pension deductions

[Gary55]

if you are made redundant or leave through ill health i know you get so many weeks money paid but are pension contributions also taken out for the corresponding weeks or does it stop straight away . i would prefer the extra boost to pension and have it taken out if this scenario arises thanks

[RobertT]

I think the answer is no, you don't pay pension contributions on any element of redundancy or IHR payments.
Any ability to do so would presumably mean RM would be paying in too, which I don't think they'd be willing to do.

Unless someone knows otherwise?

[derricksmyth]

Over £30 k redundancy taxed at 40%. I think to avoid this the balance can be paid into bonusplan?

[RobertT]

The first £30k of a redundancy payment is tax free, with anything over being taxed under normal PAYE rules. So if your total income for the financial year is below £50,270 then you'll pay tax at 20%. Any income over that amount is taxed at 40%.

Any income that's over taxed will be repaid, either directly or via a change in tax code.

No additional payments above the standard weekly amount are allowed into Bonusplan. But it may well be possible to put some redundancy pay into Flexiplan.

[derricksmyth]

The first £30k of a redundancy payment is tax free, with anything over being taxed under normal PAYE rules. So if your total income for the financial year is below £50,270 then you'll pay tax at 20%. Any income over that amount is taxed at 40%.

Any income that's over taxed will be repaid, either directly or via a change in tax code.

No additional payments above the standard weekly amount are allowed into Bonusplan. But it may well be possible to put some redundancy pay into Flexiplan.

Sorry was meant to state Flexiplan, I always get them mixed up lol

[NWpostie]

Over £30 k redundancy taxed at 40%. I think to avoid this the balance can be paid into bonusplan?

The threshold has been £30k for years, it's time to update it to £45k to take into account inflation and cost of living crisis.

[Gary55]

I think the answer is no, you don't pay pension contributions on any element of redundancy or IHR payments.
Any ability to do so would presumably mean RM would be paying in too, which I don't think they'd be willing to do.

Unless someone knows otherwise?

Thanks

[freespeech]

I think the answer is no, you don't pay pension contributions on any element of redundancy or IHR payments.
Any ability to do so would presumably mean RM would be paying in too, which I don't think they'd be willing to do.

Unless someone knows otherwise?

Thanks

I looked at the final payslip of my other half with VR and there is only tax and no Pension or NI.