Proposed changes to pensions tax relief

Dear Colleague

The Government has proposed changes to the tax relief treatment of pension contributions, which the FDA believes represent another hit on members' pensions. These proposals follow the Budget announcement that public sector pensions will, in future, be uprated in line with increases in the consumer prices index (CPI) and not the retail prices index (RPI), and before the Hutton Commission has produced its report.

These changes are likely to affect a wide number of FDA members and could have significant tax implications for members contributing towards pension schemes. Those most likely to be affected include:

(i) members with long service and/or significant promotional or high pay rises;
(ii) high-earners and members with enhanced or primary protection;
(iii) members retiring on ill-health or redundancy grounds.

The FDA is submitting a response to the Government's consultation on these changes and has also prepared a briefing for members. These documents can be accessed by clicking on the following links:

FDA briefing on proposed changes to pensions tax relief

FDA response to Government's proposed changes to pensions tax relief