Senior public sector staff demand compensation for pension tax relief cuts

CFM (UK) Ltd. Mews Update: Highly paid public sector workers are demanding compensation for changes to pensions rules. A group of 12 trade unions representing hundreds of thousands of workers including doctors, police officers, head teachers and civil servants, have called for pension contributions to be swapped for wage increases or other more tax efficient perks.

The move comes ahead of a reduction in the annual limit for pension contributions and the lifetime allowance in April. Trade bodies, which have held private talks with David Gauke, Financial Secretary to the Treasury, over the changes, claim the new rules are discouraging applicants for top roles.

Alex Wild, research director at the TaxPayers' Alliance, said: "The gall displayed by unions demanding special treatment for the upper-echelons of the public sector elite is breathtaking - the tax system already allows top earners in the public sector to enjoy retirement incomes twice as high as those saving into money purchase schemes without triggering punitive tax charges. The last thing we need are complicated exemptions so those fortunate enough to be members of these gold-plated schemes can enjoy even more preferential treatment to the taxpayers who fund them."

The Daily Telegraph, Page: 1-2

Posted on January 12th 2016

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