Net-pay plan is not a proper resolution

Baroness Ros Altmann says pitfalls in the remedy need to be addressed

clock • 3 min read
Net-pay plan is not a proper resolution

At last, the government has published plans to ‘fix’ the net-pay pension tax anomaly and I am delighted to see serious proposals to tackle this problem. This issue remains an underlying risk for pension confidence and the sooner it is tackled, the better.

Pension schemes administered on a net-pay basis reduce the take home pay of over a million of the lowest earners in defined contribution (DC) pension schemes - those earning under £12,570 a year. E...

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