HM Treasury

The DWP and Treasury are considering proposals to further restrict pension tax relief to fund the proposed Universal State Pension, a leading academic says.

Work and Pensions secretary Iain Duncan Smith has laid out plans for basic state pension reform in a bid to create a "state pensions system fit for a 21st century welfare system".

Public sector discount rates should be tied to UK economic growth to reflect future tax revenues needed to fund the scheme, the Pensions Policy Institute says.

Tax relief on contracting out should be scrapped for all pension schemes by 2012, the Office of Tax Simplification recommends.

UK - Members could end up cross-subsidising those with high pay rises as a result of the "scheme pays" annual allowance option.

The UK's largest trade union has demanded Fair Deal pension arrangements remain untouched after the government issued public consultation on them.

Pension funds target £100m saving in tax showdown; Fair Deal pension woe

The Treasury says people exceeding the annual allowance on pension savings must meet their tax charges as soon as they arise.

The Association of Consulting Actuaries supports early access but believes risk sharing schemes should be the government's priority.

UK - Proposals to allow early access to pensions will create a "bureaucratic nightmare" and should be shelved, industry groups say.