Pension tax changes for public workers lauded a fair choice
The government’s proposal of temporary changes to pension tax for public sector workers amid the Covid-19 pandemic is the fairest choice, says Royal London.
This follows provisional changes already approved to allow retired doctors and nurses to return to the NHS frontline to help contain the spread of coronavirus without jeopardising their pension provisions.
Royal London senior intermediary development and technical manager Moira Warner said: "After already making temporary changes for doctors and nurses, it is welcome to see government propose similar changes across the wider public sector so service quality can be maintained."
Relaxed rules would be applied across the whole public sector, around 5.42 million people according to 2019 statistics, for those who recently retired but have returned to work amid the crisis.
Warner said: "Public sector pensioners should note though, that the government does not appear to intend a wholesale relaxation of relevant rules.
"Anyone whose pension was already suspended or reduced prior to the current crisis as a result of returning to work is unlikely to benefit from these changes."
The written statement concerning the temporary measures was made by Treasury economic secretary John Glen at the House of Commons yesterday (22 April).
It read: "For public sector workers returning to support the government's response to Covid-19, the government intends to temporarily suspend tax rules that would otherwise apply significant tax charges to pension income received by recently retired individuals aged between 50 and 55."
Cabinet office minister of state Lord Agnew of Oulton added: "At this time, it is important that key public sector workforces can bring back workers with relevant and valuable experience to ensure that the government can continue to provide critical public services.
"Colleagues across government to ensure we remove any potential barriers to those who wish to return to work to help in our fight against Covid-19."
More on Regulation
Oxfordshire County Council pension fund improves following TPR action
Oxfordshire County Council has seen a "significant improvement" to its pension fund governance following action by The Pensions Regulator (TPR).
DB pension freedom rights 'eroded' by Dear CEO letter
The recent 'Dear CEO' letter sent by the FCA to pension providers could mean pension freedoms for defined benefit (DB) scheme members are "being eroded", one SIPP provider has warned.
SLA tribunal triumph over Lloyds termination of £109bn Scottish Widows mandate
Standard Life Aberdeen has won a tribunal in which it claimed Lloyds Banking Group was not entitled to give notice to terminate investment management arrangements for a £109bn mandate.
Treasury launches fresh inquiry into post-Brexit financial regulation as UK enters 'uncharted waters'
The Treasury Select Committee has launched a new inquiry into the future of the UK's financial services once it has left the European Union.
Cost transparency: Where are we a year on?
The transaction cost disclosure regulations have been in place for a year. Jon Parker says while there has been progress in obtaining data, there is a still a long way to go.
