Responding to the details about the changes to tax relief announced by the Government today, David McCourt, Senior Policy Adviser at the National Association of Pension Funds (NAPF), said:
"We appreciate that the Government is trying to allow pension scheme members to mitigate tax charges through a reduction in their scheme benefits.
“But we are extremely disappointed that the threshold at which they can do this has been set at only £2,000. This low threshold is likely to encourage more people to use this option and this will lead to an increase in administration and costs for pension schemes.
“These changes will add cost and bureaucracy to what already is one of the most complex pensions systems in the world. This contradicts the Coalition Government’s objective to minimise the burden on business and to reinvigorate workplace pensions.”
Notes to Editors:
1. The Government’s announcement is available at http://www.hmtreasury.gov.uk/press_27_11.htm
2. The NAPF is the leading voice of workplace pensions in the UK. We speak for 1,200 pension schemes with some 15 million members and assets of around £800 billion. NAPF members also include over 400 businesses providing essential services to the pensions sector.
Paul Platt, Head of Media, NAPF, 020 7601 1717 or 07917 506 683, [email protected]
Christian Zarro, Press Officer, NAPF, 020 7601 1718 or 07825 171 446, [email protected]