PLSA Budget Representation February 2020
As the new Government prepares its first Budget, we look forward to seeing it putting into action its manifesto pledges for pensions. Our Budget submission sets out the key areas where the Government can support a world-class pensions system:
- Pensions tax relief – Remove the high earners taper to the annual allowance; fix the net pay/relief at source (RAS) issue and review the money purchase annual allowance.
- Continued support for the success of automatic-enrolment – Increase automatic enrolment contributions to 12% of salary by 2030, remove the Lower Earnings Limit and lower the minimum age for automatic enrolment from 22 to 18.
- Long-term care – A sustainable funding solution that will endure for a generation must meet four tests: maintaining retirement income adequacy, universality, fairness and affordability.
- Implementing the authorisation regime for Defined Benefit superfunds – Bring forward a robust and affordable regime for pension superfunds to provide schemes and employers with new options to secure members full benefits.
- Changes to the Retail Price Index (RPI) – Engage with the industry on a timeframe and approach to mitigate the impact on pension savers of changes that could lead to a reduction of up to 15% of their retirement income.
We’ll be livestreaming the Chancellor’s Budget during our Investment Conference 2020. See the programme and book your place.