


In otherwords, if you left the company tomorrow..would you retain the 'employers' contribution???


IMHO, employer contributions do not account towards your income

[Bullitt]

Thank you for your prompt response.

It is a personal pension plan. For the same reason, I need not repay my employer’s contribution if I were to leave the company.

I would argue that this is ‘earned income’ as it forms a sizeable chunk of my salary (about 8%) per month and its provision is included in my contract of employment. Some years ago, we were asked to increase our working hours from 35 hours to 37.5 hours per week. As part of the incentive to work longer hours, we were offered new benefits (which included the pension contribution) that previously did not exist under the old regime.

I am not sure if it will change your answer but hopefully it does! Any further thoughts or comments on this matter would be appreciated.

[Chess]

It is a personal pension plan. For the same reason, I need not repay my employer’s contribution if I were to leave the company.

So is it a Stake Holder Pension or one of thjose bought off the high street from the likes of Swiss Life?

I would argue that this is ‘earned income’ as it forms a sizeable chunk of my salary (about 8%) per month and its provision is included in my contract of employment.

I would classify it as part of your income, but it would be beneficial if you supplied your contract of employment, and also obtained a letter from your current employer to explain the scenario - as its quite tricky to workout/understand..

..dont forget that Civil Servants ? (including those guyz at HSMP are not necessarily that sharp - despite making life changing decisions) - so make their work simple by explaining the nittygritty


All the best

[tyrex2000]

I am being paid a 15% pension allowance as cash-in-hand (as against paying to the Govt. plan, sort of a 401K). To my other local colleagues in Singapore, this is being paid directly into their Govt. pension account.

I also get one-off year end bonus which is about 2-3 months worth of pay.

Can I include this pension allowance and the year-end bonus as part of
income ?? It can help me cross the bar into 27,000

[simar]

Hi ,
I also wants to show my personal pension account( in which both mine & companies contribution goes of same amount). THis money is mine. Ie even if I leave the company this money will remain with me. Thorugh this money is not that much but is nessary to pass 7500 pounds barrier( india) .
Thier is another second component called gratuty. Now this money is only received when I leave the company or get retire. I am sure this money will no way get added in my gross income as per hsmp terms.

But the pension money that goes to my account I guess I should go ahead & apply by showing that as income also.

I have written a mail to hsmp people. But I vaguly asked them weather Provident fund & gratuty both will be part of my income. The reply came negative that retiral benifits are not counted. I guess I should have explian the or asked for first component only.

I would like to ask from experts do I should go ahead & apply with showing only the first ( personal pension money) in my part of gross income. I will have to be in pains in explaining that the personal pension money is mine and not of the company even if I leave them.

Any suggestoins from the fellow applicants are also welcome who have sucessfully shown this kind of part of money.