Family & Personal FAQs

I am starting a new job soon. The company has a pension scheme but I am beginning to worry about the future. I have read that some pension schemes are closing - what questions should I ask?

In most occupational pension schemes both the employer and the employee have to contribute. You can contribute up to 15% of your annual salary but most people pay between 5% - 8%. Sometimes there are other benefits such as life insurance, a pension if you have to retire early ie. through ill health or a pension for your dependants if you die.

Each scheme is different, so you would have to check what your employer is offering.

There are basically two types of occupational pensions:

  1. Final salary schemes
  2. Money purchase schemes

Final salary schemes usually offer the best deals. The pension you receive will depend on the number of years you work for your employer and the amount of your final salary.

Increasingly money purchase schemes are replacing final salary schemes, especially for new employees. As you are aware, a number of companies have closed their final salary schemes.

Your employer does not have to contribute to a money purchase scheme. The amount of pension you build up depends on the amount of contributions and how money is invested. On retirement you take a tax-free lump sum but the rest of the pension fund is used to buy an annuity. This annuity is invested and pays you regular instalments for the rest of your life.

I am thinking of divorcing my husband. He wil eventually get a pension from work. If we divorce, do I lose any entitlement to that pension?

Since December 2000 pensions can be shared on divorce. Alternatively your husband could offer you a lump sum payment in lieu of any payments from the pension. A third option would be to "earmark" the pension. This means that when he retires, the pension scheme will pay you regular payments.

I have heard that people are required to produce more documentation when renewing a vehicle tax disc. Is this correct?

Yes. You now need to produce the vehicle logbook and the reminder form together with a valid certificate of insurance and an MOT certificate if your car requires one. This is to try and prevent stolen vehicles being issued with tax discs.

If you have lost your logbook, you can ring 0870 240 6415 and be issued with a duplicate within three working days. If however your details have changed ie. address or name, then you need to complete form V62 available from the post office. You will need to provide supporting documents which evidence the changes.

Last updated: March 27, 2007