CMS Excessive Pension Contributions - 60% of salary

[ChoppyWaterss]

My ex has put in a CMS Reconsideration and it's been accepted as somehow their salary has more than halved from HMRC's original figure in April. I know that they've not reduced their hours, are in the same employed job with the same company, so the only logical explanation can be they've paid a huge lump sum into the pension (from savings!). This is clearly to avoid CMS as if they had been doing this previously the HMRC figure would have shown it. It has reduced CMS payments by 50%.

Has anyone managed to successfully challenge excess contributions and if so how did you do it? I think they must be paying 60% of salary into a pension which I can only dream of doing!

They’re allowed to do this, so you won’t get anywhere

Is it not classed as deprivation of income?

No

No

They are allowed to do that, up to the maximum annual pension allowance of (normally) £60,000.

Do the CMS payments still cover your dcs' costs?

You can pay a maximum of £60k of your earnings into a pension and the CMS consider pension contributions when calculating child maintenance.

There wi be nothing you can do about it (if that is what your EX has done).

Mine did this, though on a smaller scale.

(He is now 64, unable to get a good job as he has flounced arrogantly out of so many in his profession. He lives alone in poverty with his cat as his 3rd marriage failed, and all his kids think he's a berk. He blew his lump sum at 60 and is not eligible for benefits. I have trudged on working steadily. My kids love me and retirement will be ok.)

You can but try. One day your kids will know who had their back.
It's crap, isn't it.

Yes and I can see this already for ex, he's does nothing for his kids. Won't even let them step foot in his house as his wife doesn't want them there.

They are very foolish when they let their lovely kids down.

This does come under diversion of income rules. You are allowed to challenge if they seem excessive compared to other circumstances (e.g. their age). For a 60% level the NRP would have to be aged 55+

"If the private pension contributions have been declared the decision make should consider whether they seem excessive compared to the NRP’s personal circumstances, including, for example, their age. The former Financial Services Authority (FSA) guidelines should be used for comparison." The FSA guidelines were:
Age contributions started Required % of income
30 12 - 18%
35 16 - 22%
40 18 - 25%
45 25 - 30%
50 30 - 45%
55 45 - 70%

Unfortunately I came across a website, won't say which, but it was a forum like this one with loads of dads asking how to legitimately reduce their child maintenance payments :( and pension contributions was the top answer.

I believe the max you can pay in annually is the lower of £60,000 or your taxable earnings figure.

Definitely under 55. Thanks for this that's useful. I spoke to the CMS and they said that they can see the salary reduced significantly after the CMS application went in. They suggested I put in a Change of Income asking them to look at this again. If the reason turns out to be pension payments they will consider what is reasonable, so I'm guessing they will use the FSA guidelines, which based on the fact he's been contributing for years to a pension should be nowhere near 60%. If they feel NRP is deliberately artificially lowering his income to reduce CMS liability then a proportion of the pension payments may be disregarded as a NRP should support their children fairly given the financial ability to do so. They also suggested I separately take it to tribunal. Could be a lost cause but you've got to try!

It’s a lost cause.

I can see you're a SM from previous posts, so I'll take this with a pinch of salt. Hope you're never in the position of being a RP as suspect you may feel differently.

(removed)

Maybe all you mums should take into consideration how the dad is feeling, works hard to provide for his kids in his time. To have an ex who has the ability to work a well paid job but decides to work minimum hours claiming every benefit she can and family allowance.
Maybe he is best to put into his pension so when he does retire he can help his children more in there adult life instead of his ex spending it on what ever she wants to. On top of family allowance 2 kids don't cost £500+ per month, all it does it take away from the dad of what he can do with his children.
the whole separation system is corrupt and based solely around women.
CMS go by nights stayed, I get my kids at 10am and they go back 6:30pm. They just got up, not dressed and no breakfast and then they go back in pyjamas ready for bed. No cost to her on them days at all but because they slept there I have to pay.
The system is just wrong!
To all the dads putting in there pension, go for it, it is literally the only thing on your side, when your hand is forced

What on earth are you talking about? If you want your children overnight then go to court and get a child arrangement order. You can have 50:50 care if you want it, funny enough most dads don't!
Who said I'm working minimal hours? I'm not. I work just as hard as any dad. A resident parent needs to provide a permanent home, often in decent school catchment areas which increase the price, a NRP doesn't need to worry about that. £500 a month goes nowhere near to paying a mortgage, bills, food, clothes, activities etc for 2 children where I live.
No-one is saying a NRP doesn't have the right to save for their pension, but not at the expense of contributing towards their children properly.
I agree the CMS system needs a complete overhaul but it very much favours the NRP. A lot of men in this country somehow think they shouldn't have to provide for their children and it's the state or mother's responsibility. Disgusting.

Kids absolutely cost hundreds of pounds. It’s not just that it’s opportunity cost to the resident parent. I now have 50/50 with my ex and am much better off as I can work full time with flexi hours with decent pay rather than crappy min wage school hours mum jobs.

If Dads want to pay less then maybe they should put the time and effort in. It’s not cheaper though by the time you include half of clothes, hobbies, school lunches and trips, haircuts food and hot water bill. It’s what you should be funding though as a parent.

Calm down Donald and stop making this thread all about YOU (typical man). If you want to do that start your own. I'm the OP so naturally if you respond with nonsense on my thread and address "all you mums" then I'm going to correct you.
So you say you are either working or have your kids? Welcome to my world and the world of most working RP! In fact, get this, I often do both at the same time! Shock, horror.
Now Donald imagine that. Coming home from your long shift and straight into mealtimes, homework, lunchboxes, washing, bedtimes. No down time or just having the kids on your days off (wouldn't that be nice). Imagine working from home in the holidays and having the kids there everyday. Juggling both. No flouncing off out the house and "catch you this evening kids". Nope, they are with you every single minute.
I don't know the reasons why your ex only works 2 days but maybe it's because she has to fit around YOUR shifts. What if she wanted to work shifts as well? Are you going to have the kids everytime she wants to work? Oh no of course not because presumably she has to work around you.
Anyway Donald I'm not particularly interested in your set-up. Maybe your ex is as you say, I know some mothers can be just as lazy/selfish as fathers. This thread is about NRP who contribute excess pension payments and I'm assuming this isn't you, so no idea why you piped up really apart from to have a moaning dig at mothers.
Have you also thought that not ALL RP are women? So please stop turning this into a men v women CMS debate.