What types of pensions are there?
There are three pension types – occupational pensions, personal pensions and a state pension. An occupational pension is where an employer has set up a pension scheme. The employer may make all, none or part of the pension contributions. A personal pension is a pension policy taken out by an individual with a pension provider, usually a life insurance company. If the bankrupt is actually receiving the pension payments, the trustee in bankruptcy will include such income in assessing whether the bankrupt can afford to make contributions towards his bankruptcy debts (under an income payments agreement or order) If the bankrupt is not due to receive the pension until sometime in the future, the trustee needs to establish whether the pension is a bankruptcy asset.
